AON (NYSE:AON) Sets New 12-Month Low After Earnings Miss

Shares of Aon plc (NYSE:AON) hit a new 52-week low on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $268.06 and last traded at $277.16, with a volume of 730889 shares. The stock had previously closed at $306.00.

The financial services provider reported $5.66 earnings per share for the quarter, missing the consensus estimate of $5.86 by ($0.20). AON had a net margin of 19.17% and a negative return on equity of 1,150.40%. The firm had revenue of $4.07 billion for the quarter, compared to the consensus estimate of $4.14 billion. During the same period in the prior year, the business earned $5.17 EPS. The company’s quarterly revenue was up 5.1% compared to the same quarter last year.

AON Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 15th. Investors of record on Wednesday, May 1st will be issued a $0.675 dividend. This is an increase from AON’s previous quarterly dividend of $0.62. This represents a $2.70 dividend on an annualized basis and a dividend yield of 0.95%. The ex-dividend date is Tuesday, April 30th. AON’s payout ratio is presently 19.71%.

Analyst Ratings Changes

Several research analysts have issued reports on the stock. Morgan Stanley lifted their price target on shares of AON from $325.00 to $327.00 and gave the stock an “equal weight” rating in a research report on Monday, April 15th. Piper Sandler upped their target price on AON from $306.00 to $326.00 and gave the company a “neutral” rating in a report on Monday, February 12th. Royal Bank of Canada dropped their price target on AON from $342.00 to $325.00 and set a “sector perform” rating on the stock in a research note on Monday, February 5th. Keefe, Bruyette & Woods raised their target price on shares of AON from $294.00 to $312.00 and gave the stock an “underperform” rating in a report on Wednesday, April 10th. Finally, JPMorgan Chase & Co. boosted their price target on shares of AON from $318.00 to $353.00 and gave the company an “overweight” rating in a report on Monday, April 8th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating to the company. Based on data from MarketBeat, AON presently has a consensus rating of “Hold” and an average target price of $334.69.

Insider Buying and Selling at AON

In other AON news, insider Michael Neller sold 750 shares of AON stock in a transaction on Thursday, February 15th. The shares were sold at an average price of $312.00, for a total transaction of $234,000.00. Following the completion of the sale, the insider now owns 3,869 shares of the company’s stock, valued at approximately $1,207,128. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In related news, CFO Christa Davies sold 20,618 shares of the firm’s stock in a transaction that occurred on Monday, February 12th. The shares were sold at an average price of $311.40, for a total transaction of $6,420,445.20. Following the transaction, the chief financial officer now owns 159,570 shares of the company’s stock, valued at $49,690,098. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Michael Neller sold 750 shares of AON stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $312.00, for a total transaction of $234,000.00. Following the completion of the sale, the insider now owns 3,869 shares of the company’s stock, valued at $1,207,128. The disclosure for this sale can be found here. In the last quarter, insiders have sold 74,532 shares of company stock worth $23,335,805. 1.15% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Handelsbanken Fonder AB raised its holdings in AON by 2.9% during the third quarter. Handelsbanken Fonder AB now owns 46,328 shares of the financial services provider’s stock valued at $15,020,000 after buying an additional 1,300 shares in the last quarter. Ballentine Partners LLC lifted its holdings in AON by 2.1% in the 3rd quarter. Ballentine Partners LLC now owns 1,867 shares of the financial services provider’s stock worth $605,000 after purchasing an additional 39 shares during the last quarter. Valeo Financial Advisors LLC boosted its position in AON by 19.1% during the third quarter. Valeo Financial Advisors LLC now owns 2,431 shares of the financial services provider’s stock worth $788,000 after purchasing an additional 390 shares during the period. Borer Denton & Associates Inc. grew its holdings in AON by 0.5% during the third quarter. Borer Denton & Associates Inc. now owns 32,255 shares of the financial services provider’s stock valued at $10,458,000 after purchasing an additional 150 shares during the last quarter. Finally, Trinity Street Asset Management LLP raised its position in shares of AON by 3.0% in the third quarter. Trinity Street Asset Management LLP now owns 56,225 shares of the financial services provider’s stock valued at $18,229,000 after purchasing an additional 1,618 shares during the period. Institutional investors own 86.14% of the company’s stock.

AON Price Performance

The stock’s 50 day moving average price is $317.11 and its two-hundred day moving average price is $314.06. The firm has a market capitalization of $56.58 billion, a price-to-earnings ratio of 22.84, a PEG ratio of 1.85 and a beta of 0.86.

AON Company Profile

Aon plc, a professional services firm, provides a range of risk and human capital solutions worldwide. It offers commercial risk solutions, including retail brokerage, specialty solutions, global risk consulting and captives management, and affinity programs; and health solutions, such as health and benefits brokerages, and health care exchanges.