Arthur J. Gallagher & Co. (NYSE:AJG) Announces Earnings Results

Arthur J. Gallagher & Co. (NYSE:AJG) released its earnings results on Thursday. The financial services provider reported $2.26 EPS for the quarter, topping analysts’ consensus estimates of $2.24 by $0.02, Briefing.com reports. Arthur J. Gallagher & Co. had a net margin of 10.27% and a return on equity of 18.94%. The firm had revenue of $2.73 billion during the quarter, compared to analyst estimates of $2.77 billion. During the same quarter in the previous year, the business earned $1.90 EPS. The business’s quarterly revenue was up 14.3% compared to the same quarter last year.

Arthur J. Gallagher & Co. Stock Performance

Shares of AJG stock traded up $9.56 on Friday, reaching $283.53. The stock had a trading volume of 1,161,093 shares, compared to its average volume of 850,743. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.70. The firm’s 50-day moving average is $261.33 and its two-hundred day moving average is $248.45. The firm has a market capitalization of $61.95 billion, a price-to-earnings ratio of 57.39, a P/E/G ratio of 2.45 and a beta of 0.72. Arthur J. Gallagher & Co. has a 12 month low of $214.13 and a 12 month high of $283.90.

Arthur J. Gallagher & Co. Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, September 20th. Stockholders of record on Friday, September 6th will be issued a $0.60 dividend. The ex-dividend date is Friday, September 6th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.85%. Arthur J. Gallagher & Co.’s payout ratio is 48.58%.

Wall Street Analysts Forecast Growth

A number of analysts have commented on AJG shares. Bank Of America (Bofa) lifted their target price on shares of Arthur J. Gallagher & Co. from $255.00 to $265.00 and gave the stock an “underperform” rating in a report on Friday. Keefe, Bruyette & Woods lifted their target price on shares of Arthur J. Gallagher & Co. from $241.00 to $252.00 and gave the stock an “underperform” rating in a report on Friday. Piper Sandler lifted their target price on shares of Arthur J. Gallagher & Co. from $252.00 to $254.00 and gave the stock a “neutral” rating in a report on Friday. Royal Bank of Canada boosted their price target on shares of Arthur J. Gallagher & Co. from $290.00 to $310.00 and gave the company an “outperform” rating in a report on Friday. Finally, Bank of America boosted their price target on shares of Arthur J. Gallagher & Co. from $233.00 to $255.00 and gave the company an “underperform” rating in a report on Wednesday, May 22nd. Three equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and six have given a buy rating to the company’s stock. According to data from MarketBeat, Arthur J. Gallagher & Co. has a consensus rating of “Hold” and a consensus target price of $273.27.

Insider Activity

In other news, CFO Douglas K. Howell sold 16,000 shares of the company’s stock in a transaction dated Friday, May 10th. The shares were sold at an average price of $248.41, for a total value of $3,974,560.00. Following the sale, the chief financial officer now directly owns 80,952 shares of the company’s stock, valued at approximately $20,109,286.32. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In related news, General Counsel Walter D. Bay sold 8,717 shares of the company’s stock in a transaction dated Friday, May 17th. The shares were sold at an average price of $257.00, for a total value of $2,240,269.00. Following the transaction, the general counsel now owns 44,691 shares in the company, valued at approximately $11,485,587. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Douglas K. Howell sold 16,000 shares of the company’s stock in a transaction dated Friday, May 10th. The shares were sold at an average price of $248.41, for a total transaction of $3,974,560.00. Following the completion of the transaction, the chief financial officer now owns 80,952 shares in the company, valued at approximately $20,109,286.32. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 53,165 shares of company stock valued at $13,629,049. 1.60% of the stock is owned by company insiders.

Arthur J. Gallagher & Co. Company Profile

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.