AON (NYSE:AON) Stock Rating Lowered by Wall Street Zen

AON (NYSE:AON) was downgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued on Saturday.

A number of other equities analysts have also recently commented on the stock. Mizuho lifted their price target on shares of AON from $389.00 to $426.00 and gave the stock an “outperform” rating in a research note on Thursday, July 9th. Keefe, Bruyette & Woods decreased their price objective on shares of AON from $404.00 to $400.00 and set an “outperform” rating for the company in a research note on Wednesday, July 8th. Wells Fargo & Company boosted their target price on AON from $406.00 to $419.00 and gave the company an “overweight” rating in a research report on Thursday. Roth Capital reaffirmed a “buy” rating and set a $420.00 target price on shares of AON in a research note on Friday. Finally, Cantor Fitzgerald increased their price target on AON from $416.00 to $445.00 and gave the stock an “overweight” rating in a report on Thursday, July 9th. Twelve investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $409.06.

AON Stock Up 0.0%

Shares of AON opened at $360.71 on Friday. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 1.34. The business has a fifty day moving average of $341.22 and a 200 day moving average of $331.94. The company has a market cap of $76.51 billion, a PE ratio of 19.88, a P/E/G ratio of 1.86 and a beta of 0.69. AON has a 52-week low of $304.59 and a 52-week high of $382.34.

AON (NYSE:AON) last posted its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share for the quarter, beating analysts’ consensus estimates of $3.80 by $0.01. AON had a net margin of 22.27% and a return on equity of 42.13%. The business had revenue of $4.25 billion for the quarter, compared to analysts’ expectations of $4.28 billion. During the same quarter in the previous year, the business posted $3.49 earnings per share. The business’s revenue was up 2.2% compared to the same quarter last year. On average, sell-side analysts expect that AON will post 19.09 EPS for the current year.

Insider Transactions at AON

In other AON news, General Counsel Darren Zeidel sold 1,900 shares of the business’s stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total value of $717,744.00. Following the completion of the sale, the general counsel directly owned 11,504 shares of the company’s stock, valued at $4,345,751.04. The trade was a 14.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Over the last three months, insiders have sold 4,450 shares of company stock valued at $1,659,242. 1.00% of the stock is owned by insiders.

Institutional Trading of AON

Large investors have recently modified their holdings of the company. Aviva PLC increased its position in AON by 2.0% during the 4th quarter. Aviva PLC now owns 333,454 shares of the financial services provider’s stock valued at $117,669,000 after purchasing an additional 6,622 shares during the period. Mirae Asset Global Investments Co. Ltd. lifted its position in shares of AON by 21.0% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 37,552 shares of the financial services provider’s stock worth $13,251,000 after purchasing an additional 6,509 shares during the period. Handelsbanken Fonder AB boosted its stake in shares of AON by 9.1% during the fourth quarter. Handelsbanken Fonder AB now owns 67,034 shares of the financial services provider’s stock valued at $23,655,000 after purchasing an additional 5,585 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in AON by 1,864.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 343,754 shares of the financial services provider’s stock valued at $121,304,000 after buying an additional 326,256 shares during the period. Finally, Highland Capital Management LLC bought a new position in AON in the fourth quarter worth approximately $1,359,000. Hedge funds and other institutional investors own 86.14% of the company’s stock.

Key Stories Impacting AON

Here are the key news stories impacting AON this week:

• Positive Sentiment: Aon reported second-quarter adjusted earnings of $3.81 per share, narrowly above the $3.80 consensus and up from $3.49 a year earlier. Organic revenue growth reached 5%, while operating margins expanded and management reaffirmed its full-year guidance. Aon Q2 results and guidance
• Positive Sentiment: Growth in reinsurance and property-and-casualty businesses, combined with a record pace of share repurchases, strengthened the company’s capital-return story. Aon also declared a quarterly dividend of $0.82 per share. Aon buyback and Q2 growth
• Positive Sentiment: Citigroup raised its price target to $435 from $420 with a Buy rating, and Wells Fargo increased its target to $419 from $406 with an Overweight rating, signaling continued confidence in Aon’s longer-term earnings outlook.
• Neutral Sentiment: Revenue rose 2.2% year over year to $4.25 billion but missed the $4.28 billion estimate. Higher expenses and lower interest income limited the benefit from organic growth and acquisitions, leaving investors focused on whether revenue growth can accelerate.
• Neutral Sentiment: Aon said severe weather across the U.S. Midwest—including wind, hail and tornadoes—could rank among the top 10 costliest severe-weather events. The company also expects losses from the July Japan earthquake to be below those from the 2016 Kumamoto earthquake; these developments highlight insurance-market activity but have limited direct earnings impact for Aon.
• Negative Sentiment: General Counsel Darren Zeidel sold 1,900 shares for approximately $718,000, following additional sales earlier in July. Although he retains a sizable position, the repeated insider selling may weigh modestly on sentiment. Aon insider sale
• Negative Sentiment: WTW reported faster growth in its broking arm than Aon, Marsh and Gallagher, underscoring competitive pressure in Aon’s core brokerage market. WTW broking growth comparison

About AON

Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.

In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.