Arthur J. Gallagher & Co. (NYSE:AJG) Hits New 12-Month High - Still a Buy?

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $325.10 and last traded at $324.67, with a volume of 711172 shares changing hands. The stock had previously closed at $322.00.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. TD Cowen upgraded shares of Arthur J. Gallagher & Co. from a "hold" rating to a "buy" rating and boosted their target price for the company from $295.00 to $377.00 in a report on Friday, January 10th. Truist Financial boosted their target price on shares of Arthur J. Gallagher & Co. from $275.00 to $290.00 and gave the company a "hold" rating in a report on Friday, January 31st. Royal Bank of Canada boosted their target price on shares of Arthur J. Gallagher & Co. from $320.00 to $340.00 and gave the company an "outperform" rating in a report on Friday, January 31st. Keefe, Bruyette & Woods boosted their target price on shares of Arthur J. Gallagher & Co. from $286.00 to $295.00 and gave the company a "market perform" rating in a report on Friday, January 31st. Finally, Barclays boosted their target price on shares of Arthur J. Gallagher & Co. from $300.00 to $308.00 and gave the company an "equal weight" rating in a report on Thursday, November 21st. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and six have assigned a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $307.00.

Arthur J. Gallagher & Co. Stock Down 2.1 %

The firm has a market capitalization of $80.33 billion, a PE ratio of 49.32 and a beta of 0.77. The firm's 50 day moving average price is $293.94 and its two-hundred day moving average price is $291.95. The company has a quick ratio of 1.06, a current ratio of 1.51 and a debt-to-equity ratio of 0.63.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) last announced its earnings results on Thursday, January 30th. The financial services provider reported $2.13 earnings per share for the quarter, beating the consensus estimate of $2.03 by $0.10. Arthur J. Gallagher & Co. had a net margin of 12.70% and a return on equity of 16.47%. As a group, research analysts forecast that Arthur J. Gallagher & Co. will post 11.4 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 21st. Investors of record on Friday, March 7th will be issued a $0.65 dividend. The ex-dividend date is Friday, March 7th. This is a boost from Arthur J. Gallagher & Co.'s previous quarterly dividend of $0.60. This represents a $2.60 annualized dividend and a yield of 0.81%. Arthur J. Gallagher & Co.'s dividend payout ratio is currently 36.81%.

Insider Activity at Arthur J. Gallagher & Co.

In related news, Director Sherry S. Barrat sold 2,500 shares of the company's stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $304.33, for a total value of $760,825.00. Following the sale, the director now directly owns 16,533 shares of the company's stock, valued at $5,031,487.89. This represents a 13.14 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Christopher E. Mead sold 2,900 shares of the company's stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $302.61, for a total transaction of $877,569.00. Following the completion of the sale, the vice president now directly owns 14,674 shares in the company, valued at $4,440,499.14. This represents a 16.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 15,725 shares of company stock valued at $4,972,964 over the last ninety days. Corporate insiders own 1.60% of the company's stock.

Institutional Trading of Arthur J. Gallagher & Co.

A number of institutional investors and hedge funds have recently modified their holdings of the business. Allred Capital Management LLC raised its holdings in shares of Arthur J. Gallagher & Co. by 1.0% during the fourth quarter. Allred Capital Management LLC now owns 3,380 shares of the financial services provider's stock worth $960,000 after purchasing an additional 34 shares during the period. Catalina Capital Group LLC grew its position in shares of Arthur J. Gallagher & Co. by 1.0% during the fourth quarter. Catalina Capital Group LLC now owns 3,380 shares of the financial services provider's stock worth $959,000 after acquiring an additional 35 shares during the last quarter. W Advisors LLC grew its position in shares of Arthur J. Gallagher & Co. by 2.4% during the third quarter. W Advisors LLC now owns 1,514 shares of the financial services provider's stock worth $426,000 after acquiring an additional 36 shares during the last quarter. Greenleaf Trust grew its position in shares of Arthur J. Gallagher & Co. by 1.1% during the fourth quarter. Greenleaf Trust now owns 3,310 shares of the financial services provider's stock worth $940,000 after acquiring an additional 36 shares during the last quarter. Finally, HBK Sorce Advisory LLC grew its position in shares of Arthur J. Gallagher & Co. by 3.2% during the fourth quarter. HBK Sorce Advisory LLC now owns 1,173 shares of the financial services provider's stock worth $333,000 after acquiring an additional 36 shares during the last quarter. 85.53% of the stock is owned by institutional investors and hedge funds.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co engages in the provision of insurance brokerage, reinsurance brokerage, consulting, and third-party claims settlement and administration services. It operates through the following business segments: Brokerage, Risk Management, and Corporate. The Brokerage segment consists of retail and wholesale insurance brokerage operations.