AON (NYSE:AON) Sets New 12-Month Low - Should You Sell?

Key Points

• Aon shares hit a new 52-week low, trading as low as $299 and recently down 0.7%. The stock’s price remained below its 50-day and 200-day moving averages.
• Despite the decline, analysts maintained a broadly positive outlook: Aon has a consensus “Moderate Buy” rating and an average price target of $397.47, although Wolfe Research downgraded it to “strong sell.”
• Aon slightly exceeded quarterly EPS expectations, reporting $3.81 versus the $3.80 consensus, while revenue rose 2.2% year over year to $4.25 billion. The company also pays a quarterly dividend of $0.82, representing a 1.1% yield.

Aon plc (NYSE:AON - Get Free Report) hit a new 52-week low on Wednesday . The stock traded as low as $299.00 and last traded at $301.7150, with a volume of 100442 shares. The stock had previously closed at $304.67.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on AON. Morgan Stanley lifted their price objective on shares of AON from $380.00 to $410.00 and gave the company an "overweight" rating in a report on Wednesday, August 19th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of AON in a research report on Tuesday, September 1st. Wolfe Research lowered AON from a "hold" rating to a "strong sell" rating in a report on Friday, September 11th. Mizuho set a $366.00 price objective on AON in a report on Wednesday. Finally, TD Cowen upped their target price on AON from $416.00 to $420.00 and gave the stock a "buy" rating in a report on Monday. Twelve analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $397.47.

AON Trading Down 0.7%

The firm has a market cap of $64.16 billion, a PE ratio of 16.66, a PEG ratio of 1.58 and a beta of 0.66. The company has a debt-to-equity ratio of 1.34, a current ratio of 1.54 and a quick ratio of 1.54. The stock's fifty day simple moving average is $348.34 and its 200-day simple moving average is $333.63.

AON (NYSE:AON - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.80 by $0.01. AON had a return on equity of 42.13% and a net margin of 22.27%.The firm had revenue of $4.25 billion during the quarter, compared to analysts' expectations of $4.28 billion. During the same period last year, the business posted $3.49 earnings per share. The company's revenue for the quarter was up 2.2% compared to the same quarter last year. On average, sell-side analysts forecast that Aon plc will post 18.94 earnings per share for the current year.

AON Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Monday, August 3rd were paid a $0.82 dividend. The ex-dividend date of this dividend was Monday, August 3rd. This represents a $3.28 dividend on an annualized basis and a yield of 1.1%. AON's dividend payout ratio (DPR) is currently 18.08%.

Insider Activity

In related news, Director Lester Knight purchased 20,000 shares of the firm's stock in a transaction that occurred on Wednesday, September 2nd. The shares were purchased at an average cost of $327.48 per share, with a total value of $6,549,600.00. Following the purchase, the director owned 163,000 shares of the company's stock, valued at $53,379,240. This represents a 13.99% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, General Counsel Darren Zeidel sold 1,900 shares of the business's stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $377.76, for a total value of $717,744.00. Following the sale, the general counsel owned 11,504 shares of the company's stock, valued at $4,345,751.04. The trade was a 14.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 4,450 shares of company stock worth $1,659,242. Company insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On AON

A number of institutional investors have recently bought and sold shares of the company. Cornerstone Financial Management LLC purchased a new stake in shares of AON during the 4th quarter worth approximately $37,000. SJS Investment Consulting Inc. raised its stake in AON by 258.3% during the 1st quarter. SJS Investment Consulting Inc. now owns 129 shares of the financial services provider's stock worth $42,000 after acquiring an additional 93 shares in the last quarter. Palladiem LLC purchased a new stake in AON in the fourth quarter valued at $47,000. Cassaday & Co Wealth Management LLC acquired a new position in AON in the first quarter valued at $61,000. Finally, Reflection Asset Management purchased a new position in shares of AON during the fourth quarter worth about $72,000. 86.14% of the stock is owned by hedge funds and other institutional investors.

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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