AON (NYSE:AON) Sets New 1-Year High After Earnings Beat

Aon plc (NYSE:AON)’s stock price reached a new 52-week high during mid-day trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $367.50 and last traded at $367.50, with a volume of 1402 shares changing hands. The stock had previously closed at $356.85.

The financial services provider reported $2.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.45 by $0.27. The company had revenue of $3.72 billion for the quarter, compared to analysts’ expectations of $3.70 billion. AON had a return on equity of 252.81% and a net margin of 18.00%.

AON Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 15th. Shareholders of record on Friday, November 1st will be issued a $0.675 dividend. This represents a $2.70 dividend on an annualized basis and a yield of 0.72%. The ex-dividend date is Friday, November 1st. AON’s dividend payout ratio (DPR) is currently 21.58%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on AON shares. JPMorgan Chase & Co. raised their price objective on shares of AON from $353.00 to $379.00 and gave the company an “overweight” rating in a research note on Thursday, July 11th. Bank of America lifted their price target on shares of AON from $345.00 to $375.00 and gave the company an “underperform” rating in a research report on Thursday, October 10th. Wells Fargo & Company upped their price target on AON from $300.00 to $315.00 and gave the stock an “underweight” rating in a report on Thursday, October 10th. Keefe, Bruyette & Woods raised AON from an “underperform” rating to an “outperform” rating and lifted their price objective for the stock from $313.00 to $380.00 in a report on Tuesday, July 30th. Finally, Morgan Stanley dropped their price target on AON from $300.00 to $296.00 and set an “equal weight” rating for the company in a research report on Wednesday, July 10th. Two research analysts have rated the stock with a sell rating, ten have given a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $349.69.

Institutional Trading of AON

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. increased its stake in shares of AON by 0.4% during the 1st quarter. Vanguard Group Inc. now owns 17,661,672 shares of the financial services provider’s stock valued at $5,894,053,000 after acquiring an additional 64,500 shares during the last quarter. Massachusetts Financial Services Co. MA raised its stake in AON by 2.5% during the second quarter. Massachusetts Financial Services Co. MA now owns 12,552,569 shares of the financial services provider’s stock worth $3,685,183,000 after purchasing an additional 309,702 shares during the period. Mawer Investment Management Ltd. boosted its holdings in shares of AON by 1.2% in the 2nd quarter. Mawer Investment Management Ltd. now owns 4,405,780 shares of the financial services provider’s stock valued at $1,293,449,000 after purchasing an additional 52,099 shares during the last quarter. Sustainable Growth Advisers LP grew its stake in shares of AON by 4.7% during the 1st quarter. Sustainable Growth Advisers LP now owns 2,805,199 shares of the financial services provider’s stock valued at $936,151,000 after buying an additional 127,173 shares during the period. Finally, Independent Franchise Partners LLP increased its holdings in shares of AON by 2.1% during the 2nd quarter. Independent Franchise Partners LLP now owns 2,409,530 shares of the financial services provider’s stock worth $707,390,000 after buying an additional 49,161 shares during the last quarter. 86.14% of the stock is owned by hedge funds and other institutional investors.

AON Stock Up 5.2 %

The firm has a 50-day moving average of $349.01 and a two-hundred day moving average of $316.67. The company has a current ratio of 2.42, a quick ratio of 2.42 and a debt-to-equity ratio of 2.92. The firm has a market capitalization of $81.56 billion, a PE ratio of 30.01, a price-to-earnings-growth ratio of 2.31 and a beta of 0.92.

AON Company Profile

Aon plc, a professional services firm, provides a range of risk and human capital solutions worldwide. It offers commercial risk solutions, including retail brokerage, specialty solutions, global risk consulting and captives management, and affinity programs; and health solutions, such as health and benefits brokerages, and health care exchanges.