Arthur J. Gallagher & Co. [AJG] Revenue clocked in at $7.65 billion, up 13.41% YTD: What’s Next?

Arthur J. Gallagher & Co. [NYSE: AJG] slipped around -1.22 points on Friday, while shares priced at $140.30 at the close of the session, down -0.86%. The company report on August 13, 2021 that Arthur J. Gallagher & Co. Announces Agreement To Acquire Willis Towers Watson plc Treaty Reinsurance Brokerage Operations.

Arthur J. Gallagher & Co. (NYSE: AJG) announced an agreement to acquire the treaty reinsurance brokerage operations of Willis Towers Watson plc. The transaction is expected to close during the fourth quarter of 2021.

“Broadening our reinsurance brokerage offerings has been a strategic objective at Gallagher and this acquisition will significantly enhance our global value proposition,” said J. Patrick Gallagher, Jr., Chairman, President and CEO. “We were very impressed with the Willis Towers Watson reinsurance professionals we met during our initial due diligence and strongly believe a combination will significantly enhance our offerings to clients and prospects. I look forward to welcoming the 2,200 new colleagues joining us as part of this transaction to our growing Gallagher family of professionals.”.

Arthur J. Gallagher & Co. stock is now 13.41% up from its year-to-date (YTD) trading value. AJG Stock saw the intraday high of $142.48 and lowest of $140.29 per share. The company’s 52-week high price is 154.03, which means current price is +24.25% above from all time high which was touched on 05/10/21.

Compared to the average trading volume of 1.23M shares, AJG reached a trading volume of 1627636 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Arthur J. Gallagher & Co. [AJG]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AJG shares is $155.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AJG stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Raymond James have made an estimate for Arthur J. Gallagher & Co. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on July 28, 2021. While these analysts kept the previous recommendation, Atlantic Equities raised their target price to Overweight. The new note on the price target was released on July 06, 2021, representing the official price target for Arthur J. Gallagher & Co. stock. Previously, the target price had yet another raise to $133, while BofA Securities analysts kept a Underperform rating on AJG stock.

The Average True Range (ATR) for Arthur J. Gallagher & Co. is set at 2.28, with the Price to Sales ratio for AJG stock in the period of the last 12 months amounting to 3.82. The Price to Book ratio for the last quarter was 3.40, with the Price to Cash per share for the same quarter was set at 15.36. Price to Free Cash Flow for AJG in the course of the last twelve months was 25.17 with Quick ratio for the last quarter at 1.30.

How has AJG stock performed recently?

Arthur J. Gallagher & Co. [AJG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.89. With this latest performance, AJG shares gained by 0.11% in over the last four-week period, additionally plugging by 20.24% over the last 6 months – not to mention a rise of 30.89% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AJG stock in for the last two-week period is set at 50.38, with the RSI for the last a single of trading hit 51.07, and the three-weeks RSI is set at 50.00 for Arthur J. Gallagher & Co. [AJG]. The present Moving Average for the last 50 days of trading for this stock 140.73, while it was recorded at 141.06 for the last single week of trading, and 129.26 for the last 200 days.

Arthur J. Gallagher & Co. [AJG]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Arthur J. Gallagher & Co. [AJG] shares currently have an operating margin of +15.16 and a Gross Margin at +78.93. Arthur J. Gallagher & Co.’s Net Margin is presently recorded at +11.95.

Return on Total Capital for AJG is now 9.69, given the latest momentum, and Return on Invested Capital for the company is 8.15. Return on Equity for this stock inclined to 14.44, with Return on Assets sitting at 3.90. When it comes to the capital structure of this company, Arthur J. Gallagher & Co. [AJG] has a Total Debt to Total Equity ratio set at 80.09. Additionally, AJG Total Debt to Total Capital is recorded at 44.47, with Total Debt to Total Assets ending up at 22.19. Long-Term Debt to Equity for the company is recorded at 74.15, with the Long-Term Debt to Total Capital now at 41.17.

Reflecting on the efficiency of the workforce at the company, Arthur J. Gallagher & Co. [AJG] managed to generate an average of $25,271 per employee. Receivables Turnover for the company is 1.01 with a Total Asset Turnover recorded at a value of 0.33.Arthur J. Gallagher & Co.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.

Earnings analysis for Arthur J. Gallagher & Co. [AJG]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AJG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Arthur J. Gallagher & Co. go to 9.82%.

Insider trade positions for Arthur J. Gallagher & Co. [AJG]

There are presently around $24,310 million, or 83.90% of AJG stock, in the hands of institutional investors. The top three institutional holders of AJG stocks are: VANGUARD GROUP INC with ownership of 23,763,727, which is approximately 5.942% of the company’s market cap and around 0.40% of the total institutional ownership; BLACKROCK INC., holding 19,453,166 shares of the stock with an approximate value of $2.73 billion in AJG stocks shares; and FMR LLC, currently with $1.31 billion in AJG stock with ownership of nearly 15.23% of the company’s market capitalization.

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Positions in Arthur J. Gallagher & Co. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 366 institutional holders increased their position in Arthur J. Gallagher & Co. [NYSE:AJG] by around 15,823,513 shares. Additionally, 296 investors decreased positions by around 5,768,500 shares, while 134 investors held positions by with 151,681,513 shares. The mentioned changes placed institutional holdings at 173,273,526 shares, according to the latest SEC report filing. AJG stock had 88 new institutional investments in for a total of 4,404,949 shares, while 44 institutional investors sold positions of 488,961 shares during the same period.

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