AON (NYSE:AON) Sets New 12-Month Low - Here's Why

Key Points

• Aon shares fell to a new 52-week low of $272.55, well below their 50-day and 200-day moving averages, amid a roughly 2% decline.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $397.47, despite some target-price reductions.
• Aon slightly beat quarterly EPS estimates, reporting $3.81 versus $3.80 expected, while revenue rose 2.2% year over year to $4.25 billion; the company also paid a quarterly dividend of $0.82 per share.

Aon plc (NYSE:AON - Get Free Report) hit a new 52-week low during mid-day trading on Monday. The company traded as low as $272.55 and last traded at $272.1480, with a volume of 92120 shares. The stock had previously closed at $277.99.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Piper Sandler lowered their price objective on AON from $391.00 to $349.00 and set a "neutral" rating for the company in a research report on Tuesday, September 1st. Barclays upped their target price on shares of AON from $372.00 to $382.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 7th. Cantor Fitzgerald reduced their price target on shares of AON from $445.00 to $433.00 and set an "overweight" rating on the stock in a research note on Tuesday, September 1st. TD Cowen increased their price objective on shares of AON from $416.00 to $420.00 and gave the stock a "buy" rating in a research report on Monday, September 14th. Finally, Evercore reaffirmed an "outperform" rating and issued a $423.00 price objective on shares of AON in a research note on Wednesday, September 2nd. Twelve investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, AON presently has a consensus rating of "Moderate Buy" and an average target price of $397.47.

AON Stock Down 2.0%

The firm has a market cap of $57.81 billion, a PE ratio of 15.04, a price-to-earnings-growth ratio of 1.41 and a beta of 0.66. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 1.34. The business has a 50-day moving average price of $336.73 and a two-hundred day moving average price of $330.87.

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

AON Announces Dividend

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

Insider Activity at AON

In related news, Director Lester Knight acquired 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, with a total value of $6,549,600.00. Following the completion of the acquisition, the director owned 163,000 shares in the company, valued at $53,379,240. This trade represents a 13.99% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, General Counsel Darren Zeidel sold 1,950 shares of the stock in a transaction on Friday, July 17th. The shares were sold at an average price of $372.05, for a total transaction of $725,497.50. Following the completion of the transaction, 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 4,450 shares of company stock worth $1,659,242 over the last quarter. 1.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AON

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new position in AON in the fourth quarter valued at $1,155,981,000. Focus Partners Wealth lifted its position in AON by 396.0% during the 4th quarter. Focus Partners Wealth now owns 546,204 shares of the financial services provider's stock worth $192,756,000 after acquiring an additional 436,093 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in shares of AON by 74.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 797,418 shares of the financial services provider's stock valued at $257,391,000 after purchasing an additional 340,866 shares during the last quarter. The Manufacturers Life Insurance Company raised its stake in shares of AON by 136.1% during the first quarter. The Manufacturers Life Insurance Company now owns 547,850 shares of the financial services provider's stock worth $176,835,000 after purchasing an additional 315,817 shares during the last quarter. Finally, Amundi lifted its holdings in shares of AON by 23.5% during the first quarter. Amundi now owns 1,502,890 shares of the financial services provider's stock worth $485,103,000 after purchasing an additional 285,549 shares during the period. Hedge funds and other institutional investors own 86.14% of the company's stock.

About AON

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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