Arthur J. Gallagher & Co. (NYSE:AJG) Short Interest Up 32.6% in May

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) was the recipient of a large growth in short interest in May. As of May 15th, there was short interest totalling 3,990,000 shares, a growth of 32.6% from the April 30th total of 3,010,000 shares. Approximately 1.6% of the shares of the stock are sold short. Based on an average daily trading volume, of 1,490,000 shares, the days-to-cover ratio is presently 2.7 days.

Arthur J. Gallagher & Co. Stock Down 2.5%

Shares of NYSE AJG traded down $8.36 during midday trading on Thursday, reaching $327.99. 1,851,429 shares of the company's stock traded hands, compared to its average volume of 1,334,273. The company has a market cap of $84.00 billion, a price-to-earnings ratio of 50.30 and a beta of 0.78. The stock's 50 day simple moving average is $333.09 and its 200-day simple moving average is $316.31. The company has a quick ratio of 1.51, a current ratio of 1.51 and a debt-to-equity ratio of 0.63. Arthur J. Gallagher & Co. has a one year low of $250.72 and a one year high of $351.23.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its earnings results on Thursday, May 1st. The financial services provider reported $3.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.57 by $0.10. The business had revenue of $3.69 billion for the quarter, compared to analysts' expectations of $3.85 billion. Arthur J. Gallagher & Co. had a return on equity of 16.47% and a net margin of 12.70%. The business's revenue for the quarter was up 14.5% on a year-over-year basis. During the same quarter last year, the firm earned $3.45 EPS. On average, analysts predict that Arthur J. Gallagher & Co. will post 11.54 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, June 20th. Shareholders of record on Friday, June 6th will be paid a $0.65 dividend. The ex-dividend date is Friday, June 6th. This represents a $2.60 annualized dividend and a yield of 0.79%. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is presently 37.63%.

Insider Activity

In other news, Director David S. Johnson sold 1,000 shares of the firm's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $342.04, for a total value of $342,040.00. Following the completion of the sale, the director now owns 45,323 shares in the company, valued at approximately $15,502,278.92. This trade represents a 2.16% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Scott R. Hudson sold 7,510 shares of Arthur J. Gallagher & Co. stock in a transaction dated Friday, March 21st. The stock was sold at an average price of $333.59, for a total transaction of $2,505,260.90. Following the transaction, the vice president now directly owns 90,020 shares of the company's stock, valued at approximately $30,029,771.80. This represents a 7.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 32,510 shares of company stock worth $11,033,341. 1.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Arthur J. Gallagher & Co.

Several hedge funds have recently modified their holdings of AJG. Norges Bank purchased a new stake in Arthur J. Gallagher & Co. during the fourth quarter valued at approximately $1,421,591,000. JPMorgan Chase & Co. lifted its holdings in shares of Arthur J. Gallagher & Co. by 38.3% during the 1st quarter. JPMorgan Chase & Co. now owns 17,372,745 shares of the financial services provider's stock valued at $5,997,767,000 after purchasing an additional 4,815,007 shares during the last quarter. Vanguard Group Inc. grew its stake in Arthur J. Gallagher & Co. by 14.9% during the 4th quarter. Vanguard Group Inc. now owns 29,672,134 shares of the financial services provider's stock worth $8,422,435,000 after buying an additional 3,851,661 shares during the last quarter. Winslow Capital Management LLC acquired a new position in Arthur J. Gallagher & Co. during the 4th quarter valued at about $719,489,000. Finally, Capital World Investors raised its stake in Arthur J. Gallagher & Co. by 30.4% in the fourth quarter. Capital World Investors now owns 8,199,413 shares of the financial services provider's stock valued at $2,327,403,000 after buying an additional 1,910,471 shares during the last quarter. 85.53% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Jefferies Financial Group cut their target price on Arthur J. Gallagher & Co. from $266.00 to $265.00 and set a "hold" rating on the stock in a research note on Friday, April 11th. Wells Fargo & Company increased their target price on Arthur J. Gallagher & Co. from $370.00 to $372.00 and gave the stock an "overweight" rating in a research note on Thursday, April 10th. Barclays boosted their target price on shares of Arthur J. Gallagher & Co. from $308.00 to $346.00 and gave the company an "equal weight" rating in a research note on Friday, April 11th. Redburn Atlantic began coverage on shares of Arthur J. Gallagher & Co. in a report on Tuesday, March 25th. They set a "neutral" rating and a $352.00 price objective for the company. Finally, Keefe, Bruyette & Woods boosted their price objective on shares of Arthur J. Gallagher & Co. from $315.00 to $326.00 and gave the company a "market perform" rating in a research report on Thursday. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and five have issued a buy rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $319.36.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co engages in the provision of insurance brokerage, reinsurance brokerage, consulting, and third-party claims settlement and administration services. It operates through the following segments: Brokerage, Risk Management, and Corporate. The Brokerage segment consists of retail and wholesale insurance brokerage operations.