Arthur J. Gallagher & Co. (NYSE:AJG) Trading Down 6.9% – Should You Sell?

Arthur J. Gallagher & Co. (NYSE:AJG) shares dropped 6.9% during trading on Tuesday . The stock traded as low as $241.97 and last traded at $237.8710. Approximately 384,961 shares traded hands during trading, a decline of 79% from the average daily volume of 1,837,751 shares. The stock had previously closed at $255.41.

Wall Street Analyst Weigh In

Several research firms recently commented on AJG. Wells Fargo & Company dropped their price objective on Arthur J. Gallagher & Co. from $328.00 to $311.00 and set an “overweight” rating on the stock in a research report on Tuesday, January 13th. Barclays decreased their price objective on shares of Arthur J. Gallagher & Co. from $250.00 to $247.00 and set an “underweight” rating for the company in a report on Thursday, January 8th. Evercore ISI dropped their target price on shares of Arthur J. Gallagher & Co. from $353.00 to $334.00 and set an “outperform” rating on the stock in a report on Wednesday, December 17th. Citigroup decreased their target price on shares of Arthur J. Gallagher & Co. from $330.00 to $277.00 and set a “neutral” rating for the company in a research note on Monday, November 3rd. Finally, Mizuho set a $277.00 price target on Arthur J. Gallagher & Co. in a research note on Wednesday, January 14th. Seven analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $290.50.

Arthur J. Gallagher & Co. Trading Down 5.8%

The stock has a fifty day moving average of $253.68 and a 200 day moving average of $278.02. 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 $61.77 billion, a P/E ratio of 35.96 and a beta of 0.67.

Arthur J. Gallagher & Co. (NYSE:AJG) last posted its quarterly earnings data on Thursday, October 30th. The financial services provider reported $2.32 earnings per share for the quarter, missing analysts’ consensus estimates of $2.51 by ($0.19). The company had revenue of $3.33 billion for the quarter, compared to analysts’ expectations of $3.34 billion. Arthur J. Gallagher & Co. had a net margin of 13.58% and a return on equity of 11.98%. The firm’s quarterly revenue was up 20.2% on a year-over-year basis. During the same period in the previous year, the firm earned $2.26 earnings per share. As a group, equities research analysts anticipate that Arthur J. Gallagher & Co. will post 11.54 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, December 19th. Investors of record on Friday, December 5th were paid a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Friday, December 5th. Arthur J. Gallagher & Co.’s dividend payout ratio (DPR) is 38.86%.

Insiders Place Their Bets

In related news, General Counsel Walter D. Bay sold 15,850 shares of the firm’s stock in a transaction on Friday, December 19th. The shares were sold at an average price of $255.00, for a total transaction of $4,041,750.00. Following the completion of the transaction, the general counsel directly owned 79,549 shares of the company’s stock, valued at approximately $20,284,995. This trade represents a 16.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Michael Robert Pesch acquired 4,000 shares of the company’s stock in a transaction on Monday, November 3rd. The shares were bought at an average cost of $247.12 per share, with a total value of $988,480.00. Following the acquisition, the vice president directly owned 41,849 shares in the company, valued at approximately $10,341,724.88. The trade was a 10.57% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders sold a total of 32,100 shares of company stock worth $8,243,865 over the last ninety days. 1.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Arthur J. Gallagher & Co.

Institutional investors have recently added to or reduced their stakes in the company. Physician Wealth Advisors Inc. boosted its position in shares of Arthur J. Gallagher & Co. by 870.0% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 97 shares of the financial services provider’s stock valued at $30,000 after acquiring an additional 87 shares during the last quarter. J.Safra Asset Management Corp lifted its position in Arthur J. Gallagher & Co. by 209.1% during the second quarter. J.Safra Asset Management Corp now owns 102 shares of the financial services provider’s stock valued at $32,000 after purchasing an additional 69 shares during the last quarter. Rakuten Securities Inc. increased its holdings in shares of Arthur J. Gallagher & Co. by 650.0% in the 2nd quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider’s stock worth $34,000 after buying an additional 91 shares during the last quarter. Financial Life Planners bought a new position in shares of Arthur J. Gallagher & Co. in the 3rd quarter valued at about $39,000. Finally, Central Pacific Bank Trust Division grew its position in Arthur J. Gallagher & Co. by 40.6% in the third quarter. Central Pacific Bank Trust Division now owns 135 shares of the financial services provider’s stock worth $42,000 after acquiring an additional 39 shares in the last quarter. Hedge funds and other institutional investors own 85.53% of the company’s stock.

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.