Royal Bank Of Canada Forecasts Strong Price Appreciation for Arthur J. Gallagher & Co. (NYSE:AJG) Stock

Arthur J. Gallagher & Co. (NYSE:AJG) had its price objective raised by analysts at Royal Bank Of Canada from $300.00 to $310.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has an “outperform” rating on the financial services provider’s stock. Royal Bank Of Canada’s target price would indicate a potential upside of 23.10% from the company’s current price.

A number of other brokerages have also weighed in on AJG. Mizuho upped their price objective on Arthur J. Gallagher & Co. from $287.00 to $300.00 and gave the stock an “outperform” rating in a report on Friday. Morgan Stanley upped their price target on shares of Arthur J. Gallagher & Co. from $240.00 to $255.00 and gave the stock an “overweight” rating in a research note on Monday, July 6th. Cantor Fitzgerald upped their price target on Arthur J. Gallagher & Co. from $285.00 to $300.00 and gave the stock a “neutral” rating in a report on Thursday, July 9th. Citigroup upgraded Arthur J. Gallagher & Co. from a “neutral” rating to a “buy” rating and cut their price objective for the stock from $280.00 to $250.00 in a report on Wednesday, May 6th. Finally, UBS Group upped their price target on Arthur J. Gallagher & Co. from $250.00 to $291.00 and gave the stock a “buy” rating in a report on Wednesday, July 8th. Thirteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Arthur J. Gallagher & Co. currently has an average rating of “Moderate Buy” and a consensus price target of $285.29.

Arthur J. Gallagher & Co. Stock Performance

Shares of AJG stock traded down $4.63 during midday trading on Friday, hitting $251.83. The company had a trading volume of 687,304 shares, compared to its average volume of 2,065,871. The stock has a market cap of $64.70 billion, a price-to-earnings ratio of 40.78, a PEG ratio of 1.39 and a beta of 0.50. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.06 and a quick ratio of 1.06. The company’s 50 day simple moving average is $230.78 and its 200 day simple moving average is $224.91. Arthur J. Gallagher & Co. has a 52-week low of $190.75 and a 52-week high of $313.55.

Arthur J. Gallagher & Co. (NYSE:AJG) last issued its quarterly 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. Arthur J. Gallagher & Co. had a net margin of 10.76% and a return on equity of 12.83%. The business had revenue of $3.95 billion for the quarter, compared to analyst estimates of $4.01 billion. During the same period in the previous year, the business posted $2.33 earnings per share. The business’s revenue was up 24.3% compared to the same quarter last year. Research analysts anticipate that Arthur J. Gallagher & Co. will post 13.22 earnings per share for the current fiscal year.

Insider Buying and Selling at Arthur J. Gallagher & Co.

In related news, CAO Richard C. Cary sold 3,000 shares of Arthur J. Gallagher & Co. stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $206.00, for a total value of $618,000.00. Following the completion of the transaction, the chief accounting officer directly owned 47,819 shares of the company’s stock, valued at $9,850,714. The trade was a 5.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 1.40% of the company’s stock.

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

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Kemnay Advisory Services Inc. acquired a new position in Arthur J. Gallagher & Co. during the 4th quarter worth $26,000. Rakuten Securities Inc. lifted its stake in shares of Arthur J. Gallagher & Co. by 650.0% during the second quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider’s stock valued at $34,000 after acquiring an additional 91 shares during the period. Axiom Investment Management LLC bought a new position in Arthur J. Gallagher & Co. in the first quarter valued at about $28,000. MV Capital Management Inc. bought a new stake in Arthur J. Gallagher & Co. during the 4th quarter worth about $34,000. Finally, Cassaday & Co Wealth Management LLC acquired a new stake in shares of Arthur J. Gallagher & Co. during the 1st quarter worth approximately $29,000. Institutional investors and hedge funds own 85.53% of the company’s stock.

Key Arthur J. Gallagher & Co. News

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

• Positive Sentiment: Adjusted earnings of $2.84 per share matched or slightly exceeded consensus expectations, while revenue rose approximately 24% year over year to about $3.95 billion. Combined Brokerage and Risk Management revenue also increased 24%, supported by 6% organic growth and acquisitions. AJG Q2 Earnings Meet Estimates, Revenues Miss on Higher Expenses
• Positive Sentiment: Analysts raised their price targets after the report. Truist lifted its target to $265 from $225 while maintaining a Hold rating, and Keefe, Bruyette & Woods raised its target to $271 from $261 with a Market Perform rating. The revisions indicate improved earnings expectations, although neither firm currently recommends buying the shares. Arthur J. Gallagher Analysts Boost Their Forecasts After Q2 Earnings
• Neutral Sentiment: Gallagher repurchased roughly 900,000 shares for approximately $170 million during the quarter and declared a regular quarterly dividend of $0.70 per share, offering ongoing shareholder returns but limited near-term support for the stock.
• Negative Sentiment: Revenue came in below the roughly $4.01 billion analyst estimate, with higher expenses and lower interest income weighing on results. Reported net income declined to $324 million from $368 million a year earlier, while diluted GAAP EPS fell to $1.25 from $1.40, despite the stronger adjusted EPS figure. Arthur J. Gallagher Q2 Revenue Rises to $3.96 Billion
• Negative Sentiment: Investors had already been concerned that acquisitions were masking slower underlying growth across the insurance-brokerage sector. Gallagher’s 6% organic growth was solid, but the revenue miss and expense pressure appear to have overshadowed the headline growth and earnings performance.

About Arthur J. Gallagher & Co.

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.