Arthur J. Gallagher & Co. (NYSE:AJG) Stock Price Down 6.9% – Here’s Why

Arthur J. Gallagher & Co. (NYSE:AJG)’s share price traded down 6.9% during trading on Tuesday . The stock traded as low as $241.97 and last traded at $237.8710. 384,961 shares changed hands during mid-day trading, a decline of 79% from the average session volume of 1,837,751 shares. The stock had previously closed at $255.41.

Key Arthur J. Gallagher & Co. News

Here are the key news stories impacting Arthur J. Gallagher & Co. this week:

• Positive Sentiment: Board raised the quarterly cash dividend to $0.70 (7.7% increase), supporting income investors and signaling confidence in cash generation. Arthur J. Gallagher & Co. Increases Cash Dividend to $0.70 per Share
• Positive Sentiment: Adjusted profit rose strongly (Reuters: +24.5% in the fourth quarter) driven by commissions and fees, indicating healthy demand and margin drivers that investors favor. Arthur J Gallagher’s quarterly profit rises on fees, commission growth
• Positive Sentiment: Some outlets and market reactions framed the report as a beat, with shares described as jumping after the results — supporting short-term bullish momentum. Arthur J. Gallagher shares jump after beating Q4 expectations
• Neutral Sentiment: Reported EPS was $2.38; some services (Zacks) treated it as a beat versus their $2.35 consensus, showing year-over-year improvement from $2.13. This supports earnings momentum but depends on which consensus you reference. Arthur J. Gallagher (AJG) Q4 Earnings and Revenues Beat Estimates
• Neutral Sentiment: Company released full-quarter and FY-2025 results and hosted a conference call — useful for investors wanting management commentary on outlook, inorganic growth and expense trends. Arthur J. Gallagher & Co. Announces Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Other reports show the quarter missed some street expectations: EPS was slightly below certain consensus figures (e.g., $2.42) and revenue came in below estimates (~$3.56B vs. ~$3.61B), which tempers the upbeat adjusted-profit headlines. Arthur J. Gallagher & Co. Q4 results (MarketBeat) Arthur J Gallagher earnings missed by $1.77, revenue fell short of estimates

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Cantor Fitzgerald downgraded shares of Arthur J. Gallagher & Co. from an “overweight” rating to a “neutral” rating and lowered their price objective for the stock from $344.00 to $282.00 in a research note on Wednesday, January 14th. Keefe, Bruyette & Woods lifted their price target on Arthur J. Gallagher & Co. from $272.00 to $279.00 and gave the stock a “market perform” rating in a research report on Tuesday, January 6th. Weiss Ratings reissued a “hold (c+)” rating on shares of Arthur J. Gallagher & Co. in a report on Monday, December 29th. The Goldman Sachs Group restated a “buy” rating and issued a $292.00 price objective on shares of Arthur J. Gallagher & Co. in a research note on Wednesday, January 7th. Finally, Piper Sandler lowered Arthur J. Gallagher & Co. from an “overweight” rating to a “neutral” rating and dropped their target price for the company from $276.00 to $272.00 in a research report on Wednesday, January 7th. Seven analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $290.50.

Arthur J. Gallagher & Co. Price Performance

The stock’s 50-day simple moving average is $253.20 and its two-hundred day simple moving average is $277.07. The company has a market capitalization of $63.08 billion, a price-to-earnings ratio of 36.71, a PEG ratio of 1.31 and a beta of 0.67. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.52.

Arthur J. Gallagher & Co. (NYSE:AJG) last issued its quarterly earnings results on Thursday, January 29th. The financial services provider reported $2.38 earnings per share for the quarter, missing analysts’ consensus estimates of $2.42 by ($0.04). The company had revenue of $3.57 billion during the quarter, compared to analysts’ expectations of $3.61 billion. Arthur J. Gallagher & Co. had a net margin of 13.58% and a return on equity of 11.98%. Equities research analysts predict that Arthur J. Gallagher & Co. will post 11.54 earnings per share for the current year.

Arthur J. Gallagher & Co. Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Friday, March 6th will be paid a $0.70 dividend. This is a positive change from Arthur J. Gallagher & Co.’s previous quarterly dividend of $0.65. The ex-dividend date of this dividend is Friday, March 6th. This represents a $2.80 dividend on an annualized basis and a yield of 1.1%. Arthur J. Gallagher & Co.’s dividend payout ratio is 38.86%.

Insider Transactions at Arthur J. Gallagher & Co.

In other Arthur J. Gallagher & Co. news, VP Christopher E. Mead sold 4,000 shares of the firm’s stock in a transaction on Tuesday, December 23rd. The stock was sold at an average price of $258.11, for a total value of $1,032,440.00. Following the completion of the sale, the vice president directly owned 17,327 shares of the company’s stock, valued at $4,472,271.97. This trade represents a 18.76% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Richard C. Cary sold 6,000 shares of the stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $261.00, for a total value of $1,566,000.00. Following the completion of the transaction, the chief accounting officer owned 50,668 shares of the company’s stock, valued at $13,224,348. The trade was a 10.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 32,100 shares of company stock valued at $8,243,865. 1.60% of the stock is currently owned by company insiders.

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

Several institutional investors have recently modified their holdings of the company. Factory Mutual Insurance Co. grew its holdings in Arthur J. Gallagher & Co. by 107.1% in the second quarter. Factory Mutual Insurance Co. now owns 14,500 shares of the financial services provider’s stock valued at $4,642,000 after purchasing an additional 7,500 shares during the period. Fairfield Financial Advisors LTD boosted its position in Arthur J. Gallagher & Co. by 21.4% during the second quarter. Fairfield Financial Advisors LTD now owns 9,961 shares of the financial services provider’s stock worth $3,189,000 after acquiring an additional 1,758 shares during the last quarter. Petra Financial Advisors Inc. purchased a new stake in shares of Arthur J. Gallagher & Co. in the second quarter valued at approximately $812,000. Boston Partners raised its holdings in shares of Arthur J. Gallagher & Co. by 0.4% during the 2nd quarter. Boston Partners now owns 735,759 shares of the financial services provider’s stock worth $234,226,000 after acquiring an additional 2,806 shares during the period. Finally, Winslow Capital Management LLC raised its stake in Arthur J. Gallagher & Co. by 0.6% during the second quarter. Winslow Capital Management LLC now owns 828,466 shares of the financial services provider’s stock worth $265,209,000 after purchasing an additional 4,844 shares during the period. 85.53% of the stock is owned by hedge funds and other institutional investors.

Arthur J. Gallagher & Co. Company Profile

Arthur J. Gallagher & Co is a global insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois. Founded in 1927 by Arthur J. Gallagher, the company has grown from a regional broker into an international professional services organization that arranges insurance, provides consulting and designs risk-transfer solutions for commercial, industrial, public sector and individual clients.

The company’s core activities include property and casualty insurance brokerage, employee benefits consulting and administration, and a range of risk management services.