Arthur J. Gallagher & Co. (NYSE:AJG) Short Interest Up 27.7% in December

Arthur J. Gallagher & Co. (NYSE:AJG) saw a large increase in short interest in December. As of December 31st, there was short interest totalling 9,370,000 shares, an increase of 27.7% from the December 15th total of 7,340,000 shares. Based on an average daily trading volume, of 1,730,000 shares, the days-to-cover ratio is currently 5.4 days.

Arthur J. Gallagher & Co. Price Performance

AJG traded down $0.57 during midday trading on Friday, reaching $295.22. 1,261,458 shares of the company’s stock were exchanged, compared to its average volume of 2,133,369. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.06 and a quick ratio of 1.06. The stock has a market capitalization of $73.75 billion, a PE ratio of 56.23 and a beta of 0.76. The business’s 50-day moving average price is $291.99 and its 200 day moving average price is $286.85. Arthur J. Gallagher & Co. has a 1-year low of $227.08 and a 1-year high of $316.72.

Arthur J. Gallagher & Co. (NYSE:AJG) last announced its earnings results on Thursday, October 24th. The financial services provider reported $2.26 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $2.26. The company had revenue of $2.77 billion during the quarter, compared to analysts’ expectations of $2.78 billion. Arthur J. Gallagher & Co. had a net margin of 10.40% and a return on equity of 19.12%. The firm’s quarterly revenue was up 12.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.00 earnings per share. As a group, equities analysts anticipate that Arthur J. Gallagher & Co. will post 10.06 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, December 20th. Stockholders of record on Friday, December 6th were issued a dividend of $0.60 per share. The ex-dividend date was Friday, December 6th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.81%. Arthur J. Gallagher & Co.’s dividend payout ratio (DPR) is presently 45.71%.

Analyst Ratings Changes

AJG has been the topic of a number of recent analyst reports. BMO Capital Markets increased their target price on shares of Arthur J. Gallagher & Co. from $312.00 to $325.00 and gave the company an “outperform” rating in a research report on Tuesday, November 12th. Piper Sandler raised shares of Arthur J. Gallagher & Co. from a “neutral” rating to an “overweight” rating and raised their price objective for the stock from $285.00 to $315.00 in a research report on Wednesday, January 8th. Bank of America raised their target price on shares of Arthur J. Gallagher & Co. from $271.00 to $293.00 and gave the stock an “underperform” rating in a research note on Thursday, October 10th. Barclays raised their target price on shares of Arthur J. Gallagher & Co. from $300.00 to $308.00 and gave the stock an “equal weight” rating in a research note on Thursday, November 21st. Finally, Royal Bank of Canada raised their target price on shares of Arthur J. Gallagher & Co. from $310.00 to $320.00 and gave the stock an “outperform” rating in a research note on Friday, September 20th. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and six have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $304.07.

Insiders Place Their Bets

In other news, CFO Douglas K. Howell sold 7,000 shares of the firm’s stock in a transaction on Monday, October 28th. The shares were sold at an average price of $284.70, for a total value of $1,992,900.00. Following the sale, the chief financial officer now directly owns 75,963 shares in the company, valued at approximately $21,626,666.10. This trade represents a 8.44 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Christopher E. Mead sold 2,800 shares of the firm’s stock in a transaction on Monday, October 28th. The shares were sold at an average price of $287.00, for a total transaction of $803,600.00. Following the completion of the sale, the vice president now owns 14,674 shares in the company, valued at $4,211,438. The trade was a 16.02 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Arthur J. Gallagher & Co.

A number of hedge funds and other institutional investors have recently modified their holdings of AJG. Strategic Investment Solutions Inc. IL purchased a new stake in Arthur J. Gallagher & Co. in the second quarter valued at approximately $26,000. Mark Sheptoff Financial Planning LLC purchased a new stake in Arthur J. Gallagher & Co. in the second quarter valued at approximately $26,000. Rakuten Securities Inc. grew its stake in Arthur J. Gallagher & Co. by 580.0% during the third quarter. Rakuten Securities Inc. now owns 102 shares of the financial services provider’s stock worth $29,000 after buying an additional 87 shares during the period. Pin Oak Investment Advisors Inc. grew its stake in Arthur J. Gallagher & Co. by 543.8% during the third quarter. Pin Oak Investment Advisors Inc. now owns 103 shares of the financial services provider’s stock worth $28,000 after buying an additional 87 shares during the period. Finally, Quarry LP purchased a new stake in Arthur J. Gallagher & Co. during the second quarter worth approximately $29,000. 85.53% of the stock is currently owned by hedge funds and other institutional investors.

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 entities and individuals 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.