Arthur J. Gallagher & Co. (NYSE:AJG) Price Target Raised to $271.00 at Keefe, Bruyette & Woods

Arthur J. Gallagher & Co. (NYSE:AJG) had its target price lifted by Keefe, Bruyette & Woods from $261.00 to $271.00 in a research note published on Friday morning,Benzinga reports. Keefe, Bruyette & Woods currently has a market perform rating on the financial services provider’s stock.

Several other analysts also recently weighed in on the stock. Royal Bank Of Canada lifted their target price on shares of Arthur J. Gallagher & Co. from $260.00 to $300.00 and gave the company an “outperform” rating in a report on Monday, July 13th. Mizuho raised their price target on Arthur J. Gallagher & Co. from $261.00 to $287.00 and gave the stock an “outperform” rating in a research report on Thursday, July 9th. UBS Group lifted their price objective on Arthur J. Gallagher & Co. from $250.00 to $291.00 and gave the company a “buy” rating in a research note on Wednesday, July 8th. Truist Financial decreased their target price on Arthur J. Gallagher & Co. from $235.00 to $225.00 and set a “hold” rating on the stock in a research note on Friday, May 1st. Finally, Cantor Fitzgerald raised their target price on Arthur J. Gallagher & Co. from $285.00 to $300.00 and gave the company a “neutral” rating in a report on Thursday, July 9th. Thirteen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $285.29.

Arthur J. Gallagher & Co. Trading Down 2.8%

NYSE AJG opened at $249.35 on Friday. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.06 and a quick ratio of 1.06. The stock has a market capitalization of $64.06 billion, a P/E ratio of 41.35, a PEG ratio of 1.33 and a beta of 0.50. The firm’s 50-day moving average is $231.67 and its two-hundred 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 announced its quarterly earnings results on Thursday, July 30th. The financial services provider reported $2.84 earnings per share for the quarter, beating analysts’ consensus estimates of $2.81 by $0.03. The business had revenue of $3.95 billion during the quarter, compared to analysts’ expectations of $4.01 billion. Arthur J. Gallagher & Co. had a net margin of 9.96% and a return on equity of 13.32%. The business’s revenue for the quarter was up 24.3% on a year-over-year basis. During the same period last year, the business earned $2.33 earnings per share. On average, sell-side analysts anticipate that Arthur J. Gallagher & Co. will post 13.22 earnings per share for the current year.

Arthur J. Gallagher & Co. Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Tuesday, September 8th will be given a $0.70 dividend. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $2.80 dividend on an annualized basis and a yield of 1.1%. Arthur J. Gallagher & Co.’s dividend payout ratio (DPR) is currently 46.43%.

Insider Activity

In other news, CAO Richard C. Cary sold 3,000 shares of the business’s stock in a transaction dated 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 transaction, the chief accounting officer directly owned 47,819 shares of the company’s stock, valued at approximately $9,850,714. The trade was a 5.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 1.40% of the company’s stock.

Institutional Trading of Arthur J. Gallagher & Co.

Several hedge funds have recently added to or reduced their stakes in AJG. Kemnay Advisory Services Inc. acquired a new position in Arthur J. Gallagher & Co. during the 4th quarter worth approximately $26,000. Rakuten Securities Inc. lifted its position in shares of Arthur J. Gallagher & Co. by 650.0% during the 2nd 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 shares of Arthur J. Gallagher & Co. during the 1st quarter worth $28,000. MV Capital Management Inc. acquired a new position in shares of Arthur J. Gallagher & Co. during the fourth quarter worth $34,000. Finally, Cassaday & Co Wealth Management LLC purchased a new position in Arthur J. Gallagher & Co. in the first quarter valued at $29,000. Institutional investors and hedge funds own 85.53% of the company’s stock.

More Arthur J. Gallagher & Co. News

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.

About Arthur J. Gallagher & Co.

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.