Arthur J. Gallagher & Co. (NYSE:AJG) Sees Large Decline in Short Interest

Arthur J. Gallagher & Co. (NYSE:AJG) was the recipient of a significant decline in short interest during the month of February. As of February 13th, there was short interest totaling 4,948,436 shares, a decline of 13.5% from the January 29th total of 5,722,133 shares. Currently, 2.0% of the company’s stock are sold short. Based on an average trading volume of 3,449,747 shares, the days-to-cover ratio is presently 1.4 days. Based on an average trading volume of 3,449,747 shares, the days-to-cover ratio is presently 1.4 days. Currently, 2.0% of the company’s stock are sold short.

Analyst Upgrades and Downgrades

AJG has been the subject of a number of analyst reports. Jefferies Financial Group reduced their price objective on shares of Arthur J. Gallagher & Co. from $283.00 to $280.00 and set a “hold” rating for the company in a research note on Monday, February 2nd. Citigroup lifted their price objective on Arthur J. Gallagher & Co. from $277.00 to $280.00 and gave the stock a “neutral” rating in a research note on Monday, February 2nd. Cantor Fitzgerald restated a “neutral” rating on shares of Arthur J. Gallagher & Co. in a research note on Friday, January 30th. Evercore dropped their price target on Arthur J. Gallagher & Co. from $353.00 to $334.00 and set an “outperform” rating on the stock in a research report on Wednesday, December 17th. Finally, Wells Fargo & Company cut their price target on Arthur J. Gallagher & Co. from $311.00 to $298.00 and set an “overweight” rating for the company in a report on Friday, January 30th. Seven investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $281.76.

Insiders Place Their Bets

In other news, CFO Douglas K. Howell sold 5,000 shares of the stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $258.05, for a total transaction of $1,290,250.00. Following the transaction, the chief financial officer owned 95,777 shares in the company, valued at $24,715,254.85. This represents a 4.96% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Christopher E. Mead sold 4,000 shares of Arthur J. Gallagher & Co. stock in a transaction on Tuesday, December 23rd. The shares were sold at an average price of $258.11, for a total transaction of $1,032,440.00. Following the completion of the sale, the vice president directly owned 17,327 shares of the company’s stock, valued at approximately $4,472,271.97. The trade was a 18.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 24,850 shares of company stock valued at $6,364,440 over the last ninety days. Corporate insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On Arthur J. Gallagher & Co.

Several large investors have recently made changes to their positions in AJG. Parkside Financial Bank & Trust boosted its position in Arthur J. Gallagher & Co. by 6.5% in the second quarter. Parkside Financial Bank & Trust now owns 570 shares of the financial services provider’s stock valued at $182,000 after buying an additional 35 shares in the last quarter. Dorsey & Whitney Trust CO LLC grew its position in Arthur J. Gallagher & Co. by 1.4% during the 2nd quarter. Dorsey & Whitney Trust CO LLC now owns 2,623 shares of the financial services provider’s stock worth $840,000 after acquiring an additional 35 shares during the last quarter. CX Institutional increased its holdings in Arthur J. Gallagher & Co. by 2.1% during the 3rd quarter. CX Institutional now owns 1,782 shares of the financial services provider’s stock valued at $552,000 after purchasing an additional 36 shares in the last quarter. D.A. Davidson & CO. raised its position in Arthur J. Gallagher & Co. by 1.3% in the 3rd quarter. D.A. Davidson & CO. now owns 2,930 shares of the financial services provider’s stock valued at $908,000 after purchasing an additional 38 shares during the last quarter. Finally, Citizens Financial Group Inc. RI grew its holdings in shares of Arthur J. Gallagher & Co. by 1.0% during the third quarter. Citizens Financial Group Inc. RI now owns 3,958 shares of the financial services provider’s stock worth $1,226,000 after purchasing an additional 38 shares during the last quarter. Institutional investors own 85.53% of the company’s stock.

Arthur J. Gallagher & Co. Stock Performance

Shares of NYSE:AJG traded up $1.59 during trading on Wednesday, hitting $226.82. 1,435,833 shares of the stock were exchanged, compared to its average volume of 2,520,371. The company’s fifty day simple moving average is $241.87 and its 200-day simple moving average is $264.66. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.06 and a current ratio of 1.06. The company has a market capitalization of $58.32 billion, a price-to-earnings ratio of 36.88, a price-to-earnings-growth ratio of 1.11 and a beta of 0.67. Arthur J. Gallagher & Co. has a 1-year low of $195.00 and a 1-year high of $351.23.

Arthur J. Gallagher & Co. (NYSE:AJG) last posted its quarterly earnings results on Thursday, January 29th. The financial services provider reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates of $2.35 by $0.03. The firm had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.61 billion. Arthur J. Gallagher & Co. had a net margin of 11.84% and a return on equity of 12.13%. The business’s revenue was up 33.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.12 earnings per share. Sell-side analysts expect that Arthur J. Gallagher & Co. will post 11.54 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Friday, March 6th will be given a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 1.2%. This is a positive change from Arthur J. Gallagher & Co.’s previous quarterly dividend of $0.65. The ex-dividend date is Friday, March 6th. Arthur J. Gallagher & Co.’s dividend payout ratio (DPR) is currently 42.28%.

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.