Arthur J. Gallagher & Co. (AJG) Stock Price, News & Analysis

Company Overview

Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide. It operates in Brokerage and Risk Management segments. The Brokerage segment offers retail and wholesale insurance and reinsurance brokerage services; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; and acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverages to underwriting enterprises. This segment performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers services in the areas of insurance and reinsurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent brokers and consultants. It serves commercial, industrial, public, religious, and nonprofit entities, as well as underwriting enterprises. Arthur J. Gallagher & Co. was founded in 1927 and is headquartered in Rolling Meadows, Illinois.

Key Stats

• Today's Range: $290.29 to $295.61
• 50-Day Range: $276.06 to $299.55
• 52-Week Range: $218.63 to $301.04
• Volume: 728,124 shs
• Average Volume: 845,491 shs
• Market Capitalization: $64.40 billion
• P/E Ratio: 55.91
• Dividend Yield: 0.82%
• Price Target: $289.14
• Consensus Rating: Hold

Arthur J. Gallagher & Co. Stock Analysis - MarketRank™

Arthur J. Gallagher & Co. scored higher than 91% of companies evaluated by MarketBeat, and ranked 139th out of 953 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.0 / 5
• Analyst Rating: Hold

Consensus Rating

Arthur J. Gallagher & Co. has received a consensus rating of Hold. The company's average rating score is 2.07, and is based on 4 buy ratings, 7 hold ratings, and 3 sell ratings.

Amount of Analyst Coverage

Arthur J. Gallagher & Co. has been the subject of 8 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: 11.57%

Earnings Growth

Earnings for Arthur J. Gallagher & Co. are expected to grow by 11.57% in the coming year, from $10.11 to $11.28 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Arthur J. Gallagher & Co. is 55.91, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 121.66.

Price to Earnings Ratio vs. Sector

The P/E ratio of Arthur J. Gallagher & Co. is 55.91, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 36.46.

Price to Earnings Growth Ratio

Arthur J. Gallagher & Co. has a PEG Ratio of 2.51. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Arthur J. Gallagher & Co. has a P/B Ratio of 5.27. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.30% of the outstanding shares of Arthur J. Gallagher & Co. have been sold short.

Short Interest Ratio / Days to Cover

Arthur J. Gallagher & Co. has a short interest ratio ("days to cover") of 3.4, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Arthur J. Gallagher & Co. has recently increased by 1.06%, indicating that investor sentiment is decreasing.

Dividend

• Score: 3.3 / 5
• Dividend Strength: Strong

Dividend Yield

Arthur J. Gallagher & Co. has a dividend yield of 0.81%, which is in the bottom 25% of all stocks that pay dividends.

Dividend Growth

Arthur J. Gallagher & Co. has been increasing its dividend for 14 years.

Dividend Coverage

The dividend payout ratio of Arthur J. Gallagher & Co. is 45.71%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Arthur J. Gallagher & Co. will have a dividend payout ratio of 21.28% next year. This indicates that Arthur J. Gallagher & Co. will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 3.0 / 5
• Environmental Score: -0.45

Percentage of Shares Shorted

1.30% of the outstanding shares of Arthur J. Gallagher & Co. have been sold short.

Short Interest Ratio / Days to Cover

Arthur J. Gallagher & Co. has a short interest ratio ("days to cover") of 3.4, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Arthur J. Gallagher & Co. has recently increased by 1.06%, indicating that investor sentiment is decreasing.

News and Social Media

• Score: 3.6 / 5
• News Sentiment: 1.44

News Sentiment

Arthur J. Gallagher & Co. has a news sentiment score of 1.44. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.70 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 21 news articles for Arthur J. Gallagher & Co. this week, compared to 11 articles on an average week.

Search Interest

Only 2 people have searched for AJG on MarketBeat in the last 30 days. This is a decrease of -50% compared to the previous 30 days.

MarketBeat Follows

6 people have added Arthur J. Gallagher & Co. to their MarketBeat watchlist in the last 30 days. This is an increase of 200% compared to the previous 30 days.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Arthur J. Gallagher & Co. insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $6,892,280.00 in company stock.

