AON (NYSE:AON) Lowered to “Sell” Rating by Wall Street Zen

Wall Street Zen downgraded shares of AON (NYSE:AON) from a hold rating to a sell rating in a research note issued to investors on Saturday.

Other equities research analysts have also issued reports about the stock. Roth Capital reiterated a “buy” rating and set a $420.00 target price on shares of AON in a research note on Friday. Keefe, Bruyette & Woods dropped their price target on AON from $404.00 to $400.00 and set an “outperform” rating on the stock in a research note on Wednesday, July 8th. Citigroup lifted their price objective on AON from $420.00 to $435.00 and gave the stock a “buy” rating in a report on Thursday. UBS Group increased their target price on AON from $360.00 to $383.00 and gave the company a “neutral” rating in a report on Wednesday, July 8th. Finally, Mizuho raised their target price on AON from $389.00 to $426.00 and gave the stock an “outperform” rating in a research report on Thursday, July 9th. Twelve equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, AON has an average rating of “Moderate Buy” and a consensus target price of $409.06.

AON Stock Performance

Shares of NYSE AON opened at $360.71 on Friday. The firm’s 50-day moving average price is $341.22 and its 200-day moving average price is $332.07. AON has a 52-week low of $304.59 and a 52-week high of $382.34. The company has a market cap of $76.51 billion, a PE ratio of 19.88, a PEG ratio of 1.86 and a beta of 0.71. The company has a quick ratio of 1.95, a current ratio of 1.54 and a debt-to-equity ratio of 1.34.

AON (NYSE:AON) last released its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share for the quarter, beating the consensus estimate of $3.80 by $0.01. The firm had revenue of $4.25 billion during the quarter, compared to analysts’ expectations of $4.28 billion. AON had a net margin of 22.27% and a return on equity of 42.13%. The firm’s quarterly revenue was up 2.2% on a year-over-year basis. During the same period in the previous year, the company earned $3.49 earnings per share. As a group, analysts anticipate that AON will post 19.09 EPS for the current year.

AON Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Monday, August 3rd will be given a dividend of $0.82 per share. The ex-dividend date of this dividend is Monday, August 3rd. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.9%. AON’s payout ratio is presently 18.08%.

Insider Activity at AON

In related news, General Counsel Darren Zeidel sold 1,900 shares of the firm’s stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $377.76, for a total value of $717,744.00. Following the transaction, the general counsel directly owned 11,504 shares of the company’s stock, valued at approximately $4,345,751.04. This trade represents a 14.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In the last ninety days, insiders sold 4,450 shares of company stock valued at $1,659,242. Corporate insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. City National Bank of Florida MSD grew its stake in shares of 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 valued at $306,000 after acquiring an additional 32 shares during the period. Salomon & Ludwin LLC raised its stake in AON by 39.3% during the 4th quarter. Salomon & Ludwin LLC now owns 117 shares of the financial services provider’s stock worth $41,000 after acquiring an additional 33 shares during the period. Mattern Capital Management LLC lifted its holdings in AON by 0.8% during the fourth quarter. Mattern Capital Management LLC now owns 3,974 shares of the financial services provider’s stock valued at $1,402,000 after purchasing an additional 33 shares in the last quarter. MassMutual Private Wealth & Trust FSB boosted its position in shares of AON by 5.3% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 650 shares of the financial services provider’s stock worth $216,000 after purchasing an additional 33 shares during the period. Finally, Seascape Capital Management boosted its position in shares of AON by 0.3% in the fourth quarter. Seascape Capital Management now owns 11,030 shares of the financial services provider’s stock worth $3,892,000 after purchasing an additional 34 shares during the period. Institutional investors own 86.14% of the company’s stock.

Trending Headlines about AON

Here are the key news stories impacting AON this week:

• Positive Sentiment: Aon reported second-quarter adjusted earnings of $3.81 per share, narrowly above the $3.80 consensus and up from $3.49 a year earlier. Organic revenue growth reached 5%, while operating margins expanded and management reaffirmed its full-year guidance. Aon Q2 results and guidance
• Positive Sentiment: Growth in reinsurance and property-and-casualty businesses, combined with a record pace of share repurchases, strengthened the company’s capital-return story. Aon also declared a quarterly dividend of $0.82 per share. Aon buyback and Q2 growth
• Positive Sentiment: Citigroup raised its price target to $435 from $420 with a Buy rating, and Wells Fargo increased its target to $419 from $406 with an Overweight rating, signaling continued confidence in Aon’s longer-term earnings outlook.
• Neutral Sentiment: Revenue rose 2.2% year over year to $4.25 billion but missed the $4.28 billion estimate. Higher expenses and lower interest income limited the benefit from organic growth and acquisitions, leaving investors focused on whether revenue growth can accelerate.
• Neutral Sentiment: Aon said severe weather across the U.S. Midwest—including wind, hail and tornadoes—could rank among the top 10 costliest severe-weather events. The company also expects losses from the July Japan earthquake to be below those from the 2016 Kumamoto earthquake; these developments highlight insurance-market activity but have limited direct earnings impact for Aon.
• Negative Sentiment: General Counsel Darren Zeidel sold 1,900 shares for approximately $718,000, following additional sales earlier in July. Although he retains a sizable position, the repeated insider selling may weigh modestly on sentiment. Aon insider sale
• Negative Sentiment: WTW reported faster growth in its broking arm than Aon, Marsh and Gallagher, underscoring competitive pressure in Aon’s core brokerage market. WTW broking growth comparison

AON Company Profile

Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.

In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.