Short Interest in Arthur J. Gallagher & Co. (NYSE:AJG) Rises By 27.7%

Arthur J. Gallagher & Co. (NYSE:AJG) was the target of a significant growth in short interest during the month of December. As of December 31st, there was short interest totalling 9,370,000 shares, a growth of 27.7% from the December 15th total of 7,340,000 shares. Based on an average trading volume of 1,730,000 shares, the short-interest ratio is currently 5.4 days.

Arthur J. Gallagher & Co. Stock Performance

Arthur J. Gallagher & Co. stock traded down $0.57 during midday trading on Friday, reaching $295.22. The stock had a trading volume of 1,261,458 shares, compared to its average volume of 2,133,369. The firm has a market capitalization of $73.75 billion, a PE ratio of 56.23 and a beta of 0.76. Arthur J. Gallagher & Co. has a 12 month low of $227.08 and a 12 month high of $316.72. 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’s 50-day moving average price is $291.99 and its 200 day moving average price is $286.67.

Arthur J. Gallagher & Co. (NYSE:AJG) last issued its earnings results on Thursday, October 24th. The financial services provider reported $2.26 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $2.26. The business had revenue of $2.77 billion for the quarter, compared to analysts’ expectations of $2.78 billion. Arthur J. Gallagher & Co. had a net margin of 10.40% and a return on equity of 19.12%. The business’s revenue for the quarter was up 12.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.00 EPS. As a group, research analysts predict that Arthur J. Gallagher & Co. will post 10.06 earnings per share for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 20th. Investors of record on Friday, December 6th were issued a dividend of $0.60 per share. The ex-dividend date of this dividend was Friday, December 6th. This represents a $2.40 dividend on an annualized basis and a yield of 0.81%. Arthur J. Gallagher & Co.’s dividend payout ratio (DPR) is 45.71%.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. TD Cowen raised shares of Arthur J. Gallagher & Co. from a “hold” rating to a “buy” rating and lifted their price target for the company from $295.00 to $377.00 in a research note on Friday, January 10th. Bank of America upped their target price on Arthur J. Gallagher & Co. from $271.00 to $293.00 and gave the stock an “underperform” rating in a research report on Thursday, October 10th. Barclays lifted their price target on shares of Arthur J. Gallagher & Co. from $300.00 to $308.00 and gave the company an “equal weight” rating in a research report on Thursday, November 21st. Piper Sandler raised shares of Arthur J. Gallagher & Co. from a “neutral” rating to an “overweight” rating and raised their price target for the company from $285.00 to $315.00 in a research report on Wednesday, January 8th. Finally, Truist Financial raised their target price 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. Two research analysts have rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $304.07.

Insider Activity at Arthur J. Gallagher & Co.

In related news, VP Christopher E. Mead sold 2,800 shares of the business’s stock in a transaction on Monday, October 28th. The shares were sold at an average price of $287.00, for a total value of $803,600.00. Following the transaction, the vice president now owns 14,674 shares in the company, valued at $4,211,438. The trade was a 16.02 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Douglas K. Howell sold 7,000 shares of Arthur J. Gallagher & Co. stock in a transaction dated Monday, October 28th. The stock was sold at an average price of $284.70, for a total value of $1,992,900.00. Following the completion of the transaction, the chief financial officer now directly owns 75,963 shares of the company’s stock, valued at approximately $21,626,666.10. This trade represents a 8.44 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in AJG. Cerro Pacific Wealth Advisors LLC purchased a new stake in shares of Arthur J. Gallagher & Co. in the fourth quarter worth about $200,000. Mutual Advisors LLC lifted its stake in Arthur J. Gallagher & Co. by 12.1% in the 4th quarter. Mutual Advisors LLC now owns 1,790 shares of the financial services provider’s stock worth $530,000 after purchasing an additional 193 shares in the last quarter. Wendell David Associates Inc. boosted its holdings in Arthur J. Gallagher & Co. by 75.9% in the 4th quarter. Wendell David Associates Inc. now owns 11,667 shares of the financial services provider’s stock valued at $3,312,000 after purchasing an additional 5,035 shares during the period. Advisory Alpha LLC grew its position in shares of Arthur J. Gallagher & Co. by 19.7% during the 4th quarter. Advisory Alpha LLC now owns 1,559 shares of the financial services provider’s stock valued at $443,000 after purchasing an additional 257 shares in the last quarter. Finally, Dakota Wealth Management increased its holdings in shares of Arthur J. Gallagher & Co. by 4.6% in the fourth quarter. Dakota Wealth Management now owns 90,613 shares of the financial services provider’s stock worth $25,721,000 after purchasing an additional 4,016 shares during the period. Hedge funds and other institutional investors own 85.53% of the company’s stock.

Arthur J. Gallagher & Co. Company Profile

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.