Arthur J. Gallagher & Co. (NYSE:AJG) Stock Rated “Moderate Buy” by Sell-Side Brokerages

Shares of Arthur J. Gallagher & Co. (NYSE:AJG) have earned an average recommendation of “Moderate Buy” from the nineteen analysts that are presently covering the stock, MarketBeat reports. Five equities research analysts have rated the stock with a hold recommendation and fourteen have given a buy recommendation to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $288.17.

A number of equities research analysts have commented on the company. Wells Fargo & Company lowered their target price on Arthur J. Gallagher & Co. from $296.00 to $291.00 and set an “overweight” rating on the stock in a report on Thursday, September 24th. Citigroup increased their price objective on Arthur J. Gallagher & Co. from $250.00 to $285.00 and gave the company a “buy” rating in a research note on Tuesday, August 4th. Mizuho dropped their price objective on Arthur J. Gallagher & Co. from $300.00 to $292.00 and set an “outperform” rating for the company in a research report on Wednesday, September 16th. Barclays raised their price target on shares of Arthur J. Gallagher & Co. from $275.00 to $292.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 7th. Finally, Jefferies Financial Group raised shares of Arthur J. Gallagher & Co. from a “hold” rating to a “buy” rating and boosted their price objective for the company from $235.00 to $265.00 in a research report on Thursday, June 11th.

Arthur J. Gallagher & Co. Stock Performance

AJG opened at $226.17 on Friday. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.05 and a quick ratio of 1.05. The stock has a market cap of $57.97 billion, a P/E ratio of 37.51, a P/E/G ratio of 1.41 and a beta of 0.55. Arthur J. Gallagher & Co. has a 1-year low of $190.75 and a 1-year high of $313.55. The stock’s 50 day simple moving average is $250.01 and its 200 day simple moving average is $230.49.

Arthur J. Gallagher & Co. (NYSE:AJG) last announced its earnings results on Thursday, July 30th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.81 by $0.03. The company had revenue of $3.95 billion during the quarter, compared to analysts’ expectations of $4.01 billion. Arthur J. Gallagher & Co. had a net margin of 9.96% and a return on equity of 13.28%. The firm’s quarterly revenue was up 24.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.33 earnings per share. As a group, equities analysts anticipate that Arthur J. Gallagher & Co. will post 13.27 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Tuesday, September 8th were given a dividend of $0.70 per share. The ex-dividend date of this dividend was Tuesday, September 8th. This represents a $2.80 annualized dividend and a yield of 1.2%. Arthur J. Gallagher & Co.’s dividend payout ratio is 46.43%.

Insider Activity at Arthur J. Gallagher & Co.

In related news, General Counsel Walter D. Bay sold 12,000 shares of the stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $270.08, for a total transaction of $3,240,960.00. Following the completion of the sale, the general counsel owned 71,292 shares of the company’s stock, valued at approximately $19,254,543.36. This represents a 14.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Richard C. Cary sold 1,000 shares of the firm’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $252.86, for a total transaction of $252,860.00. Following the completion of the transaction, the chief accounting officer directly owned 46,819 shares in the company, valued at approximately $11,838,652.34. This represents a 2.09% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 28,500 shares of company stock valued at $7,562,950 over the last quarter. 1.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Burkett Financial Services LLC acquired a new position in shares of Arthur J. Gallagher & Co. in the third quarter worth $60,000. QRG Capital Management Inc. boosted its holdings in Arthur J. Gallagher & Co. by 19.2% in the second quarter. QRG Capital Management Inc. now owns 6,497 shares of the financial services provider’s stock worth $1,491,000 after purchasing an additional 1,046 shares in the last quarter. Rench Wealth Management Inc. increased its position in Arthur J. Gallagher & Co. by 1.1% during the second quarter. Rench Wealth Management Inc. now owns 52,366 shares of the financial services provider’s stock worth $12,022,000 after buying an additional 594 shares during the last quarter. Sequoia Financial Advisors LLC raised its holdings in Arthur J. Gallagher & Co. by 7.1% during the second quarter. Sequoia Financial Advisors LLC now owns 149,799 shares of the financial services provider’s stock valued at $34,389,000 after buying an additional 9,966 shares in the last quarter. Finally, Tidal Investments LLC lifted its position in shares of Arthur J. Gallagher & Co. by 303.7% in the second quarter. Tidal Investments LLC now owns 638,601 shares of the financial services provider’s stock worth $146,604,000 after buying an additional 480,413 shares during the last quarter. 85.53% of the stock is owned by institutional investors and hedge funds.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co is a global insurance brokerage, risk management and consulting company headquartered in Rolling Meadows, Illinois. The company helps businesses, public entities and individuals identify, manage and transfer risk through insurance brokerage, employee benefits consulting, risk management and related advisory services.

Gallagher operates through several businesses, including retail insurance brokerage, wholesale brokerage and reinsurance brokerage. Its Gallagher Re business provides reinsurance broking and advisory services, while Gallagher Bassett provides third-party claims administration and related risk management services.