Percentage Held by Insiders

Only 1.60% of the stock of Arthur J. Gallagher & Co. is held by insiders.

Percentage Held by Institutions

85.53% of the stock of Arthur J. Gallagher & Co. is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

AJG Stock Analysis - Frequently Asked Questions

How have AJG shares performed this year?

Arthur J. Gallagher & Co.'s stock was trading at $224.88 at the beginning of the year. Since then, AJG stock has increased by 30.5% and is now trading at $293.53.
View the best growth stocks for 2024 here.

How were Arthur J. Gallagher & Co.'s earnings last quarter?

Arthur J. Gallagher & Co. (NYSE:AJG) released its quarterly earnings data on Thursday, October, 24th. The financial services provider reported $2.26 earnings per share (EPS) for the quarter, hitting the consensus estimate of $2.26. Arthur J. Gallagher & Co.'s quarterly revenue was up 12.8% compared to the same quarter last year.
Read the conference call transcript.

Does Arthur J. Gallagher & Co. have any subsidiaries?

Arthur J. Gallagher & Co. subsidiaries include Optimum Talent, LSG Insurance Partners, The Human Capital Group, Gillis Ellis & Baker Inc., BluePeak Advisors, P2 Group, Cairnstone Financial, and more.

Who are Arthur J. Gallagher & Co.'s major shareholders?

Top institutional shareholders of Arthur J. Gallagher & Co. include FMR LLC (5.61%), State Street Corp (4.07%), Geode Capital Management LLC (2.50%) and Massachusetts Financial Services Co. MA (1.46%). Insiders that own company stock include Thomas Joseph Gallagher, Scott R Hudson, Douglas K Howell, William L Bax, David S Johnson, Richard C Cary, William F Ziebell, Patrick Murphy Gallagher, Michael Robert Pesch, Walter D Bay, Kay W Mccurdy, Sherry S Barrat, Christopher E Mead, Joel D Cavaness, Susan E Pietrucha and J Patrick Gallagher Jr.
View institutional ownership trends.

How do I buy shares of Arthur J. Gallagher & Co.?

Shares of AJG stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Arthur J. Gallagher & Co. own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Arthur J. Gallagher & Co. investors own include NVIDIA (NVDA), Humana (HUM), Meta Platforms (META), American Water Works (AWK), Broadcom (AVGO), Salesforce (CRM) and Advanced Micro Devices (AMD).

Company Calendar

• Ex-Dividend for 9/20 Dividend: 9/06/2024
• Dividend Payable: 9/20/2024
• Last Earnings: 10/24/2024
• Today: 11/18/2024
• Ex-Dividend for 12/20 Dividend: 12/06/2024
• Dividend Payable: 12/20/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 1/23/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: Insurance agents, brokers, & service
• Sub-Industry: Insurance Brokers
• Current Symbol: NYSE:AJG
• CUSIP: 36357610
• CIK: 354190
• Web: www.ajg.com
• Phone: (630) 773-3800
• Fax: 630-285-4000
• Employees: 52,000
• Year Founded: 1927

Price Target and Rating

• Average Stock Price Target: $289.14
• High Stock Price Target: $325.00
• Low Stock Price Target: $252.00
• Potential Upside/Downside: -1.5%
• Consensus Rating: Hold
• Rating Score (0-4): 2.07
• Research Coverage: 14 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $5.25
• Trailing P/E Ratio: 55.92
• Forward P/E Ratio: 29.04
• P/E Growth: 2.51
• Net Income: $969.50 million
• Net Margins: 10.40%
• Pretax Margin: 12.95%
• Return on Equity: 19.12%
• Return on Assets: 3.78%

Debt

• Debt-to-Equity Ratio: 0.64
• Current Ratio: 1.06
• Quick Ratio: 1.06

Sales & Book Value

• Annual Sales: $10.07 billion
• Price / Sales: 6.40
• Cash Flow: $12.09 per share
• Price / Cash Flow: 24.29
• Book Value: $55.65 per share
• Price / Book: 5.28

Miscellaneous

• Outstanding Shares: 219,400,000
• Free Float: 215,890,000
• Market Cap: $64.41 billion
• Optionable: Optionable
• Beta: 0.72