Short Interest in Arthur J. Gallagher & Co. (NYSE:AJG) Grows By 26.4%

Arthur J. Gallagher & Co. (NYSE:AJG) was the target of a large increase in short interest during the month of December. As of December 31st, there was short interest totaling 4,926,285 shares, an increase of 26.4% from the December 15th total of 3,898,403 shares. Approximately 1.9% of the company’s shares are sold short. Based on an average daily trading volume, of 1,500,053 shares, the short-interest ratio is currently 3.3 days. Based on an average daily trading volume, of 1,500,053 shares, the short-interest ratio is currently 3.3 days. Approximately 1.9% of the company’s shares are sold short.

Arthur J. Gallagher & Co. Stock Performance

Arthur J. Gallagher & Co. stock traded up $2.17 during trading hours on Monday, hitting $258.32. The stock had a trading volume of 2,126,414 shares, compared to its average volume of 1,491,366. The company has a 50-day moving average of $254.11 and a two-hundred day moving average of $280.21. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.52. Arthur J. Gallagher & Co. has a fifty-two week low of $236.34 and a fifty-two week high of $351.23. The company has a market cap of $66.34 billion, a PE ratio of 38.61 and a beta of 0.67.

Arthur J. Gallagher & Co. (NYSE:AJG) last released its quarterly earnings data on Thursday, October 30th. The financial services provider reported $2.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.51 by ($0.19). The firm had revenue of $3.33 billion for the quarter, compared to the consensus estimate of $3.34 billion. Arthur J. Gallagher & Co. had a net margin of 13.58% and a return on equity of 11.98%. The business’s revenue for the quarter was up 20.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.26 earnings per share. On average, 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 disclosed a quarterly dividend, which was paid on Friday, December 19th. Stockholders of record on Friday, December 5th were issued a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Friday, December 5th. Arthur J. Gallagher & Co.’s dividend payout ratio (DPR) is presently 38.86%.

Wall Street Analysts Forecast Growth

Several brokerages have commented on AJG. Wells Fargo & Company dropped their price target on shares of Arthur J. Gallagher & Co. from $328.00 to $311.00 and set an “overweight” rating on the stock in a research note on Tuesday, January 13th. Evercore ISI lowered their price target on Arthur J. Gallagher & Co. from $353.00 to $334.00 and set an “outperform” rating on the stock in a research report on Wednesday, December 17th. UBS Group decreased their price target on shares of Arthur J. Gallagher & Co. from $329.00 to $285.00 and set a “neutral” rating on the stock in a research report on Wednesday, December 17th. Weiss Ratings restated a “hold (c+)” rating on shares of Arthur J. Gallagher & Co. in a research note on Monday, December 29th. Finally, Needham & Company LLC set a $272.00 target price on Arthur J. Gallagher & Co. in a report on Thursday, December 18th. Seven equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Arthur J. Gallagher & Co. currently has an average rating of “Hold” and a consensus target price of $290.50.

Insider Activity

In other news, General Counsel Walter D. Bay sold 15,850 shares of Arthur J. Gallagher & Co. stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $255.00, for a total value of $4,041,750.00. Following the transaction, the general counsel directly owned 79,549 shares of the company’s stock, valued at $20,284,995. The trade was a 16.61% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CAO Richard C. Cary sold 6,000 shares of the stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $261.00, for a total value of $1,566,000.00. Following the completion of the sale, the chief accounting officer owned 50,668 shares of the company’s stock, valued at approximately $13,224,348. This trade represents a 10.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 32,100 shares of company stock valued at $8,243,865 in the last 90 days. 1.60% of the stock is owned by corporate insiders.

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

Several institutional investors have recently added to or reduced their stakes in the company. Factory Mutual Insurance Co. increased its stake in shares of Arthur J. Gallagher & Co. by 107.1% during the second quarter. Factory Mutual Insurance Co. now owns 14,500 shares of the financial services provider’s stock worth $4,642,000 after purchasing an additional 7,500 shares during the period. Fairfield Financial Advisors LTD grew its holdings in Arthur J. Gallagher & Co. by 21.4% in the 2nd quarter. Fairfield Financial Advisors LTD now owns 9,961 shares of the financial services provider’s stock valued at $3,189,000 after buying an additional 1,758 shares in the last quarter. Petra Financial Advisors Inc. bought a new position in Arthur J. Gallagher & Co. during the 2nd quarter worth $812,000. Boston Partners lifted its holdings in shares of Arthur J. Gallagher & Co. by 0.4% during the second quarter. Boston Partners now owns 735,759 shares of the financial services provider’s stock worth $234,226,000 after buying an additional 2,806 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in shares of Arthur J. Gallagher & Co. by 4.2% in the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 2,381,835 shares of the financial services provider’s stock valued at $762,473,000 after acquiring an additional 94,940 shares during the period. 85.53% of the stock is owned by institutional investors.

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.