AON (NYSE:AON) Shares Gap Down – Time to Sell?

Aon plc (NYSE:AON) gapped down prior to trading on Monday . The stock had previously closed at $355.40, but opened at $340.00. AON shares last traded at $332.1210, with a volume of 133,063 shares changing hands.

AON News Roundup

Here are the key news stories impacting AON this week:

• Positive Sentiment: The acquisition would create a leading U.S. middle-market insurance brokerage platform, building on Aon’s 2024 purchase of NFP and expanding its reach among small and midsize businesses. It also increases exposure to the fast-growing excess and surplus (E&S) insurance market. Aon to acquire USI to establish the premier U.S. middle-market platform
• Positive Sentiment: Aon expects revenue and cost synergies to generate approximately $395 million in annual run-rate adjusted EBITDA, with the deal expected to become accretive to adjusted earnings per share in 2028. USI CEO Mike Sicard will become Aon’s president and global CEO of the middle-market business, supporting integration and continuity. Aon CEO discusses USI acquisition
• Neutral Sentiment: The transaction is expected to close in the fourth quarter, but remains subject to regulatory approvals. Aon plans to finance the purchase with new debt, making the deal’s timing and financing structure important factors for investors. Aon to buy USI in $17 billion deal
• Negative Sentiment: The large all-debt-funded purchase raises concerns about leverage, integration costs and the price paid for USI. Because earnings accretion is not expected until 2028, investors may be discounting the near-term pressure from financing costs and execution risk. Aon close to acquiring USI from KKR

Analysts Set New Price Targets

AON has been the topic of a number of research analyst reports. Wells Fargo & Company boosted their price target on shares of AON from $406.00 to $419.00 and gave the company an “overweight” rating in a research note on Thursday, July 30th. JPMorgan Chase & Co. lifted their price objective on AON from $396.00 to $412.00 and gave the company an “overweight” rating in a research note on Monday, July 13th. Roth Capital reissued a “buy” rating and set a $420.00 target price on shares of AON in a research note on Friday, July 31st. Weiss Ratings upgraded AON from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, August 19th. Finally, Keefe, Bruyette & Woods lifted their target price on AON from $400.00 to $412.00 and gave the company an “outperform” rating in a research report on Tuesday, August 4th. Twelve research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, AON presently has a consensus rating of “Moderate Buy” and a consensus price target of $412.62.

AON Stock Performance

The stock has a fifty day moving average of $353.13 and a 200-day moving average of $333.94. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 1.34. The stock has a market capitalization of $70.15 billion, a PE ratio of 18.23, a price-to-earnings-growth ratio of 1.83 and a beta of 0.69.

AON (NYSE:AON) last posted its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.80 by $0.01. AON had a return on equity of 42.13% and a net margin of 22.27%.The company had revenue of $4.25 billion for the quarter, compared to analyst estimates of $4.28 billion. During the same quarter last year, the company earned $3.49 EPS. AON’s revenue for the quarter was up 2.2% compared to the same quarter last year. Equities analysts anticipate that Aon plc will post 19.06 earnings per share for the current fiscal year.

AON Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Monday, August 3rd were issued a dividend of $0.82 per share. This represents a $3.28 annualized dividend and a yield of 1.0%. The ex-dividend date was Monday, August 3rd. AON’s payout ratio is 18.08%.

Insider Activity at AON

In other news, General Counsel Darren Zeidel sold 1,900 shares of the firm’s stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total value of $717,744.00. Following the sale, the general counsel directly owned 11,504 shares in the company, valued at approximately $4,345,751.04. This trade represents a 14.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Over the last quarter, insiders have sold 4,450 shares of company stock valued at $1,659,242. Corporate insiders own 1.00% of the company’s stock.

Institutional Trading of AON

Hedge funds and other institutional investors have recently bought and sold shares of the business. Corient Private Wealth LP boosted its position in shares of AON by 80.0% during the 2nd quarter. Corient Private Wealth LP now owns 73,158 shares of the financial services provider’s stock worth $24,266,000 after acquiring an additional 32,505 shares in the last quarter. Groupe la Francaise acquired a new stake in shares of AON during the 2nd quarter worth about $108,000. CYBER HORNET ETFs LLC lifted its stake in AON by 4,903.4% during the second quarter. CYBER HORNET ETFs LLC now owns 29,470 shares of the financial services provider’s stock worth $9,775,000 after purchasing an additional 28,881 shares during the last quarter. California State Teachers Retirement System boosted its holdings in AON by 32,835.5% in the second quarter. California State Teachers Retirement System now owns 101,761,829 shares of the financial services provider’s stock valued at $33,753,381,000 after purchasing an additional 101,452,856 shares in the last quarter. Finally, Ameritas Advisory Services LLC purchased a new position in AON in the second quarter valued at approximately $220,000. 86.14% of the stock is currently owned by institutional investors and hedge funds.

About AON

Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.

In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.