William Blair Issues Optimistic Forecast for AJG Earnings

Key Points

• William Blair has raised its Q3 2025 EPS estimates for Arthur J. Gallagher & Co. from $2.38 to $2.52, suggesting increased confidence in the company's performance.
• The company recently reported a net margin of 14.54% and a return on equity of 13.17% for the last quarter, indicating solid profitability despite missing consensus earnings expectations.
• Arthur J. Gallagher & Co. has a strong consensus rating of "Moderate Buy" with an average price target of $331.43, underscoring positive analyst sentiment towards the stock.

Arthur J. Gallagher & Co. (NYSE:AJG - Free Report) - William Blair raised their Q3 2025 EPS estimates for shares of Arthur J. Gallagher & Co. in a research report issued on Tuesday, October 14th. William Blair analyst A. Klauber now forecasts that the financial services provider will post earnings of $2.52 per share for the quarter, up from their previous estimate of $2.38. The consensus estimate for Arthur J. Gallagher & Co.'s current full-year earnings is $11.54 per share. William Blair also issued estimates for Arthur J. Gallagher & Co.'s FY2025 earnings at $11.02 EPS.

A number of other equities analysts have also recently commented on the stock. Wall Street Zen raised shares of Arthur J. Gallagher & Co. from a "sell" rating to a "hold" rating in a report on Friday, September 5th. Piper Sandler cut their target price on shares of Arthur J. Gallagher & Co. from $352.00 to $340.00 and set an "overweight" rating on the stock in a report on Thursday, October 2nd. Erste Group Bank reaffirmed a "hold" rating on shares of Arthur J. Gallagher & Co. in a report on Wednesday, July 23rd. Barclays cut their target price on shares of Arthur J. Gallagher & Co. from $346.00 to $327.00 and set an "equal weight" rating on the stock in a report on Monday, July 7th. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Arthur J. Gallagher & Co. in a report on Wednesday, October 8th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $331.43.

Arthur J. Gallagher & Co. Stock Down 5.4%

Shares of NYSE:AJG opened at $280.09 on Friday. The company has a market capitalization of $71.82 billion, a PE ratio of 39.79 and a beta of 0.73. The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 0.52. Arthur J. Gallagher & Co. has a twelve month low of $275.56 and a twelve month high of $351.23. The firm has a 50 day simple moving average of $299.73 and a 200-day simple moving average of $314.50.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The financial services provider reported $2.33 earnings per share for the quarter, missing the consensus estimate of $2.36 by ($0.03). The company had revenue of $3.18 billion for the quarter, compared to analysts' expectations of $3.20 billion. Arthur J. Gallagher & Co. had a return on equity of 13.17% and a net margin of 14.54%.The firm's quarterly revenue was up 16.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.29 EPS.

Arthur J. Gallagher & Co. Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 19th. Shareholders of record on Friday, September 5th were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend was Friday, September 5th. Arthur J. Gallagher & Co.'s payout ratio is currently 36.93%.

Insider Buying and Selling at Arthur J. Gallagher & Co.

In other Arthur J. Gallagher & Co. news, CFO Douglas K. Howell sold 8,000 shares of the business's stock in a transaction on Monday, September 22nd. The shares were sold at an average price of $299.54, for a total value of $2,396,320.00. Following the transaction, the chief financial officer directly owned 100,777 shares of the company's stock, valued at approximately $30,186,742.58. The trade was a 7.35% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Scott R. Hudson sold 12,855 shares of the business's stock in a transaction on Monday, September 8th. The shares were sold at an average price of $297.60, for a total transaction of $3,825,648.00. Following the completion of the transaction, the vice president directly owned 85,920 shares in the company, valued at $25,569,792. This represents a 13.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 29,855 shares of company stock worth $8,916,928 over the last three months. 1.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Arthur J. Gallagher & Co.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. HWG Holdings LP acquired a new stake in shares of Arthur J. Gallagher & Co. in the first quarter valued at about $25,000. AlphaQuest LLC acquired a new stake in shares of Arthur J. Gallagher & Co. in the first quarter valued at about $33,000. Saudi Central Bank acquired a new stake in shares of Arthur J. Gallagher & Co. in the first quarter valued at about $34,000. J.Safra Asset Management Corp lifted its stake in shares of Arthur J. Gallagher & Co. by 209.1% in the second quarter. J.Safra Asset Management Corp now owns 102 shares of the financial services provider's stock valued at $32,000 after purchasing an additional 69 shares during the period. Finally, Rakuten Securities Inc. boosted its position in shares of 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 buying an additional 91 shares in the last quarter. Institutional investors and hedge funds own 85.53% of the company's stock.

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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