Royal Bank Of Canada Issues Positive Forecast for Arthur J. Gallagher & Co. (NYSE:AJG) Stock Price

Arthur J. Gallagher & Co. (NYSE:AJG) had its target price lifted by Royal Bank Of Canada from $300.00 to $310.00 in a research report report published on Friday morning,Benzinga reports. Royal Bank Of Canada currently has an outperform rating on the financial services provider’s stock.

Several other equities research analysts also recently issued reports on AJG. UBS Group increased their target price on Arthur J. Gallagher & Co. from $250.00 to $291.00 and gave the stock a “buy” rating in a research report on Wednesday, July 8th. Citigroup upgraded Arthur J. Gallagher & Co. from a “neutral” rating to a “buy” rating and decreased their price objective for the company from $280.00 to $250.00 in a research note on Wednesday, May 6th. Wells Fargo & Company increased their price objective on Arthur J. Gallagher & Co. from $271.00 to $299.00 and gave the stock an “overweight” rating in a report on Thursday, July 9th. Piper Sandler raised their target price on Arthur J. Gallagher & Co. from $276.00 to $287.00 and gave the stock an “overweight” rating in a research note on Friday. Finally, Truist Financial upped their price target on Arthur J. Gallagher & Co. from $225.00 to $265.00 and gave the company a “hold” rating in a research report on Friday. Thirteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $285.29.

Arthur J. Gallagher & Co. Stock Performance

NYSE AJG opened at $249.35 on Friday. The firm has a market cap of $64.06 billion, a P/E ratio of 41.35, a price-to-earnings-growth ratio of 1.33 and a beta of 0.50. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.51. The company’s 50 day moving average is $231.67 and its 200-day moving average is $225.08. Arthur J. Gallagher & Co. has a 12-month low of $190.75 and a 12-month high of $313.55.

Arthur J. Gallagher & Co. (NYSE:AJG) last released its quarterly earnings data on Thursday, July 30th. The financial services provider reported $2.84 EPS for the quarter, topping the consensus estimate of $2.81 by $0.03. Arthur J. Gallagher & Co. had a net margin of 9.96% and a return on equity of 13.32%. The company had revenue of $3.95 billion during the quarter, compared to the consensus estimate of $4.01 billion. During the same period last year, the firm earned $2.33 EPS. Arthur J. Gallagher & Co.’s revenue for the quarter was up 24.3% on a year-over-year basis. Sell-side analysts predict that Arthur J. Gallagher & Co. will post 13.22 earnings per share for the current year.

Arthur J. Gallagher & Co. Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Tuesday, September 8th will be issued a $0.70 dividend. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $2.80 annualized dividend and a dividend yield of 1.1%. Arthur J. Gallagher & Co.’s dividend payout ratio is presently 46.43%.

Insider Transactions at Arthur J. Gallagher & Co.

In related news, CAO Richard C. Cary sold 3,000 shares of Arthur J. Gallagher & Co. stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $206.00, for a total transaction of $618,000.00. Following the completion of the sale, the chief accounting officer owned 47,819 shares of the company’s stock, valued at approximately $9,850,714. This trade represents a 5.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.40% of the company’s stock.

Institutional Trading of Arthur J. Gallagher & Co.

Several institutional investors and hedge funds have recently modified their holdings of the business. Kemnay Advisory Services Inc. bought a new stake in shares of Arthur J. Gallagher & Co. during the 4th quarter valued at about $26,000. Rakuten Securities Inc. increased its position in shares of Arthur J. Gallagher & Co. by 650.0% in the second quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider’s stock worth $34,000 after purchasing an additional 91 shares during the last quarter. Axiom Investment Management LLC purchased a new stake in Arthur J. Gallagher & Co. in the first quarter valued at approximately $28,000. MV Capital Management Inc. purchased a new stake in Arthur J. Gallagher & Co. in the fourth quarter valued at approximately $34,000. Finally, Cassaday & Co Wealth Management LLC bought a new stake in Arthur J. Gallagher & Co. during the first quarter valued at approximately $29,000. Hedge funds and other institutional investors own 85.53% of the company’s stock.

Key Stories Impacting Arthur J. Gallagher & Co.

Here are the key news stories impacting Arthur J. Gallagher & Co. this week:

• Positive Sentiment: Second-quarter adjusted earnings were $2.84 per share, exceeding the $2.81 analyst consensus and rising from $2.33 a year earlier. Revenue increased 24.3% year over year to approximately $3.95 billion, supported by acquisitions and 6% organic growth across the Brokerage and Risk Management segments. Arthur J. Gallagher quarterly earnings report
• Positive Sentiment: Analysts raised their outlooks following the earnings release. RBC lifted its price target to $310 from $300 and retained an Outperform rating, while Mizuho raised its target to $300 from $287 and also maintained Outperform. William Blair reaffirmed its Buy rating, citing cash EPS growth, resilient brokerage performance and potential upside from mergers and acquisitions. William Blair Buy rating reaffirmed
• Positive Sentiment: Gallagher repurchased roughly 900,000 shares for about $170 million during the quarter and declared a quarterly dividend of $0.70 per share, providing additional shareholder returns. Arthur J. Gallagher second-quarter results
• Neutral Sentiment: Truist raised its target to $265 but kept a Hold rating, while Keefe, Bruyette & Woods increased its target to $271 and maintained Market Perform. The mixed ratings suggest analysts see valuation and execution risks despite longer-term growth potential. Analyst price-target changes
• Negative Sentiment: Revenue fell short of the approximately $4.01 billion consensus estimate as higher expenses and lower interest income offset otherwise strong operating growth. Reported net earnings declined to $324 million from $368 million a year earlier, while reported diluted EPS fell to $1.25 from $1.40. These results likely explain why the stock has decreased despite the adjusted EPS beat. AJG second-quarter earnings analysis
• Negative Sentiment: Investors remain concerned that acquisitions are contributing more to headline growth while insurance-broker organic growth could moderate. With AJG trading at a relatively high earnings multiple, the revenue miss and profitability pressure may have prompted profit-taking after the results.

Arthur J. Gallagher & Co. Company Profile

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.