Aon plc (NYSE:AON) Given Consensus Rating of “Moderate Buy” by Analysts

Aon plc (NYSE:AON) has been assigned an average recommendation of “Moderate Buy” from the nineteen ratings firms that are presently covering the firm, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, six have given a hold rating and twelve have assigned a buy rating to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $397.4706.

A number of equities research analysts have commented on AON shares. Barclays raised their target price on shares of AON from $372.00 to $382.00 and gave the stock an “equal weight” rating in a research note on Tuesday, July 7th. Citigroup upped their price target on shares of AON from $420.00 to $435.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. TD Cowen raised their price objective on shares of AON from $416.00 to $420.00 and gave the company a “buy” rating in a research report on Monday. Keefe, Bruyette & Woods lifted their target price on shares of AON from $412.00 to $417.00 and gave the company an “outperform” rating in a research note on Tuesday, September 1st. Finally, Mizuho dropped their target price on shares of AON from $398.00 to $366.00 and set an “outperform” rating for the company in a report on Wednesday.

Insider Activity

In other AON news, Director Lester B. Knight purchased 20,000 shares of the company’s stock in a transaction on Wednesday, September 2nd. The stock was acquired at an average cost of $327.48 per share, for a total transaction of $6,549,600.00. Following the purchase, the director directly owned 163,000 shares of the company’s stock, valued at $53,379,240. This trade represents a 13.99% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, General Counsel Darren Zeidel sold 1,900 shares of the stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total transaction of $717,744.00. Following the sale, the general counsel directly owned 11,504 shares of the company’s stock, valued at approximately $4,345,751.04. This trade represents a 14.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 4,450 shares of company stock valued at $1,659,242 in the last quarter. 1.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On AON

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Norges Bank bought a new position in shares of AON during the 4th quarter valued at approximately $1,155,981,000. Focus Partners Wealth raised its holdings in AON by 396.0% during the 4th quarter. Focus Partners Wealth now owns 546,204 shares of the financial services provider’s stock valued at $192,756,000 after buying an additional 436,093 shares during the period. Arrowstreet Capital Limited Partnership lifted its position in AON by 74.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 797,418 shares of the financial services provider’s stock worth $257,391,000 after buying an additional 340,866 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in AON by 1,864.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 343,754 shares of the financial services provider’s stock worth $121,304,000 after buying an additional 326,256 shares during the period. Finally, The Manufacturers Life Insurance Company boosted its stake in AON by 136.1% during the first quarter. The Manufacturers Life Insurance Company now owns 547,850 shares of the financial services provider’s stock worth $176,835,000 after buying an additional 315,817 shares during the period. Institutional investors own 86.14% of the company’s stock.

AON Stock Performance

NYSE:AON opened at $301.02 on Friday. The company has a debt-to-equity ratio of 1.34, a quick ratio of 1.54 and a current ratio of 1.54. The stock has a 50-day simple moving average of $347.22 and a two-hundred day simple moving average of $333.42. The firm has a market capitalization of $63.85 billion, a PE ratio of 16.59, a P/E/G ratio of 1.54 and a beta of 0.66. AON has a 52-week low of $298.48 and a 52-week high of $382.34.

AON (NYSE:AON) last posted its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $3.81 EPS for the quarter, topping the consensus estimate of $3.80 by $0.01. AON had a return on equity of 42.13% and a net margin of 22.27%.The firm had revenue of $4.25 billion for the quarter, compared to the consensus estimate of $4.28 billion. During the same quarter last year, the company earned $3.49 earnings per share. The business’s revenue for the quarter was up 2.2% compared to the same quarter last year. Analysts forecast that AON will post 18.94 EPS for the current year.

AON Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Monday, August 3rd were paid a $0.82 dividend. The ex-dividend date of this dividend was Monday, August 3rd. This represents a $3.28 dividend on an annualized basis and a dividend yield of 1.1%. AON’s dividend payout ratio is 18.08%.

AON News Roundup

Here are the key news stories impacting AON this week:

• Positive Sentiment: Strong demand for acquisition financing: Aon raised $13.5 billion through a bond offering to help fund its approximately $17 billion acquisition of USI. Orders reportedly reached about $65 billion, allowing the company to secure tighter pricing than initially indicated despite challenging credit-market conditions. AON’s USI Deal Drives $13.5B Bond Offering, Draws $65B in Orders
• Positive Sentiment: Insider buying provides a confidence signal: Chairman Lester Knight purchased 20,000 AON shares for approximately $6.5 million, increasing his existing position by a meaningful amount. Investors may view the transaction as evidence of management confidence in the company’s long-term prospects. Aon Chairman Lester Knight Buys 20,000 Shares
• Positive Sentiment: Analyst remains bullish: TD Cowen reportedly expects AON shares to rise, offering a positive counterpoint to current investor concerns. AON Stock Price Expected to Rise, TD Cowen Analyst Says
• Positive Sentiment: New growth opportunities: Aon is developing surety bonds for data-center grid upgrades and launched a capability to prioritize cyber-risk improvement opportunities. These initiatives could expand its role in infrastructure and cyber-risk advisory markets. Aon Developing Surety Bonds for Data-Centre Grid Upgrades Aon Launches New Cyber-Risk Capability
• Negative Sentiment: Debt and execution risk are the key overhangs: Funding the USI acquisition with $13.5 billion of new bonds will materially increase Aon’s debt burden and interest expense. Investors may remain cautious until the company demonstrates that USI’s earnings and expected synergies justify the higher financing costs. Aon Raises $13.5 Billion From Bond Sale to Fund USI Takeover

About AON

Aon plc is a global professional services firm that helps organizations manage risk, support workforce strategies and make informed decisions. Its principal activities include commercial risk brokerage, insurance and reinsurance consulting, retirement and investment advisory services, health and benefits consulting, and data- and analytics-based business solutions.

Aon serves businesses, governments, institutional investors and individuals across a broad range of industries and geographies.