Korea Investment Corp has reduced its holdings in Arthur J. Gallagher & Co. (NYSE: AJG) by 1.7%, as indicated in its recent Form 13F filing with the Securities and Exchange Commission. The firm now owns 141,675 shares of the insurance brokerage and risk management company after selling 2,412 shares during the second quarter. This stake is valued at approximately $45.35 million, representing about 0.06% of the company.
Several other institutional investors have also adjusted their positions in Arthur J. Gallagher & Co. Menard Financial Group LLC increased its stake by 0.8% in the first quarter, now holding 3,812 shares worth $1.29 million after acquiring an additional 32 shares. SeaCrest Wealth Management LLC raised its holdings by 2.3%, totaling 1,542 shares valued at $494,000 after purchasing 34 shares in the last quarter.
Ashton Thomas Private Wealth LLC and Contravisory Investment Management Inc. also increased their stakes by 1.3% and 0.6%, respectively. Tritonpoint Wealth LLC grew its holdings by 1.1% in the same period. Overall, institutional investors own approximately 85.53% of Arthur J. Gallagher & Co.’s stock.
Insider Transactions and Recent Performance
In notable insider trading, Chief Financial Officer Douglas K. Howell sold 8,000 shares on September 22, 2023, at an average price of $299.54, totaling $2.4 million. Post-sale, Howell’s direct ownership consists of 100,777 shares, valued at around $30.19 million, marking a 7.35% decrease in his stock ownership. Conversely, Vice President Michael Robert Pesch acquired 4,000 shares on November 3, 2023, for an average of $247.12 each, amounting to $988,480. Following this purchase, his holdings increased to 41,849 shares, valued at roughly $10.34 million.
Over the past ninety days, insiders have sold a total of 37,105 shares, valued at $10.8 million. Currently, company insiders hold approximately 1.60% of the stock.
Arthur J. Gallagher & Co. reported its quarterly earnings on October 30, 2023, revealing earnings per share of $2.32, which fell short of analyst expectations of $2.51 by $0.19. The company generated revenue of $3.33 billion, slightly below the forecast of $3.34 billion. Notably, the firm experienced a year-over-year revenue increase of 20.2% compared to the same quarter last year, when earnings per share were $2.26.
Dividend Announcement and Analyst Ratings
Arthur J. Gallagher & Co. also declared a quarterly dividend of $0.65 per share, scheduled for payment on December 19, 2023. Shareholders of record on December 5, 2023, will be eligible for this dividend, which represents an annualized total of $2.60 and a yield of 1.0%. The company’s dividend payout ratio currently stands at 38.86%.
Several analysts have recently revised their ratings and price targets for Arthur J. Gallagher & Co. Piper Sandler downgraded its price target from $340.00 to $295.00 while maintaining an “overweight” rating. Wolfe Research initiated coverage with an “outperform” rating and a target price of $291.00. The Goldman Sachs Group lowered its target from $361.00 to $315.00 with a “buy” recommendation, while Wells Fargo & Company slightly raised their target to $366.00.
Overall, the stock is rated as a “Moderate Buy” by analysts, with one strong buy, eight buys, eight holds, and one sell recommendation. The consensus price target stands at $316.33.
Arthur J. Gallagher & Co. specializes in insurance brokerage, reinsurance brokerage, consulting, and claims management services, operating through various segments, including Brokerage, Risk Management, and Corporate.
