Mizuho Issues Positive Forecast for Arthur J. Gallagher & Co. (NYSE:AJG) Stock Price

Arthur J. Gallagher & Co. (NYSE:AJG) had its price objective lifted by Mizuho from $287.00 to $300.00 in a research note published on Friday morning,Benzinga reports. Mizuho currently has an outperform rating on the financial services provider’s stock.

Several other equities analysts have also issued reports on the stock. Cantor Fitzgerald lifted their target price on shares of Arthur J. Gallagher & Co. from $285.00 to $300.00 and gave the company a “neutral” rating in a report on Thursday, July 9th. Jefferies Financial Group upgraded Arthur J. Gallagher & Co. from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $235.00 to $265.00 in a report on Thursday, June 11th. Wells Fargo & Company increased their price target on Arthur J. Gallagher & Co. from $271.00 to $299.00 and gave the company an “overweight” rating in a report on Thursday, July 9th. Truist Financial raised their target price on Arthur J. Gallagher & Co. from $225.00 to $265.00 and gave the stock a “hold” rating in a research report on Friday. Finally, Keefe, Bruyette & Woods upped their price target on shares of Arthur J. Gallagher & Co. from $261.00 to $271.00 and gave the company a “market perform” rating in a research report on Friday. Thirteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $285.29.

Arthur J. Gallagher & Co. Stock Down 2.8%

NYSE:AJG opened at $249.35 on Friday. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.06 and a quick ratio of 1.06. The firm’s 50-day moving average price is $231.67 and its 200-day moving average price is $225.08. The company has a market capitalization of $64.06 billion, a PE ratio of 41.35, a P/E/G ratio of 1.33 and a beta of 0.50. Arthur J. Gallagher & Co. has a 1-year low of $190.75 and a 1-year high of $313.55.

Arthur J. Gallagher & Co. (NYSE:AJG) last issued its quarterly earnings results on Thursday, July 30th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.81 by $0.03. The company had revenue of $3.95 billion during the quarter, compared to analysts’ expectations of $4.01 billion. Arthur J. Gallagher & Co. had a net margin of 9.96% and a return on equity of 13.32%. Arthur J. Gallagher & Co.’s revenue was up 24.3% on a year-over-year basis. During the same period last year, the company posted $2.33 EPS. On average, equities analysts predict that Arthur J. Gallagher & Co. will post 13.22 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Tuesday, September 8th will be issued a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Tuesday, September 8th. Arthur J. Gallagher & Co.’s dividend payout ratio (DPR) is currently 46.43%.

Insiders Place Their Bets

In related news, CAO Richard C. Cary sold 3,000 shares of Arthur J. Gallagher & Co. stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $206.00, for a total transaction of $618,000.00. Following the transaction, the chief accounting officer directly owned 47,819 shares in the company, valued at approximately $9,850,714. The trade was a 5.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.40% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Kemnay Advisory Services Inc. purchased a new position in shares of Arthur J. Gallagher & Co. during the 4th quarter valued at about $26,000. Rakuten Securities Inc. increased its holdings in 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 acquiring an additional 91 shares in the last quarter. Axiom Investment Management LLC purchased a new stake in Arthur J. Gallagher & Co. in the 1st quarter worth approximately $28,000. MV Capital Management Inc. bought a new stake in Arthur J. Gallagher & Co. during the 4th quarter worth approximately $34,000. Finally, Cassaday & Co Wealth Management LLC purchased a new position in Arthur J. Gallagher & Co. during the first quarter valued at approximately $29,000. Institutional investors own 85.53% of the company’s stock.

Key Arthur J. Gallagher & Co. News

Here are the key news stories impacting Arthur J. Gallagher & Co. this week:

• Positive Sentiment: Second-quarter adjusted earnings were $2.84 per share, exceeding the $2.81 analyst consensus and rising from $2.33 a year earlier. Revenue increased 24.3% year over year to approximately $3.95 billion, supported by acquisitions and 6% organic growth across the Brokerage and Risk Management segments. Arthur J. Gallagher quarterly earnings report
• Positive Sentiment: Analysts raised their outlooks following the earnings release. RBC lifted its price target to $310 from $300 and retained an Outperform rating, while Mizuho raised its target to $300 from $287 and also maintained Outperform. William Blair reaffirmed its Buy rating, citing cash EPS growth, resilient brokerage performance and potential upside from mergers and acquisitions. William Blair Buy rating reaffirmed
• Positive Sentiment: Gallagher repurchased roughly 900,000 shares for about $170 million during the quarter and declared a quarterly dividend of $0.70 per share, providing additional shareholder returns. Arthur J. Gallagher second-quarter results
• Neutral Sentiment: Truist raised its target to $265 but kept a Hold rating, while Keefe, Bruyette & Woods increased its target to $271 and maintained Market Perform. The mixed ratings suggest analysts see valuation and execution risks despite longer-term growth potential. Analyst price-target changes
• Negative Sentiment: Revenue fell short of the approximately $4.01 billion consensus estimate as higher expenses and lower interest income offset otherwise strong operating growth. Reported net earnings declined to $324 million from $368 million a year earlier, while reported diluted EPS fell to $1.25 from $1.40. These results likely explain why the stock has decreased despite the adjusted EPS beat. AJG second-quarter earnings analysis
• Negative Sentiment: Investors remain concerned that acquisitions are contributing more to headline growth while insurance-broker organic growth could moderate. With AJG trading at a relatively high earnings multiple, the revenue miss and profitability pressure may have prompted profit-taking after the results.

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.