Arthur J. Gallagher & Co. (NYSE:AJG) Sets New 1-Year High – Here’s Why

Arthur J. Gallagher & Co. (NYSE:AJG)’s stock price reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $314.44 and last traded at $313.09, with a volume of 26028 shares traded. The stock had previously closed at $312.96.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on AJG shares. TD Cowen lifted their price target on Arthur J. Gallagher & Co. from $273.00 to $288.00 and gave the company a “hold” rating in a research report on Tuesday, August 13th. Royal Bank of Canada lifted their target price on Arthur J. Gallagher & Co. from $310.00 to $320.00 and gave the company an “outperform” rating in a report on Friday, September 20th. Piper Sandler increased their price target on shares of Arthur J. Gallagher & Co. from $254.00 to $293.00 and gave the stock a “neutral” rating in a report on Friday, September 20th. Bank of America upped their target price on shares of Arthur J. Gallagher & Co. from $271.00 to $293.00 and gave the stock an “underperform” rating in a report on Thursday, October 10th. Finally, Barclays raised their price target on shares of Arthur J. Gallagher & Co. from $300.00 to $308.00 and gave the company an “equal weight” rating in a report on Thursday, November 21st. Three investment analysts have rated the stock with a sell rating, eight have issued a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $291.64.

Arthur J. Gallagher & Co. Stock Performance

The company has a debt-to-equity ratio of 0.64, a current ratio of 1.06 and a quick ratio of 1.06. The company has a 50 day simple moving average of $290.17 and a 200-day simple moving average of $278.55. The firm has a market cap of $69.15 billion, a PE ratio of 60.03, a price-to-earnings-growth ratio of 2.61 and a beta of 0.72.

Arthur J. Gallagher & Co. (NYSE:AJG) last issued its earnings results on Thursday, October 24th. The financial services provider reported $2.26 EPS for the quarter, hitting analysts’ consensus estimates of $2.26. Arthur J. Gallagher & Co. had a net margin of 10.40% and a return on equity of 19.12%. The company had revenue of $2.77 billion for the quarter, compared to analysts’ expectations of $2.78 billion. During the same quarter last year, the company earned $2.00 EPS. The firm’s revenue was up 12.8% compared to the same quarter last year. As a group, equities research analysts anticipate that Arthur J. Gallagher & Co. will post 10.12 EPS for the current year.

Arthur J. Gallagher & Co. Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, December 6th will be given a dividend of $0.60 per share. The ex-dividend date is Friday, December 6th. This represents a $2.40 annualized dividend and a yield of 0.76%. Arthur J. Gallagher & Co.’s payout ratio is 45.71%.

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

In other news, CFO Douglas K. Howell sold 7,000 shares of the stock in a transaction dated Thursday, September 19th. The shares were sold at an average price of $284.68, for a total transaction of $1,992,760.00. Following the completion of the sale, the chief financial officer now directly owns 75,963 shares in the company, valued at approximately $21,625,146.84. This represents a 8.44 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Christopher E. Mead sold 2,800 shares of the business’s stock in a transaction dated Monday, October 28th. The shares were sold at an average price of $287.00, for a total value of $803,600.00. Following the transaction, the vice president now owns 14,674 shares in the company, valued at approximately $4,211,438. This represents a 16.02 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 23,900 shares of company stock worth $6,892,280. 1.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Arthur J. Gallagher & Co.

Hedge funds have recently made changes to their positions in the business. Mark Sheptoff Financial Planning LLC bought a new stake in Arthur J. Gallagher & Co. in the second quarter valued at $26,000. Strategic Investment Solutions Inc. IL bought a new stake in shares of Arthur J. Gallagher & Co. during the 2nd quarter valued at about $26,000. Pin Oak Investment Advisors Inc. raised its stake in Arthur J. Gallagher & Co. by 543.8% in the third quarter. Pin Oak Investment Advisors Inc. now owns 103 shares of the financial services provider’s stock worth $28,000 after buying an additional 87 shares in the last quarter. DiNuzzo Private Wealth Inc. lifted its holdings in Arthur J. Gallagher & Co. by 89.7% in the second quarter. DiNuzzo Private Wealth Inc. now owns 110 shares of the financial services provider’s stock worth $29,000 after buying an additional 52 shares during the period. Finally, Quarry LP bought a new stake in Arthur J. Gallagher & Co. during the 2nd quarter valued at approximately $29,000. 85.53% of the stock is owned by hedge funds and other institutional investors.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co, together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide. It operates in Brokerage and Risk Management segments. The Brokerage segment offers retail and wholesale insurance and reinsurance brokerage services; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; and acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverages to underwriting enterprises.