Arthur J. Gallagher & Co. (NYSE:AJG) Stock Rating Lowered by Zacks Investment Research

Arthur J. Gallagher & Co. (NYSE:AJGGet Rating) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports. They currently have a $171.00 price objective on the financial services provider’s stock. Zacks Investment Research‘s price target indicates a potential upside of 5.04% from the company’s current price.

According to Zacks, “Shares of Arthur J. Gallagher have outperformed its industry in a year. The company is likely to continue benefiting from solid organic growth, which have been driving revenues. Sturdy performance across its Brokerage and Risk Management segments also bode well. The company expects organic revenues in Risk Management and Brokerage segment to be better than 2021 level. Its focus on tapping opportunities across the globe bodes well for growth. Its inorganic growth story seems impressive with strategic buyouts. Its solid performance is driving cash flow and helping it to deploy capital in shareholder-friendly moves. However, escalating expenses weigh on the company’s margin expansion. Also, high debt level induces higher interest expenses and low times interest earned concerns. Lower return on equity poses financial risk for the company.”

A number of other brokerages have also weighed in on AJG. StockNews.com began coverage on Arthur J. Gallagher & Co. in a research note on Thursday, March 31st. They set a “hold” rating on the stock. Wells Fargo & Company upped their target price on Arthur J. Gallagher & Co. from $193.00 to $209.00 and gave the company an “overweight” rating in a research report on Tuesday, April 12th. Morgan Stanley dropped their target price on Arthur J. Gallagher & Co. from $171.00 to $162.00 and set an “equal weight” rating on the stock in a research report on Monday, May 23rd. Truist Financial upped their target price on Arthur J. Gallagher & Co. from $200.00 to $205.00 and gave the company a “buy” rating in a research report on Wednesday, April 6th. Finally, UBS Group initiated coverage on Arthur J. Gallagher & Co. in a research report on Monday, April 18th. They issued a “neutral” rating and a $192.00 target price on the stock. Seven analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average price target of $175.25.

NYSE AJG traded up $0.80 on Tuesday, reaching $162.80. 4,599 shares of the stock were exchanged, compared to its average volume of 873,390. Arthur J. Gallagher & Co. has a one year low of $135.50 and a one year high of $187.02. The firm has a market capitalization of $34.20 billion, a PE ratio of 35.82, a PEG ratio of 2.00 and a beta of 0.70. The company’s 50-day simple moving average is $169.47 and its two-hundred day simple moving average is $164.19. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.64.

Arthur J. Gallagher & Co. (NYSE:AJGGet Rating) last posted its quarterly earnings data on Thursday, April 28th. The financial services provider reported $2.81 EPS for the quarter, topping the consensus estimate of $2.77 by $0.04. Arthur J. Gallagher & Co. had a net margin of 11.41% and a return on equity of 15.45%. The company had revenue of $2.40 billion during the quarter, compared to analyst estimates of $2.40 billion. During the same period in the previous year, the firm earned $2.02 earnings per share. Arthur J. Gallagher & Co.’s quarterly revenue was up 12.7% compared to the same quarter last year. Sell-side analysts forecast that Arthur J. Gallagher & Co. will post 7.79 earnings per share for the current fiscal year.

In other Arthur J. Gallagher & Co. news, General Counsel Walter D. Bay sold 7,500 shares of the business’s stock in a transaction dated Wednesday, March 16th. The stock was sold at an average price of $162.00, for a total transaction of $1,215,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Scott R. Hudson sold 42,600 shares of the company’s stock in a transaction dated Wednesday, March 9th. The stock was sold at an average price of $158.03, for a total value of $6,732,078.00. The disclosure for this sale can be found here. Over the last three months, insiders sold 64,100 shares of company stock valued at $10,171,538. Insiders own 1.40% of the company’s stock.

A number of hedge funds have recently modified their holdings of AJG. Verition Fund Management LLC bought a new stake in shares of Arthur J. Gallagher & Co. during the 1st quarter worth $259,000. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of Arthur J. Gallagher & Co. by 17.3% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 35,289 shares of the financial services provider’s stock valued at $6,162,000 after purchasing an additional 5,213 shares in the last quarter. M Holdings Securities Inc. purchased a new stake in shares of Arthur J. Gallagher & Co. in the first quarter valued at $454,000. Reynolds Investment Management Inc. purchased a new stake in shares of Arthur J. Gallagher & Co. in the first quarter valued at $600,000. Finally, Advisory Services Network LLC lifted its holdings in shares of Arthur J. Gallagher & Co. by 6.8% in the first quarter. Advisory Services Network LLC now owns 5,826 shares of the financial services provider’s stock valued at $1,018,000 after purchasing an additional 370 shares in the last quarter. 84.18% of the stock is owned by institutional investors and hedge funds.

About Arthur J. Gallagher & Co. (Get Rating)

Arthur J. Gallagher & Co, together with its subsidiaries, provides insurance brokerage, consulting, third-party claims settlement, and administration services in the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, India, and the United Kingdom. It operates through Brokerage and Risk Management segments.

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