Arthur J Gallagher & Co (AJG) Upgraded at Zacks Investment Research
Arthur J Gallagher & Co (NYSE:AJG) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Monday. The brokerage currently has a $71.00 price objective on the financial services provider’s stock. Zacks Investment Research‘s price objective points to a potential upside of 11.15% from the stock’s current price.
According to Zacks, “Shares of Arthur J. Gallagher have outperformed the industry, in a year's time. Arthur J. Gallagher’s inorganic story seems impressive with strategic buyouts, with the company intending to pursue smaller tuck-in mergers in 2017. It remains focused on tapping opportunities in the U.K., Australia, New Zealand, Canada and the U.S. The company remains focused on enhancing productivity and quality that is a part of its value creation strategy. A solid performance is leading to sufficient cash flows help it deploy capital in shareholder-friendly moves. However, escalating expenses and weak commercial P&C rates pose concerns. Adverse foreign exchange also will weigh on results. It is set to release fourth quarter results on Jan 25. A Zacks Rank #2 increases the predictive power of a beat, but combined with the Earnings ESP of -0.45%, makes prediction difficult.”
Several other research firms have also recently issued reports on AJG. Wells Fargo & Co set a $74.00 target price on Arthur J Gallagher & Co and gave the stock a “buy” rating in a research note on Friday, December 8th. Keefe, Bruyette & Woods reissued a “buy” rating and set a $77.00 target price on shares of Arthur J Gallagher & Co in a research note on Friday, December 22nd. Barclays raised their target price on Arthur J Gallagher & Co from $68.00 to $70.00 and gave the stock an “overweight” rating in a research note on Monday, October 16th. ValuEngine cut Arthur J Gallagher & Co from a “buy” rating to a “hold” rating in a research note on Friday, December 1st. Finally, Royal Bank of Canada reissued a “hold” rating and set a $59.00 target price on shares of Arthur J Gallagher & Co in a research note on Tuesday, October 10th. Five investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company. Arthur J Gallagher & Co has an average rating of “Buy” and an average target price of $68.22.
Arthur J Gallagher & Co (NYSE:AJG) last posted its earnings results on Thursday, October 26th. The financial services provider reported $0.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.02. The company had revenue of $1.58 billion during the quarter, compared to analysts’ expectations of $1.60 billion. Arthur J Gallagher & Co had a return on equity of 13.56% and a net margin of 7.62%. The firm’s quarterly revenue was up 6.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.77 earnings per share. analysts predict that Arthur J Gallagher & Co will post 2.99 EPS for the current fiscal year.
In related news, Director Frank E. Jr. English sold 1,500 shares of the business’s stock in a transaction on Friday, November 3rd. The stock was sold at an average price of $63.67, for a total transaction of $95,505.00. Following the completion of the transaction, the director now directly owns 10,600 shares of the company’s stock, valued at approximately $674,902. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Scott R. Hudson sold 7,600 shares of the business’s stock in a transaction on Friday, December 8th. The stock was sold at an average price of $65.29, for a total value of $496,204.00. Following the transaction, the vice president now directly owns 25,027 shares of the company’s stock, valued at $1,634,012.83. The disclosure for this sale can be found here. Insiders own 1.60% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Invictus RG purchased a new stake in Arthur J Gallagher & Co during the 3rd quarter worth about $130,000. Eagle Boston Investment Management Inc. purchased a new stake in Arthur J Gallagher & Co during the 3rd quarter worth about $201,000. Doyle Wealth Management purchased a new stake in Arthur J Gallagher & Co during the 3rd quarter worth about $203,000. Coldstream Capital Management Inc. purchased a new stake in Arthur J Gallagher & Co during the 2nd quarter worth about $202,000. Finally, Dai Ichi Life Insurance Company Ltd purchased a new stake in Arthur J Gallagher & Co during the 3rd quarter worth about $218,000. 82.52% of the stock is owned by hedge funds and other institutional investors.
ILLEGAL ACTIVITY WARNING: This news story was reported by American Banking News and is the sole property of of American Banking News. If you are viewing this news story on another site, it was illegally copied and reposted in violation of U.S. and international trademark and copyright legislation. The correct version of this news story can be accessed at https://www.americanbankingnews.com/2018/01/15/arthur-j-gallagher-co-ajg-upgraded-at-zacks-investment-research-2.html.
Arthur J Gallagher & Co Company Profile
Arthur J. Gallagher & Co and its subsidiaries are engaged in providing insurance brokerage and consulting services, and third-party claims settlement and administration services to both domestic and international entities. The Company operates through three segments: brokerage, risk management and corporate.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Arthur J Gallagher & Co Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Arthur J Gallagher & Co and related companies with MarketBeat.com's FREE daily email newsletter.