Arthur J. Gallagher & Co. (NYSE:AJG) was downgraded by equities research analysts at Compass Point from a “buy” rating to a “neutral” rating in a research note issued to investors on Thursday, TheFlyOnTheWall.com reports. They currently have a $50.00 price objective on the stock. Compass Point’s target price suggests a potential upside of 5.26% from the stock’s previous close.
The analysts wrote, “3Q13 earnings came in a bit light of consensus as operating margins did not improve as much as expected, and more importantly, the expected favorable net impact from the clean coal investment was lower than expected as operating costs ran higher than modeled. Our earnings estimates have built in expectations for margin improvement going forward but have increased operating expense costs associated with the clean coal operations. Our EPS estimates could increase if operating margins within both the brokerage and risk management segments improve to a greater degree than expected following recent acquisitions. In addition, the clean energy segment could surprise and generate a sizable boost to earnings. We estimate that the clean coal tax credit added $0.20 per share to 3Q13 earnings and represented approximately 36% of earnings. If brokerage operation margins don’t increase from current levels following recent acquisitions, we expect the contribution to earnings from clean coal tax credits to increase. We are lowering AJG to Neutral while maintaining our $50 price target.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Raymond James raised their price target on shares of Arthur J. Gallagher & Co. from $46.00 to $47.00 in a research note to investors on Thursday, September 5th. They now have an “outperform” rating on the stock. Separately, analysts at BMO Capital Markets initiated coverage on shares of Arthur J. Gallagher & Co. in a research note to investors on Tuesday, September 3rd. They set an “outperform” rating and a $47.00 price target on the stock. Finally, analysts at Keefe, Bruyette & Woods raised their price target on shares of Arthur J. Gallagher & Co. from $47.00 to $49.00 in a research note to investors on Tuesday, August 13th. Three analysts have rated the stock with a hold rating and five have issued a buy rating to the company. The stock has an average rating of “Buy” and an average target price of $45.75.
Arthur J. Gallagher & Co. (NYSE:AJG) traded down 0.57% during mid-day trading on Thursday, hitting $47.23. 264,261 shares of the company’s stock traded hands. Arthur J. Gallagher & Co. has a 52-week low of $34.20 and a 52-week high of $45.89. The stock has a 50-day moving average of $45.19 and a 200-day moving average of $44.10. The company has a market cap of $6.031 billion and a price-to-earnings ratio of 26.32.
Arthur J. Gallagher & Co. (NYSE:AJG) last announced its earnings results on Wednesday, October 30th. The company reported $0.57 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.62 by $0.05. The company had revenue of $835.80 million for the quarter, compared to the consensus estimate of $744.50 million. During the same quarter in the previous year, the company posted $0.52 earnings per share. The company’s revenue for the quarter was up 28.5% on a year-over-year basis. On average, analysts predict that Arthur J. Gallagher & Co. will post $2.21 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Friday, December 20th. Investors of record on Wednesday, December 4th will be paid a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 2.95%. The ex-dividend date is Monday, December 2nd.
Arthur J. Gallagher & Co, along with its subsidiaries, provides insurance brokerage and third-party claims settlement and administration services to entities in the United States and abroad.
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