Arthur J Gallagher & Co (NYSE:AJG) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Monday. The firm presently has a $81.00 price target on the financial services provider’s stock. Zacks Investment Research‘s target price indicates a potential upside of 16.10% from the company’s previous close.
According to Zacks, “Arthur J. Gallagher’s bottom line beat expectations, driven by solid organic growth, outstanding revenue improvement from the tuck-in mergers and acquisitions and a strong margin expansion. 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, the pipeline remaining strong with about $300 million of revenues. The company 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 part of its value creation strategy. A solid performance is leading to sufficient cash flows and helps the company deploy capital in shareholder-friendly moves. However, escalating expenses and weak commercial P&C rates pose concerns.”
AJG has been the topic of a number of other research reports. Credit Suisse Group boosted their target price on shares of Arthur J Gallagher & Co from $68.00 to $69.00 and gave the company an “outperform” rating in a report on Friday, October 27th. Wells Fargo & Co reissued a “buy” rating and set a $74.00 target price on shares of Arthur J Gallagher & Co in a report on Thursday. Royal Bank of Canada reissued a “hold” rating and set a $64.00 target price on shares of Arthur J Gallagher & Co in a report on Friday, December 8th. Deutsche Bank cut shares of Arthur J Gallagher & Co from a “buy” rating to a “hold” rating and set a $64.00 target price on the stock. in a report on Wednesday, October 4th. Finally, ValuEngine cut shares of Arthur J Gallagher & Co from a “buy” rating to a “hold” rating in a report on Friday, December 1st. Five investment analysts have rated the stock with a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average target price of $69.90.
Arthur J Gallagher & Co (NYSE:AJG) last issued its earnings results on Thursday, January 25th. The financial services provider reported $0.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.75 by $0.07. Arthur J Gallagher & Co had a net margin of 7.52% and a return on equity of 13.95%. The business had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.48 billion. During the same quarter in the previous year, the firm posted $0.66 EPS. The business’s revenue for the quarter was up 15.5% compared to the same quarter last year. analysts forecast that Arthur J Gallagher & Co will post 3.5 EPS for the current fiscal year.
In other news, Director Frank E. Jr. English sold 1,500 shares of the company’s stock in a transaction on Friday, November 3rd. The shares were sold at an average price of $63.67, for a total value of $95,505.00. Following the transaction, the director now owns 10,600 shares of the company’s stock, valued at $674,902. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Scott R. Hudson sold 7,600 shares of the stock in a transaction on Friday, December 8th. The shares were sold at an average price of $65.29, for a total value of $496,204.00. Following the completion of the transaction, the vice president now directly owns 25,027 shares in the company, valued at approximately $1,634,012.83. The disclosure for this sale can be found here. Corporate 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 bought a new position in Arthur J Gallagher & Co in the third quarter valued at $130,000. Cerebellum GP LLC bought a new position in Arthur J Gallagher & Co in the fourth quarter valued at $154,000. Oakworth Capital Inc. increased its stake in Arthur J Gallagher & Co by 49.6% in the fourth quarter. Oakworth Capital Inc. now owns 2,430 shares of the financial services provider’s stock valued at $160,000 after acquiring an additional 806 shares during the last quarter. Eagle Boston Investment Management Inc. bought a new position in Arthur J Gallagher & Co in the third quarter valued at $201,000. Finally, Coldstream Capital Management Inc. bought a new position in Arthur J Gallagher & Co in the second quarter valued at $202,000. 82.26% of the stock is currently owned by institutional investors and hedge funds.
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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.
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