Arthur J. Gallagher & Co. (NYSE:AJG) Reaches New 1-Year Low – What’s Next?

by · The Cerbat Gem

Shares of Arthur J. Gallagher & Co. (NYSE:AJG – Get Free Report) hit a new 52-week low during trading on Friday . The stock traded as low as $238.65 and last traded at $239.71, with a volume of 591467 shares changing hands. The stock had previously closed at $245.41.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on AJG shares. Wolfe Research began coverage on shares of Arthur J. Gallagher & Co. in a report on Thursday, November 20th. They issued an “outperform” rating and a $291.00 price target on the stock. Keefe, Bruyette & Woods decreased their price target on shares of Arthur J. Gallagher & Co. from $315.00 to $275.00 and set a “market perform” rating for the company in a research note on Friday, October 31st. Cowen reissued a “buy” rating on shares of Arthur J. Gallagher & Co. in a report on Friday, October 31st. The Goldman Sachs Group dropped their price target on Arthur J. Gallagher & Co. from $361.00 to $315.00 and set a “buy” rating on the stock in a research report on Friday, October 31st. Finally, Citigroup decreased their price objective on Arthur J. Gallagher & Co. from $330.00 to $277.00 and set a “neutral” rating for the company in a report on Monday, November 3rd. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $314.87.

Read Our Latest Stock Analysis on Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co. Stock Down 2.2%

The stock has a market capitalization of $61.62 billion, a P/E ratio of 35.83 and a beta of 0.69. The stock has a 50 day moving average price of $271.24 and a 200-day moving average price of $296.80. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.06 and a quick ratio of 1.06.

Arthur J. Gallagher & Co. (NYSE:AJG – Get Free Report) last issued its quarterly earnings data on Thursday, October 30th. The financial services provider reported $2.32 EPS for the quarter, missing the consensus estimate of $2.51 by ($0.19). Arthur J. Gallagher & Co. had a net margin of 13.58% and a return on equity of 11.98%. The firm had revenue of $3.33 billion for the quarter, compared to the consensus estimate of $3.34 billion. During the same period last year, the company posted $2.26 earnings per share. The business’s revenue was up 20.2% on a year-over-year basis. As a group, research analysts expect that Arthur J. Gallagher & Co. will post 11.54 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, December 19th. Shareholders of record on Friday, December 5th will be issued a dividend of $0.65 per share. The ex-dividend date is Friday, December 5th. This represents a $2.60 dividend on an annualized basis and a dividend yield of 1.1%. Arthur J. Gallagher & Co.’s dividend payout ratio is 38.86%.

Insider Transactions at Arthur J. Gallagher & Co.

In related news, CAO Richard C. Cary sold 6,000 shares of the stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $261.00, for a total transaction of $1,566,000.00. Following the sale, the chief accounting officer directly owned 50,668 shares of the company’s stock, valued at approximately $13,224,348. This represents a 10.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Michael Robert Pesch bought 4,000 shares of the firm’s stock in a transaction on Monday, November 3rd. The stock was purchased at an average cost of $247.12 per share, with a total value of $988,480.00. Following the completion of the acquisition, the vice president directly owned 41,849 shares of the company’s stock, valued at approximately $10,341,724.88. The trade was a 10.57% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders sold 37,105 shares of company stock worth $10,796,353. 1.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Physician Wealth Advisors Inc. boosted its holdings in shares of Arthur J. Gallagher & Co. by 870.0% in the third quarter. Physician Wealth Advisors Inc. now owns 97 shares of the financial services provider’s stock worth $30,000 after buying an additional 87 shares during the last quarter. J.Safra Asset Management Corp grew its stake in Arthur J. Gallagher & Co. by 209.1% during the second quarter. J.Safra Asset Management Corp now owns 102 shares of the financial services provider’s stock valued at $32,000 after acquiring an additional 69 shares in the last quarter. AlphaQuest LLC purchased a new stake in Arthur J. Gallagher & Co. in the 1st quarter worth $33,000. Saudi Central Bank purchased a new position in shares of Arthur J. Gallagher & Co. during the first quarter valued at about $34,000. Finally, Rakuten Securities Inc. lifted its position in shares of Arthur J. Gallagher & Co. by 650.0% in the second quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider’s stock worth $34,000 after buying an additional 91 shares in the last quarter. 85.53% of the stock is owned by institutional investors.

Arthur J. Gallagher & Co. Company Profile

(Get Free Report)

Arthur J. Gallagher & Co engages in the provision of insurance brokerage, reinsurance brokerage, consulting, and third-party claims settlement and administration services. It operates through the following segments: Brokerage, Risk Management, and Corporate. The Brokerage segment consists of retail and wholesale insurance brokerage operations.

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