AON (NYSE:AON) Reaches New 52-Week Low - Here's What Happened

Key Points

• Aon shares hit a new 52-week low, falling to $266.46 during Monday trading and remaining well below their 50-day and 200-day moving averages near $328–$329.
• Analyst sentiment remains broadly positive but has softened: 12 analysts rate the stock a Buy, six Hold, and one Sell, with a consensus price target of $394.53. Several firms recently cut their targets, while Wall Street Zen downgraded Aon to Sell.
• Aon slightly exceeded quarterly EPS expectations, reporting $3.81 versus the $3.80 consensus, though revenue of $4.25 billion fell short of estimates. The company also pays a quarterly dividend of $0.82, representing a 1.2% annualized yield.

Aon plc (NYSE:AON - Get Free Report) hit a new 52-week low during mid-day trading on Monday. The stock traded as low as $266.46 and last traded at $267.8650, with a volume of 47309 shares. The stock had previously closed at $269.45.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. UBS Group restated a "neutral" rating on shares of AON in a report on Monday, August 31st. Wall Street Zen downgraded AON from a "hold" rating to a "sell" rating in a report on Sunday, September 6th. BMO Capital Markets decreased their target price on AON from $375.00 to $360.00 and set a "market perform" rating for the company in a research report on Tuesday, September 1st. Barclays raised their price target on shares of AON from $372.00 to $382.00 and gave the company an "equal weight" rating in a report on Tuesday, July 7th. Finally, Mizuho decreased their price objective on shares of AON from $398.00 to $366.00 and set an "outperform" rating for the company in a report on Wednesday, September 16th. Twelve equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $394.53.

AON Stock Up 0.2%

The company has a current ratio of 1.54, a quick ratio of 1.54 and a debt-to-equity ratio of 1.34. The stock has a market cap of $57.30 billion, a P/E ratio of 14.86, a PEG ratio of 1.37 and a beta of 0.70. The company's 50 day moving average price is $328.34 and its two-hundred day moving average price is $329.25.

AON (NYSE:AON - Get Free Report) last announced its earnings results on Wednesday, July 29th. The financial services provider reported $3.81 EPS for the quarter, beating analysts' consensus estimates of $3.80 by $0.01. The business had revenue of $4.25 billion during the quarter, compared to analysts' expectations of $4.28 billion. AON had a net margin of 22.27% and a return on equity of 42.13%. The firm's revenue was up 2.2% on a year-over-year basis. During the same period in the prior year, the company earned $3.49 earnings per share. Equities analysts forecast that Aon plc will post 18.81 earnings per share for the current year.

AON Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Monday, August 3rd were issued a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Monday, August 3rd. AON's dividend payout ratio (DPR) is currently 18.08%.

Insider Buying and Selling at AON

In other AON news, General Counsel Darren Zeidel sold 1,950 shares of the business's stock in a transaction dated Friday, July 17th. The stock was sold at an average price of $372.05, for a total transaction of $725,497.50. Following the completion of the sale, the general counsel owned 13,404 shares of the company's stock, valued at approximately $4,986,958.20. The trade was a 12.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Lester Knight acquired 20,000 shares of the firm's stock in a transaction dated Wednesday, September 2nd. The stock was bought at an average cost of $327.48 per share, for a total transaction of $6,549,600.00. Following the purchase, the director directly owned 163,000 shares of the company's stock, valued at approximately $53,379,240. This trade represents a 13.99% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have sold 4,450 shares of company stock worth $1,659,242 over the last quarter. 1.00% of the stock is owned by company insiders.

Institutional Trading of AON

Several institutional investors and hedge funds have recently modified their holdings of the company. Cornerstone Financial Management LLC purchased a new stake in AON in the 4th quarter worth $37,000. SJS Investment Consulting Inc. lifted its position in shares of AON by 258.3% in the first quarter. SJS Investment Consulting Inc. now owns 129 shares of the financial services provider's stock valued at $42,000 after acquiring an additional 93 shares in the last quarter. Palladiem LLC purchased a new position in shares of AON in the fourth quarter valued at about $47,000. Cassaday & Co Wealth Management LLC bought a new position in shares of AON in the first quarter worth about $61,000. Finally, Reflection Asset Management purchased a new stake in shares of AON during the fourth quarter worth about $72,000. 86.14% of the stock is currently owned by institutional investors.

AON Company Profile

Aon plc is a global professional services firm that helps organizations manage risk, make better decisions and improve performance. Its services are organized around risk capital and human capital, combining advisory expertise, data, analytics and insurance-related solutions.

The company provides commercial risk brokerage and consulting, reinsurance brokerage, retirement and investment advisory services, health benefits consulting, talent and compensation consulting, and related technology and data products.

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