Arthur J. Gallagher & Co. (NYSE:AJG) Posts Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Arthur J. Gallagher & Co. (NYSE:AJG) posted its quarterly earnings results on Thursday. The financial services provider reported $2.38 earnings per share for the quarter, missing analysts’ consensus estimates of $2.42 by ($0.04), FiscalAI reports. Arthur J. Gallagher & Co. had a return on equity of 11.98% and a net margin of 13.58%.The business had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.61 billion.

Arthur J. Gallagher & Co. Stock Up 1.3%

AJG stock traded up $3.25 during midday trading on Thursday, hitting $245.62. 2,236,474 shares of the company’s stock were exchanged, compared to its average volume of 2,000,641. The stock has a market capitalization of $63.08 billion, a price-to-earnings ratio of 36.71, a price-to-earnings-growth ratio of 1.31 and a beta of 0.67. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.52. The firm has a 50 day moving average price of $253.23 and a 200-day moving average price of $277.29. Arthur J. Gallagher & Co. has a 12-month low of $236.34 and a 12-month high of $351.23.

Arthur J. Gallagher & Co. Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Friday, March 6th will be given a dividend of $0.70 per share. The ex-dividend date of this dividend is Friday, March 6th. This is a positive change from Arthur J. Gallagher & Co.’s previous quarterly dividend of $0.65. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.1%. Arthur J. Gallagher & Co.’s dividend payout ratio is presently 38.86%.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Citigroup lowered their price target on Arthur J. Gallagher & Co. from $330.00 to $277.00 and set a “neutral” rating for the company in a research report on Monday, November 3rd. Wolfe Research set a $289.00 price target on shares of Arthur J. Gallagher & Co. and gave the stock an “outperform” rating in a research note on Wednesday, December 17th. Morgan Stanley set a $300.00 target price on Arthur J. Gallagher & Co. in a research report on Friday, December 19th. UBS Group decreased their target price on Arthur J. Gallagher & Co. from $329.00 to $285.00 and set a “neutral” rating on the stock in a research report on Wednesday, December 17th. Finally, Barclays lowered their target price on Arthur J. Gallagher & Co. from $250.00 to $247.00 and set an “underweight” rating on the stock in a report on Thursday, January 8th. Seven equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $290.50.

Insider Activity at Arthur J. Gallagher & Co.

In related news, CAO Richard C. Cary sold 6,000 shares of Arthur J. Gallagher & Co. stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $261.00, for a total value of $1,566,000.00. Following the completion of the transaction, the chief accounting officer directly owned 50,668 shares in the company, valued at approximately $13,224,348. This trade represents a 10.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, General Counsel Walter D. Bay sold 15,850 shares of Arthur J. Gallagher & Co. stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $255.00, for a total value of $4,041,750.00. Following the completion of the transaction, the general counsel owned 79,549 shares of the company’s stock, valued at approximately $20,284,995. The trade was a 16.61% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 32,100 shares of company stock worth $8,243,865 over the last 90 days. Company insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On Arthur J. Gallagher & Co.

A number of hedge funds have recently made changes to their positions in AJG. Jump Financial LLC purchased a new position in shares of Arthur J. Gallagher & Co. during the second quarter valued at $2,825,000. Qube Research & Technologies Ltd bought a new stake in Arthur J. Gallagher & Co. in the second quarter worth approximately $3,429,000. Treasurer of the State of North Carolina boosted its holdings in Arthur J. Gallagher & Co. by 5.3% in the second quarter. Treasurer of the State of North Carolina now owns 118,467 shares of the financial services provider’s stock worth $37,924,000 after purchasing an additional 5,947 shares in the last quarter. Peapack Gladstone Financial Corp increased its holdings in shares of Arthur J. Gallagher & Co. by 2,919.2% during the 2nd quarter. Peapack Gladstone Financial Corp now owns 19,987 shares of the financial services provider’s stock valued at $6,398,000 after acquiring an additional 19,325 shares during the last quarter. Finally, Armistice Capital LLC bought a new position in shares of Arthur J. Gallagher & Co. in the second quarter valued at approximately $412,000. Institutional investors own 85.53% of the company’s stock.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co is a global insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois. Founded in 1927 by Arthur J. Gallagher, the company has grown from a regional broker into an international professional services organization that arranges insurance, provides consulting and designs risk-transfer solutions for commercial, industrial, public sector and individual clients.

The company’s core activities include property and casualty insurance brokerage, employee benefits consulting and administration, and a range of risk management services.