Short Interest in Arthur J. Gallagher & Co. (NYSE:AJG) Expands By 51.4%

Key Points

• Short interest in Arthur J. Gallagher & Co. rose by 51.4%, totaling 3,710,000 shares as of August 15th, indicating increased bearish sentiment among investors.
• Analysts have set a consensus rating of "Hold" for the stock, with an average price target of $333.13, reflecting mixed views on the company's outlook.
• The company recently declared a $0.65 quarterly dividend, representing an annual yield of 0.9%, with a payout ratio of 36.93%.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) saw a large growth in short interest in August. As of August 15th, there was short interest totaling 3,710,000 shares, agrowthof51.4% from the July 31st total of 2,450,000 shares. Based on an average daily trading volume, of 1,470,000 shares, the days-to-cover ratio is currently 2.5 days. Based on an average daily trading volume, of 1,470,000 shares, the days-to-cover ratio is currently 2.5 days.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. HWG Holdings LP purchased a new position in Arthur J. Gallagher & Co. in the 1st quarter worth approximately $25,000. J.Safra Asset Management Corp lifted its holdings in Arthur J. Gallagher & Co. by 209.1% in the 2nd quarter. J.Safra Asset Management Corp now owns 102 shares of the financial services provider's stock worth $32,000 after purchasing an additional 69 shares in the last quarter. AlphaQuest LLC purchased a new position in Arthur J. Gallagher & Co. in the 1st quarter worth approximately $33,000. Saudi Central Bank purchased a new position in Arthur J. Gallagher & Co. in the 1st quarter worth approximately $34,000. Finally, Rakuten Securities Inc. lifted its holdings in Arthur J. Gallagher & Co. by 650.0% in the 2nd quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider's stock worth $34,000 after purchasing an additional 91 shares in 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 firms have issued reports on AJG. Wall Street Zen upgraded Arthur J. Gallagher & Co. from a "sell" rating to a "hold" rating in a research note on Friday. Piper Sandler boosted their price target on Arthur J. Gallagher & Co. from $352.00 to $372.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. The Goldman Sachs Group began coverage on Arthur J. Gallagher & Co. in a research note on Wednesday. They set a "buy" rating and a $344.00 price target for the company. UBS Group cut their price target on Arthur J. Gallagher & Co. from $345.00 to $322.00 and set a "neutral" rating for the company in a research note on Monday, August 4th. Finally, Keefe, Bruyette & Woods boosted their price target on Arthur J. Gallagher & Co. from $326.00 to $330.00 and gave the company a "market perform" rating in a research note on Wednesday, July 9th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Arthur J. Gallagher & Co. presently has a consensus rating of "Hold" and an average target price of $333.13.

Arthur J. Gallagher & Co. Stock Performance

Shares of AJG stock traded down $1.21 during trading hours on Friday, reaching $299.01. 1,217,177 shares of the company traded hands, compared to its average volume of 1,333,918. Arthur J. Gallagher & Co. has a 12-month low of $274.25 and a 12-month high of $351.23. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.36 and a quick ratio of 1.36. The company has a market cap of $76.67 billion, a P/E ratio of 42.47 and a beta of 0.72. The firm has a 50-day moving average price of $302.82 and a 200 day moving average price of $320.72.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The financial services provider reported $2.33 earnings per share for the quarter, missing analysts' consensus estimates of $2.36 by ($0.03). Arthur J. Gallagher & Co. had a net margin of 14.54% and a return on equity of 13.17%. The company had revenue of $3.18 billion for the quarter, compared to analysts' expectations of $3.20 billion. During the same period in the previous year, the firm earned $2.29 earnings per share. The firm's quarterly revenue was up 16.0% on a year-over-year basis. As a group, sell-side analysts predict that Arthur J. Gallagher & Co. will post 11.54 earnings per share for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 19th. Investors of record on Friday, September 5th will be issued a $0.65 dividend. The ex-dividend date of this dividend is Friday, September 5th. This represents a $2.60 dividend on an annualized basis and a yield of 0.9%. Arthur J. Gallagher & Co.'s payout ratio is currently 36.93%.

Arthur J. Gallagher & Co. Company Profile

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.

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