AON (NYSE:AON) Stock Gets Price Target Reduction from Keefe, Bruyette & Woods

AON (NYSE:AON) had its price objective trimmed by Keefe, Bruyette & Woods from $417.00 to $342.00 in a research report released on Monday morning,Benzinga reports. The firm currently has an outperform rating on the financial services provider’s stock.

Several other equities research analysts have also recently issued reports on AON. JPMorgan Chase & Co. lowered their price objective on AON from $412.00 to $362.00 and set an “overweight” rating on the stock in a report on Thursday, October 1st. Cantor Fitzgerald cut their price objective on AON from $433.00 to $400.00 and set an “overweight” rating for the company in a research note on Wednesday, October 7th. Citigroup assumed coverage on AON in a report on Monday, September 21st. They set a “buy” rating and a $435.00 target price for the company. Wall Street Zen downgraded AON from a “hold” rating to a “sell” rating in a research report on Sunday, September 6th. Finally, Morgan Stanley decreased their target price on AON from $410.00 to $350.00 and set an “overweight” rating on the stock in a research report on Tuesday, October 6th. Twelve equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $367.59.

AON Price Performance

NYSE:AON opened at $275.64 on Monday. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 1.34. AON has a 52 week low of $266.33 and a 52 week high of $382.34. The stock’s 50-day moving average price is $313.65 and its 200-day moving average price is $326.52. The stock has a market capitalization of $58.47 billion, a PE ratio of 15.10, a price-to-earnings-growth ratio of 1.44 and a beta of 0.70.

AON (NYSE:AON) last released its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share for the quarter, topping analysts’ consensus estimates of $3.80 by $0.01. The company had revenue of $4.25 billion during the quarter, compared to analysts’ expectations of $4.28 billion. AON had a return on equity of 42.13% and a net margin of 22.27%. AON’s quarterly revenue was up 2.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.49 EPS. As a group, equities analysts expect that AON will post 18.74 EPS for the current fiscal year.

AON Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Monday, November 2nd will be given a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Monday, November 2nd. AON’s dividend payout ratio is 18.08%.

Insider Activity

In other AON news, Director Lester B. Knight acquired 20,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 2nd. The stock was bought at an average price of $327.48 per share, with a total value of $6,549,600.00. Following the purchase, the director owned 163,000 shares in the company, valued at approximately $53,379,240. The trade was a 13.99% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Darren Zeidel sold 1,950 shares of the stock in a transaction that occurred on Friday, July 17th. The shares were sold at an average price of $372.05, for a total value of $725,497.50. Following the completion of the sale, the general counsel directly owned 13,404 shares of the company’s stock, valued at approximately $4,986,958.20. This represents a 12.70% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. City National Bank of Florida MSD grew its holdings in AON by 3.8% during the 4th quarter. City National Bank of Florida MSD now owns 867 shares of the financial services provider’s stock worth $306,000 after acquiring an additional 32 shares in the last quarter. MassMutual Private Wealth & Trust FSB increased its position in shares of AON by 5.3% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 650 shares of the financial services provider’s stock valued at $216,000 after purchasing an additional 33 shares during the last quarter. Aspen Grove Capital LLC raised its holdings in shares of AON by 4.8% in the 1st quarter. Aspen Grove Capital LLC now owns 737 shares of the financial services provider’s stock valued at $238,000 after purchasing an additional 34 shares in the last quarter. KCM Investment Advisors LLC raised its holdings in shares of AON by 6.2% in the 1st quarter. KCM Investment Advisors LLC now owns 651 shares of the financial services provider’s stock valued at $210,000 after purchasing an additional 38 shares in the last quarter. Finally, RDA Financial Network raised its holdings in shares of AON by 2.9% in the 2nd quarter. RDA Financial Network now owns 1,451 shares of the financial services provider’s stock valued at $481,000 after purchasing an additional 41 shares in the last quarter. 86.14% of the stock is currently owned by institutional investors and hedge funds.

AON News Roundup

Here are the key news stories impacting AON this week:

• Positive Sentiment: Aon and the European Bank for Reconstruction and Development expanded their Ukraine Recovery and Reconstruction Guarantee Facility from €110 million to €150 million. The program has supported more than €500 million in reinsurance coverage across nearly 10,000 policies, and the addition of insurers UNIVERSALNA and USG broadens its reach. The move strengthens Aon’s role in Ukraine’s insurance-market development, although its near-term earnings impact is likely limited. Aon and EBRD expand war risk insurance facility
• Neutral Sentiment: Aon appointed Leonora Siccardi as global chief execution officer for its Risk Capital and Human Capital businesses. The newly emphasized execution role could support operational coordination and growth, but investors are unlikely to see an immediate financial effect. Aon appoints Leonora Siccardi
• Neutral Sentiment: Aon forecast Asia-Pacific medical-cost inflation at 9.7%, suggesting some moderation in regional cost growth. This may help clients manage benefits expenses and support demand for advisory services, but the development is not a major direct earnings catalyst. Aon projects Asia-Pacific medical-cost inflation
• Negative Sentiment: Analyst sentiment weakened as Keefe Bruyette cut its Aon price target to $342 from $417, Morgan Stanley set a $350 target, and Wells Fargo reduced its target to $323. Although all remain above the company’s recent trading range, the reductions signal lower valuation expectations and are the clearest near-term reason for pressure on AON. Keefe Bruyette cuts Aon target

About AON

Aon plc is a global professional services firm that helps organizations manage risk, make better decisions and improve performance. Its services are organized around risk capital and human capital, combining advisory expertise, data, analytics and insurance-related solutions.

The company provides commercial risk brokerage and consulting, reinsurance brokerage, retirement and investment advisory services, health benefits consulting, talent and compensation consulting, and related technology and data products.