Aon plc $AON Stock: PineStone Asset Management Inc. Trims Holdings

PineStone Asset Management Inc. trimmed its stake in shares of Aon plc (NYSE:AON) by 8.0% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 735,173 shares of the financial services provider’s stock after selling 64,120 shares during the quarter. AON makes up about 1.3% of PineStone Asset Management Inc.’s portfolio, making the stock its 23rd largest holding. PineStone Asset Management Inc.’s holdings in AON were worth $203,517,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also added to or reduced their stakes in the company. CYBER HORNET ETFs LLC grew its stake in shares of AON by 4,903.4% in the second quarter. CYBER HORNET ETFs LLC now owns 29,470 shares of the financial services provider’s stock worth $9,775,000 after purchasing an additional 28,881 shares during the last quarter. The Manufacturers Life Insurance Company raised its position in AON by 136.1% during the 1st quarter. The Manufacturers Life Insurance Company now owns 547,850 shares of the financial services provider’s stock worth $176,835,000 after purchasing an additional 315,817 shares during the last quarter. National Pension Service raised its position in AON by 2.0% during the 2nd quarter. National Pension Service now owns 484,892 shares of the financial services provider’s stock worth $160,834,000 after purchasing an additional 9,349 shares during the last quarter. Wellington Management Group LLP raised its position in AON by 16.4% during the 2nd quarter. Wellington Management Group LLP now owns 106,370 shares of the financial services provider’s stock worth $35,282,000 after purchasing an additional 14,996 shares during the last quarter. Finally, Ally Financial Inc. acquired a new position in AON during the 2nd quarter worth about $995,000. 86.14% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other AON news, Director Lester Knight acquired 20,000 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The shares were bought at an average cost of $327.48 per share, with a total value of $6,549,600.00. Following the purchase, the director directly owned 163,000 shares of the company’s stock, valued at $53,379,240. This trade represents a 13.99% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel Darren Zeidel sold 1,900 shares of the business’s stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total value of $717,744.00. Following the completion of the transaction, the general counsel directly owned 11,504 shares in the company, valued at $4,345,751.04. This represents a 14.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 1.00% of the company’s stock.

AON Price Performance

Shares of NYSE AON opened at $292.28 on Friday. Aon plc has a twelve month low of $266.33 and a twelve month high of $382.34. The firm has a fifty day simple moving average of $310.87 and a 200 day simple moving average of $326.09. The company has a market capitalization of $62.00 billion, a PE ratio of 16.11, a P/E/G ratio of 1.53 and a beta of 0.70. 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 (NYSE:AON) last released its earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.80 by $0.01. The business had revenue of $4.25 billion for the quarter, compared to analyst estimates of $4.28 billion. AON had a net margin of 22.27% and a return on equity of 42.13%. AON’s revenue for the quarter was up 2.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.49 earnings per share. On average, sell-side analysts forecast that Aon plc will post 18.73 EPS for the current year.

AON Announces Dividend

The firm also recently disclosed 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. The ex-dividend date of this dividend is Monday, November 2nd. This represents a $3.28 annualized dividend and a dividend yield of 1.1%. AON’s dividend payout ratio (DPR) is 18.08%.

AON News Summary

Here are the key news stories impacting AON this week:

• Positive Sentiment: Aon secured the sole-broker role for Zurich’s marine and energy excess-of-loss reinsurance account, a business win that could support brokerage revenue and reinforce Aon’s position in specialty risk markets. Aon wins sole broker position on Zurich marine and energy XoL account
• Positive Sentiment: Aon and the European Bank for Reconstruction and Development expanded support for Ukraine war-risk reinsurance. The initiative could create additional specialty-risk opportunities and highlights Aon’s role in rebuilding insurance capacity in Ukraine. Aon, EBRD expand Ukraine war risk reinsurance
• Positive Sentiment: Aon promoted Chris Rafferty to chief integration officer for its Investment Management and Outsourcing business, while also appointing a Chicago leader. The moves may support integration and execution, although they are not immediate earnings catalysts. Aon promotes Chris Rafferty
• Neutral Sentiment: Aon appointed Leonora Siccardi as global chief execution officer for Risk Capital and Human Capital, effective October 14, adding a senior leadership change without clear near-term financial implications. Aon appoints Leonora Siccardi
• Neutral Sentiment: Preview coverage ahead of Aon’s next quarterly report focuses on expectations for results. Investors will likely watch organic growth, margins, retention and guidance following the company’s prior quarter of modest revenue growth. What to expect from Aon’s next quarterly earnings report
• Negative Sentiment: Morgan Stanley reduced its AON price target to $350, following Cantor Fitzgerald’s cut to $400 from $433. Although both targets remain above the current share level, the reductions signal more cautious expectations for valuation or growth. Morgan Stanley cuts Aon price target

Wall Street Analysts Forecast Growth

AON has been the topic of a number of analyst reports. Evercore reduced their price target on AON from $423.00 to $375.00 in a research report on Thursday, October 8th. Wolfe Research cut AON from a “hold” rating to a “strong sell” rating in a research note on Friday, September 11th. Morgan Stanley lowered their price objective on AON from $410.00 to $350.00 and set an “overweight” rating for the company in a research report on Tuesday, October 6th. Wall Street Zen downgraded AON from a “hold” rating to a “sell” rating in a research report on Sunday, September 6th. Finally, Keefe, Bruyette & Woods cut their price objective on AON from $417.00 to $342.00 and set an “outperform” rating on the stock in a research note on Monday, October 12th. Twelve research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $367.59.

AON Profile

Aon plc is a global professional services firm that helps organizations manage risk, make informed decisions and improve workforce outcomes. Its services span commercial risk, health, retirement and investments, and data and analytics.

The company provides insurance brokerage and risk-management services, including coverage placement, claims support, risk transfer and consulting. Through its reinsurance business, Aon also serves insurers and other organizations seeking to manage catastrophe, capital and underwriting risks.

Aon’s human capital offerings include employee benefits consulting, retirement advisory services, talent and compensation consulting, and health and workforce solutions.