Arthur J. Gallagher & Co. (NYSE:AJG) Sees Unusually-High Trading Volume – Here’s Why

Arthur J. Gallagher & Co. (NYSE:AJG) shares saw strong trading volume on Tuesday . 3,041,015 shares were traded during mid-day trading, an increase of 248% from the previous session’s volume of 873,522 shares.The stock last traded at $283.85 and had previously closed at $291.85.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on AJG shares. Piper Sandler upped their price objective on shares of Arthur J. Gallagher & Co. from $254.00 to $293.00 and gave the stock a “neutral” rating in a report on Friday, September 20th. Truist Financial increased their price objective on Arthur J. Gallagher & Co. from $265.00 to $275.00 and gave the company a “hold” rating in a report on Friday, September 20th. TD Cowen upped their target price on Arthur J. Gallagher & Co. from $273.00 to $288.00 and gave the stock a “hold” rating in a research report on Tuesday, August 13th. The Goldman Sachs Group lowered shares of Arthur J. Gallagher & Co. from a “buy” rating to a “neutral” rating and set a $313.00 price target on the stock. in a research report on Monday, November 25th. Finally, Barclays upped their price objective on shares of Arthur J. Gallagher & Co. from $300.00 to $308.00 and gave the stock an “equal weight” rating in a report on Thursday, November 21st. Three analysts have rated the stock with a sell rating, eight have issued a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat, Arthur J. Gallagher & Co. currently has a consensus rating of “Hold” and an average target price of $291.64.

Arthur J. Gallagher & Co. Trading Down 1.4 %

The business has a 50-day moving average of $293.62 and a two-hundred day moving average of $281.35. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.64. The firm has a market capitalization of $63.16 billion, a price-to-earnings ratio of 55.59, a P/E/G ratio of 2.53 and a beta of 0.74.

Arthur J. Gallagher & Co. (NYSE:AJG) last issued its earnings results on Thursday, October 24th. The financial services provider reported $2.26 EPS for the quarter, meeting analysts’ consensus estimates of $2.26. Arthur J. Gallagher & Co. had a return on equity of 19.12% and a net margin of 10.40%. The business had revenue of $2.77 billion during the quarter, compared to analyst estimates of $2.78 billion. During the same period in the prior year, the company posted $2.00 earnings per share. Arthur J. Gallagher & Co.’s revenue was up 12.8% on a year-over-year basis. Research analysts predict that Arthur J. Gallagher & Co. will post 10.12 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 20th. Stockholders of record on Friday, December 6th will be given a dividend of $0.60 per share. The ex-dividend date of this dividend is Friday, December 6th. This represents a $2.40 annualized dividend and a dividend yield of 0.83%. Arthur J. Gallagher & Co.’s dividend payout ratio (DPR) is currently 45.71%.

Insider Buying and Selling

In related news, VP Christopher E. Mead sold 2,800 shares of the stock in a transaction dated Monday, October 28th. The shares were sold at an average price of $287.00, for a total transaction of $803,600.00. Following the completion of the sale, the vice president now owns 14,674 shares in the company, valued at $4,211,438. This trade represents a 16.02 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, President Michael Robert Pesch sold 7,100 shares of the business’s stock in a transaction dated Friday, September 13th. The shares were sold at an average price of $296.20, for a total transaction of $2,103,020.00. Following the completion of the transaction, the president now owns 33,267 shares in the company, valued at approximately $9,853,685.40. This trade represents a 17.59 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 23,900 shares of company stock valued at $6,892,280 over the last quarter. Corporate insiders own 1.60% of the company’s stock.

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

Institutional investors and hedge funds have recently bought and sold shares of the business. DekaBank Deutsche Girozentrale raised its holdings in shares of Arthur J. Gallagher & Co. by 15.7% in the third quarter. DekaBank Deutsche Girozentrale now owns 109,639 shares of the financial services provider’s stock valued at $30,450,000 after buying an additional 14,860 shares during the last quarter. MML Investors Services LLC raised its stake in shares of Arthur J. Gallagher & Co. by 1.2% in the third quarter. MML Investors Services LLC now owns 183,857 shares of the financial services provider’s stock worth $51,732,000 after acquiring an additional 2,092 shares during the last quarter. MQS Management LLC bought a new stake in shares of Arthur J. Gallagher & Co. during the third quarter valued at approximately $749,000. World Investment Advisors LLC acquired a new stake in shares of Arthur J. Gallagher & Co. in the third quarter valued at approximately $22,538,000. Finally, BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp raised its position in Arthur J. Gallagher & Co. by 29.9% in the 2nd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 161,028 shares of the financial services provider’s stock worth $41,756,000 after purchasing an additional 37,070 shares during the last quarter. Institutional investors and hedge funds own 85.53% of the company’s stock.

About Arthur J. Gallagher & Co.

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.