Arthur J. Gallagher & Co. (NYSE:AJG) Releases Earnings Results, Beats Estimates By $0.03 EPS

Arthur J. Gallagher & Co. (NYSE:AJG) released its earnings results on Thursday. The financial services provider reported $2.84 earnings per share for the quarter, beating the consensus estimate of $2.81 by $0.03, FiscalAI reports. Arthur J. Gallagher & Co. had a return on equity of 12.83% and a net margin of 10.76%.The firm had revenue of $3.95 billion for the quarter, compared to the consensus estimate of $4.01 billion.

Arthur J. Gallagher & Co. Trading Down 4.6%

AJG traded down $12.45 during trading on Thursday, hitting $256.46. 1,877,754 shares of the stock were exchanged, compared to its average volume of 2,075,455. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.06 and a current ratio of 1.06. Arthur J. Gallagher & Co. has a 1 year low of $190.75 and a 1 year high of $313.55. The firm has a 50 day simple moving average of $229.80 and a 200 day simple moving average of $224.96. The firm has a market cap of $65.88 billion, a price-to-earnings ratio of 41.50, a P/E/G ratio of 1.37 and a beta of 0.50.

Arthur J. Gallagher & Co. Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Tuesday, September 8th will be issued a $0.70 dividend. The ex-dividend date is Tuesday, September 8th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.1%. Arthur J. Gallagher & Co.’s payout ratio is presently 45.31%.

Analysts Set New Price Targets

AJG has been the subject of several recent analyst reports. Truist Financial dropped their price objective on shares of Arthur J. Gallagher & Co. from $235.00 to $225.00 and set a “hold” rating for the company in a research note on Friday, May 1st. Barclays raised their target price on shares of Arthur J. Gallagher & Co. from $275.00 to $292.00 and gave the stock an “overweight” rating in a report on Tuesday, July 7th. Wolfe Research downgraded shares of Arthur J. Gallagher & Co. from an “outperform” rating to a “peer perform” rating in a report on Thursday, July 9th. Wells Fargo & Company increased their price objective on shares of Arthur J. Gallagher & Co. from $271.00 to $299.00 and gave the stock an “overweight” rating in a research report on Thursday, July 9th. Finally, Mizuho boosted their target price on Arthur J. Gallagher & Co. from $261.00 to $287.00 and gave the company an “outperform” rating in a research report on Thursday, July 9th. Thirteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $280.35.

Insider Activity

In other news, CAO Richard C. Cary sold 3,000 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $206.00, for a total transaction of $618,000.00. Following the transaction, the chief accounting officer directly owned 47,819 shares in the company, valued at approximately $9,850,714. This trade represents a 5.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.40% of the company’s stock.

Institutional Trading of Arthur J. Gallagher & Co.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Kemnay Advisory Services Inc. purchased a new stake in shares of Arthur J. Gallagher & Co. during the 4th quarter worth $26,000. Rakuten Securities Inc. grew its stake in 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 valued at $34,000 after purchasing an additional 91 shares during the last quarter. Prosperity Bancshares Inc bought a new position in Arthur J. Gallagher & Co. in the fourth quarter worth about $42,000. Resources Management Corp CT ADV purchased a new stake in shares of Arthur J. Gallagher & Co. during the fourth quarter valued at about $85,000. Finally, DV Equities LLC bought a new stake in shares of Arthur J. Gallagher & Co. in the 4th quarter valued at about $93,000. Institutional investors own 85.53% of the company’s stock.

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.