AON (NYSE:AON) Reaches New 1-Year Low - Here's What Happened

Key Points

• Aon shares hit a new 52-week low, falling to $290.70 and trading near $291.19, well below their 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $397.47, though Wolfe Research issued a “Strong Sell” downgrade.
• Aon slightly exceeded quarterly EPS expectations but missed revenue estimates; it also maintains a quarterly dividend of $0.82 per share, while recent insider activity included a director’s 20,000-share purchase and executive stock sales.

Aon plc (NYSE:AON - Get Free Report) reached a new 52-week low on Tuesday . The stock traded as low as $290.70 and last traded at $291.19, with a volume of 1936284 shares changing hands. The stock had previously closed at $295.64.

Wall Street Analysts Forecast Growth

AON has been the subject of a number of research analyst reports. Weiss Ratings lowered AON from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday. Roth Capital set a $380.00 target price on shares of AON in a research note on Tuesday, September 1st. Citigroup began coverage on shares of AON in a research note on Monday. They set a "buy" rating and a $435.00 price target for the company. JPMorgan Chase & Co. raised their price objective on AON from $396.00 to $412.00 and gave the stock an "overweight" rating in a report on Monday, July 13th. Finally, Wolfe Research downgraded AON from a "hold" rating to a "strong sell" rating in a research report on Friday, September 11th. Twelve equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $397.47.

AON Price Performance

The firm has a market capitalization of $61.77 billion, a P/E ratio of 16.05, a P/E/G ratio of 1.50 and a beta of 0.66. The stock's fifty day simple moving average is $343.29 and its 200 day simple moving average is $332.51. The company has a debt-to-equity ratio of 1.34, a current ratio of 1.54 and a quick ratio of 1.54.

AON (NYSE:AON - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.80 by $0.01. AON had a net margin of 22.27% and a return on equity of 42.13%. The firm had revenue of $4.25 billion for the quarter, compared to the consensus estimate of $4.28 billion. During the same quarter in the previous year, the firm earned $3.49 EPS. The company's quarterly revenue was up 2.2% compared to the same quarter last year. On average, equities research analysts predict that Aon plc will post 18.93 EPS for the current year.

AON Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Monday, August 3rd were issued a dividend of $0.82 per share. This represents a $3.28 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Monday, August 3rd. AON's dividend payout ratio is currently 18.08%.

Insider Buying and Selling at AON

In related news, General Counsel Darren Zeidel sold 1,950 shares of AON stock in a transaction that occurred on Friday, July 17th. The shares were sold at an average price of $372.05, for a total value of $725,497.50. Following the completion of the sale, the general counsel directly owned 13,404 shares in the company, valued at $4,986,958.20. This trade represents a 12.70% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Lester B. Knight purchased 20,000 shares of the business's stock in a transaction on Wednesday, September 2nd. The shares were bought at an average price of $327.48 per share, for a total transaction of $6,549,600.00. Following the purchase, the director directly owned 163,000 shares in the company, valued at $53,379,240. This represents a 13.99% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have sold 4,450 shares of company stock worth $1,659,242. 1.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On AON

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AON. City National Bank of Florida MSD boosted its stake in shares of AON by 3.8% in the fourth quarter. City National Bank of Florida MSD now owns 867 shares of the financial services provider's stock worth $306,000 after buying an additional 32 shares during the last quarter. MassMutual Private Wealth & Trust FSB lifted its holdings in AON by 5.3% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 650 shares of the financial services provider's stock valued at $216,000 after acquiring an additional 33 shares during the period. Aspen Grove Capital LLC boosted its position in AON by 4.8% in the 1st quarter. Aspen Grove Capital LLC now owns 737 shares of the financial services provider's stock worth $238,000 after purchasing an additional 34 shares in the last quarter. CYBER HORNET ETFs LLC grew its stake in shares of AON by 6.1% during the 4th quarter. CYBER HORNET ETFs LLC now owns 627 shares of the financial services provider's stock worth $221,000 after purchasing an additional 36 shares during the period. Finally, Manchester Capital Management LLC raised its holdings in AON by 8.3% in the 4th quarter. Manchester Capital Management LLC now owns 468 shares of the financial services provider's stock worth $165,000 after purchasing an additional 36 shares during the period. Hedge funds and other institutional investors own 86.14% of the company's stock.

AON Company Profile

Aon plc is a global professional services firm that helps organizations manage risk, support workforce strategies and make informed decisions. Its principal activities include commercial risk brokerage, insurance and reinsurance consulting, retirement and investment advisory services, health and benefits consulting, and data- and analytics-based business solutions.

Aon serves businesses, governments, institutional investors and individuals across a broad range of industries and geographies.

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