Royal Bank of Canada Downgrades Arthur J. Gallagher & Co. (NYSE:AJG) to Sector Perform

Royal Bank of Canada downgraded shares of Arthur J. Gallagher & Co. (NYSE:AJG) from an outperform rating to a sector perform rating in a research report released on Wednesday morning, Analyst Ratings Network reports. They currently have $124.00 price objective on the financial services provider’s stock, up from their prior price objective of $114.00.

Other equities analysts have also recently issued reports about the company. Zacks Investment Research raised Arthur J. Gallagher & Co. from a hold rating to a buy rating and set a $130.00 price target on the stock in a report on Wednesday, December 16th. Credit Suisse Group cut Arthur J. Gallagher & Co. from an outperform rating to a neutral rating and set a $132.00 price target on the stock. in a report on Monday. The Goldman Sachs Group cut Arthur J. Gallagher & Co. from a buy rating to a neutral rating and increased their price target for the company from $123.00 to $129.00 in a report on Friday, January 8th. Morgan Stanley increased their price target on Arthur J. Gallagher & Co. from $120.00 to $123.00 and gave the company an equal weight rating in a report on Tuesday. Finally, Deutsche Bank Aktiengesellschaft increased their price target on Arthur J. Gallagher & Co. from $126.00 to $135.00 and gave the company a buy rating in a report on Wednesday, December 16th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and eight have assigned a buy rating to the company. The stock currently has a consensus rating of Buy and a consensus target price of $124.53.

Arthur J. Gallagher & Co. stock traded down $0.85 during trading hours on Wednesday, hitting $117.08. 13,644 shares of the stock traded hands, compared to its average volume of 778,089. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.73. The firm’s 50-day moving average price is $120.50 and its two-hundred day moving average price is $109.39. Arthur J. Gallagher & Co. has a one year low of $65.09 and a one year high of $129.12. The company has a market cap of $22.52 billion, a PE ratio of 29.56, a PEG ratio of 2.42 and a beta of 0.70.

Arthur J. Gallagher & Co. (NYSE:AJG) last posted its quarterly earnings results on Thursday, October 29th. The financial services provider reported $1.08 earnings per share for the quarter, topping the consensus estimate of $0.92 by $0.16. The company had revenue of $1.81 billion for the quarter, compared to the consensus estimate of $1.69 billion. Arthur J. Gallagher & Co. had a return on equity of 16.19% and a net margin of 11.04%. The firm’s quarterly revenue was up .9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.80 EPS. On average, sell-side analysts expect that Arthur J. Gallagher & Co. will post 4.61 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Friday, December 18th. Shareholders of record on Friday, December 4th were issued a dividend of $0.45 per share. The ex-dividend date of this dividend was Thursday, December 3rd. This represents a $1.80 dividend on an annualized basis and a yield of 1.54%. Arthur J. Gallagher & Co.’s dividend payout ratio is presently 49.32%.

In other Arthur J. Gallagher & Co. news, VP Scott R. Hudson sold 6,650 shares of the firm’s stock in a transaction dated Monday, December 14th. The stock was sold at an average price of $121.09, for a total transaction of $805,248.50. Following the sale, the vice president now directly owns 41,837 shares of the company’s stock, valued at $5,066,042.33. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, General Counsel Walter D. Bay sold 12,600 shares of the firm’s stock in a transaction dated Thursday, December 10th. The shares were sold at an average price of $119.23, for a total value of $1,502,298.00. Following the transaction, the general counsel now owns 33,022 shares of the company’s stock, valued at approximately $3,937,213.06. The disclosure for this sale can be found here. Over the last three months, insiders have sold 45,200 shares of company stock worth $5,331,241. Insiders own 1.40% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. NuWave Investment Management LLC purchased a new position in Arthur J. Gallagher & Co. in the third quarter worth about $25,000. CVA Family Office LLC purchased a new position in Arthur J. Gallagher & Co. in the third quarter worth about $48,000. Captrust Financial Advisors purchased a new position in Arthur J. Gallagher & Co. in the second quarter worth about $50,000. Paces Ferry Wealth Advisors LLC purchased a new position in Arthur J. Gallagher & Co. in the third quarter worth about $52,000. Finally, Massmutual Trust Co. FSB ADV grew its position in Arthur J. Gallagher & Co. by 139.9% in the third quarter. Massmutual Trust Co. FSB ADV now owns 511 shares of the financial services provider’s stock worth $54,000 after acquiring an additional 298 shares in the last quarter. Institutional investors own 81.99% of the company’s stock.

Arthur J. Gallagher & Co. Company Profile

Arthur J. Gallagher & Co, together with its subsidiaries, provides insurance brokerage, consulting, and third party claims settlement and administration services in the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, and the United Kingdom. Its Brokerage segment consists of retail and wholesale insurance brokerage operations.

See Also: Cash Asset Ratio

Analyst Recommendations for Arthur J. Gallagher & Co. (NYSE:AJG)

Receive News & Ratings for Arthur J. Gallagher & Co. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Arthur J. Gallagher & Co. and related companies with MarketBeat.com's FREE daily email newsletter.