Arthur J. Gallagher & Co. (NYSE:AJG – Get Free Report) shares hit a new 52-week high during mid-day trading on Friday following a better than expected earnings announcement. The stock traded as high as $221.92 and last traded at $218.47, with a volume of 204254 shares trading hands. The stock had previously closed at $217.15.
The financial services provider reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.86 by $0.04. The business had revenue of $2.44 billion for the quarter, compared to the consensus estimate of $2.36 billion. Arthur J. Gallagher & Co. had a return on equity of 18.86% and a net margin of 13.22%. The business’s revenue was up 19.5% on a year-over-year basis. During the same period in the prior year, the business earned $1.70 earnings per share.
Arthur J. Gallagher & Co. Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 15th. Shareholders of record on Friday, September 1st will be issued a dividend of $0.55 per share. The ex-dividend date is Thursday, August 31st. This represents a $2.20 annualized dividend and a yield of 1.01%. Arthur J. Gallagher & Co.’s dividend payout ratio is presently 40.82%.
Analyst Upgrades and Downgrades
Several research firms recently weighed in on AJG. Wells Fargo & Company upped their price objective on shares of Arthur J. Gallagher & Co. from $233.00 to $237.00 in a report on Friday. StockNews.com initiated coverage on shares of Arthur J. Gallagher & Co. in a research note on Thursday, May 18th. They set a “hold” rating for the company. UBS Group lifted their price target on shares of Arthur J. Gallagher & Co. from $212.00 to $220.00 in a research report on Friday, June 16th. VNET Group reissued a “maintains” rating on shares of Arthur J. Gallagher & Co. in a research note on Tuesday, May 23rd. Finally, Evercore ISI lifted their price objective on Arthur J. Gallagher & Co. from $231.00 to $233.00 in a research report on Friday, June 16th. Four research analysts have rated the stock with a hold rating, six have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $228.31.
Insiders Place Their Bets
In related news, VP Joel D. Cavaness sold 33,300 shares of the business’s stock in a transaction dated Thursday, May 4th. The shares were sold at an average price of $210.57, for a total value of $7,011,981.00. Following the transaction, the vice president now directly owns 135,178 shares of the company’s stock, valued at approximately $28,464,431.46. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In other news, VP Joel D. Cavaness sold 33,300 shares of the stock in a transaction on Thursday, May 4th. The stock was sold at an average price of $210.57, for a total transaction of $7,011,981.00. Following the completion of the transaction, the vice president now owns 135,178 shares in the company, valued at approximately $28,464,431.46. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Richard C. Cary sold 3,204 shares of the stock in a transaction dated Wednesday, May 10th. The stock was sold at an average price of $217.62, for a total transaction of $697,254.48. Following the transaction, the chief accounting officer now owns 37,285 shares of the company’s stock, valued at approximately $8,113,961.70. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 101,503 shares of company stock valued at $21,433,355. Insiders own 1.60% of the company’s stock.
Institutional Investors Weigh In On Arthur J. Gallagher & Co.
Several large investors have recently added to or reduced their stakes in AJG. AlphaMark Advisors LLC raised its position in shares of Arthur J. Gallagher & Co. by 1.2% during the 1st quarter. AlphaMark Advisors LLC now owns 4,118 shares of the financial services provider’s stock valued at $788,000 after buying an additional 49 shares in the last quarter. Clarus Wealth Advisors lifted its holdings in shares of Arthur J. Gallagher & Co. by 2.1% in the 2nd quarter. Clarus Wealth Advisors now owns 2,408 shares of the financial services provider’s stock worth $515,000 after acquiring an additional 49 shares during the last quarter. Congress Wealth Management LLC DE grew its holdings in shares of Arthur J. Gallagher & Co. by 1.7% during the 2nd quarter. Congress Wealth Management LLC DE now owns 2,972 shares of the financial services provider’s stock valued at $653,000 after purchasing an additional 51 shares during the last quarter. Profund Advisors LLC lifted its stake in Arthur J. Gallagher & Co. by 2.4% in the fourth quarter. Profund Advisors LLC now owns 2,379 shares of the financial services provider’s stock worth $449,000 after purchasing an additional 55 shares during the last quarter. Finally, Gilbert & Cook Inc. boosted its position in Arthur J. Gallagher & Co. by 1.3% during the first quarter. Gilbert & Cook Inc. now owns 4,403 shares of the financial services provider’s stock valued at $842,000 after buying an additional 55 shares during the period. Institutional investors own 85.55% of the company’s stock.
Arthur J. Gallagher & Co. Stock Performance
The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.06 and a current ratio of 1.06. The business has a 50 day moving average price of $211.82 and a two-hundred day moving average price of $201.54. The company has a market cap of $46.46 billion, a P/E ratio of 40.71, a price-to-earnings-growth ratio of 2.32 and a beta of 0.71.
Arthur J. Gallagher & Co. Company Profile
Arthur J. Gallagher & Co, together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to businesses and organizations worldwide. It operates in Brokerage and Risk Management segments. The Brokerage segment offers retail and wholesale insurance and reinsurance brokerage services; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; and acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverages to underwriting enterprises.
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