Arthur J Gallagher & Co (NYSE:AJG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday, January 2nd.
According to Zacks, “Shares of Arthur J. Gallagher have outperformed the industry, in a year's time. But, the company did not witness any earnings momentum for its 2018 estimate in the last 60 days. Nonetheless, 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, ecalating expenses and weak commercial P&C rates pose concerns. Adverse foreign exchange also will weigh on results.”
Other equities analysts have also recently issued reports about the company. Barclays raised their target price on Arthur J Gallagher & Co from $68.00 to $70.00 and gave the company an “overweight” rating in a report on Monday, October 16th. Royal Bank of Canada reaffirmed a “hold” rating and issued a $59.00 price target on shares of Arthur J Gallagher & Co in a research report on Tuesday, October 10th. Deutsche Bank lowered Arthur J Gallagher & Co from a “buy” rating to a “hold” rating and set a $64.00 price target on the stock. in a research report on Wednesday, October 4th. Wells Fargo & Co set a $74.00 price target on Arthur J Gallagher & Co and gave the company a “buy” rating in a research report on Friday, December 8th. Finally, ValuEngine lowered Arthur J Gallagher & Co from a “buy” rating to a “hold” rating in a research report on Friday, December 1st. Six analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus price target of $68.11.
Arthur J Gallagher & Co (NYSE:AJG) traded up $0.02 during midday trading on Tuesday, hitting $63.65. The stock had a trading volume of 487,287 shares, compared to its average volume of 862,667. The stock has a market cap of $11,490.00, a PE ratio of 25.46, a PEG ratio of 1.91 and a beta of 1.23. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.66. Arthur J Gallagher & Co has a fifty-two week low of $51.96 and a fifty-two week high of $67.32.
Arthur J Gallagher & Co (NYSE:AJG) last released its quarterly earnings results on Thursday, October 26th. The financial services provider reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.79 by $0.02. Arthur J Gallagher & Co had a return on equity of 13.56% and a net margin of 7.62%. The business had revenue of $1.58 billion during the quarter, compared to analysts’ expectations of $1.60 billion. During the same period in the prior year, the business posted $0.77 EPS. The company’s revenue was up 6.9% compared to the same quarter last year. analysts expect that Arthur J Gallagher & Co will post 2.99 EPS for the current fiscal year.
In other Arthur J Gallagher & Co news, VP Scott R. Hudson sold 7,600 shares of Arthur J Gallagher & Co stock in a transaction that occurred on Friday, December 8th. The stock was sold at an average price of $65.29, for a total transaction of $496,204.00. Following the transaction, the vice president now owns 25,027 shares of the company’s stock, valued at $1,634,012.83. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Frank E. Jr. English sold 1,500 shares of Arthur J Gallagher & Co stock in a transaction that occurred on Friday, November 3rd. The stock was sold at an average price of $63.67, for a total value of $95,505.00. Following the transaction, the director now directly owns 10,600 shares in the company, valued at approximately $674,902. The disclosure for this sale can be found here. Insiders own 1.60% of the company’s stock.
Several hedge funds have recently made changes to their positions in the business. Invictus RG purchased a new stake in Arthur J Gallagher & Co during the third quarter worth $130,000. Pacer Advisors Inc. raised its holdings in shares of Arthur J Gallagher & Co by 8.2% in the second quarter. Pacer Advisors Inc. now owns 3,437 shares of the financial services provider’s stock worth $197,000 after acquiring an additional 261 shares during the last quarter. Eagle Boston Investment Management Inc. acquired a new position in Arthur J Gallagher & Co in the third quarter valued at $201,000. Coldstream Capital Management Inc. acquired a new position in Arthur J Gallagher & Co in the second quarter valued at $202,000. Finally, Doyle Wealth Management acquired a new position in Arthur J Gallagher & Co in the third quarter valued at $203,000. Institutional investors own 82.47% of the company’s stock.
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About Arthur J Gallagher & Co
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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