Arthur J. Gallagher & Co. (NYSE:AJG) Trading Down 6.9% – Time to Sell?

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

Analyst Ratings Changes

Several analysts have recently weighed in on AJG shares. Needham & Company LLC set a $272.00 price objective on shares of Arthur J. Gallagher & Co. in a research report on Thursday, December 18th. Barclays dropped their price target on Arthur J. Gallagher & Co. from $250.00 to $247.00 and set an “underweight” rating for the company in a research note on Thursday, January 8th. Mizuho set a $277.00 price objective on Arthur J. Gallagher & Co. in a report on Wednesday, January 14th. Piper Sandler lowered Arthur J. Gallagher & Co. from an “overweight” rating to a “neutral” rating and cut their target price for the stock from $276.00 to $272.00 in a research note on Wednesday, January 7th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Arthur J. Gallagher & Co. in a research note on Monday, December 29th. Seven research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Arthur J. Gallagher & Co. presently has a consensus rating of “Hold” and an average price target of $290.50.

Arthur J. Gallagher & Co. Price Performance

The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.52. The business’s 50-day simple moving average is $253.68 and its 200-day simple moving average is $278.02. The stock has a market cap of $61.77 billion, a PE ratio of 35.96 and a beta of 0.67.

Arthur J. Gallagher & Co. (NYSE:AJG) last announced its quarterly earnings results on Thursday, October 30th. The financial services provider reported $2.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.51 by ($0.19). The business had revenue of $3.33 billion for the quarter, compared to analysts’ expectations of $3.34 billion. Arthur J. Gallagher & Co. had a net margin of 13.58% and a return on equity of 11.98%. The firm’s revenue for the quarter was up 20.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.26 EPS. On average, research analysts expect that Arthur J. Gallagher & Co. will post 11.54 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, December 19th. Shareholders of record on Friday, December 5th were issued a dividend of $0.65 per share. The ex-dividend date was 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 Activity at Arthur J. Gallagher & Co.

In related news, VP Christopher E. Mead sold 4,000 shares of the stock in a transaction dated Tuesday, December 23rd. The shares were sold at an average price of $258.11, for a total value of $1,032,440.00. Following the completion of the transaction, the vice president directly owned 17,327 shares in the company, 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, CFO Douglas K. Howell sold 5,000 shares of the business’s stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $258.05, for a total transaction of $1,290,250.00. Following the sale, the chief financial officer directly owned 95,777 shares in the company, valued at $24,715,254.85. The trade was a 4.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 32,100 shares of company stock valued at $8,243,865 over the last ninety days. Insiders own 1.30% of the company’s stock.

Institutional Trading of Arthur J. Gallagher & Co.

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Physician Wealth Advisors Inc. boosted its holdings in 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 acquiring an additional 87 shares in the last quarter. J.Safra Asset Management Corp boosted its stake in Arthur J. Gallagher & Co. by 209.1% in the 2nd quarter. J.Safra Asset Management Corp now owns 102 shares of the financial services provider’s stock worth $32,000 after purchasing an additional 69 shares in the last quarter. Rakuten Securities Inc. grew its position in Arthur J. Gallagher & Co. by 650.0% during the 2nd quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider’s stock valued at $34,000 after purchasing an additional 91 shares during the last quarter. Financial Life Planners purchased a new position in Arthur J. Gallagher & Co. in the third quarter worth about $39,000. Finally, Central Pacific Bank Trust Division lifted its stake in shares of Arthur J. Gallagher & Co. by 40.6% in the third quarter. Central Pacific Bank Trust Division now owns 135 shares of the financial services provider’s stock worth $42,000 after buying an additional 39 shares in the last quarter. Hedge funds and other institutional investors own 85.53% of the company’s stock.

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.