Short Interest in Arthur J. Gallagher & Co. (NYSE:AJG) Expands By 157.5%

Arthur J. Gallagher & Co. (NYSE:AJG) was the recipient of a large increase in short interest during the month of December. As of December 15th, there was short interest totalling 7,340,000 shares, an increase of 157.5% from the November 30th total of 2,850,000 shares. Based on an average daily volume of 1,460,000 shares, the days-to-cover ratio is presently 5.0 days.

Arthur J. Gallagher & Co. Stock Performance

Shares of AJG stock opened at $286.54 on Friday. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.06 and a current ratio of 1.06. Arthur J. Gallagher & Co. has a fifty-two week low of $222.88 and a fifty-two week high of $316.72. The stock has a 50 day moving average price of $292.34 and a two-hundred day moving average price of $284.29. The company has a market capitalization of $71.58 billion, a P/E ratio of 54.58, a PEG ratio of 2.41 and a beta of 0.74.

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

Arthur J. Gallagher & Co. Dividend Announcement

The firm also recently declared 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 0.84%. Arthur J. Gallagher & Co.’s dividend payout ratio is presently 45.71%.

Analyst Ratings Changes

AJG has been the subject of a number of research analyst reports. Wells Fargo & Company lifted their price target on Arthur J. Gallagher & Co. from $315.00 to $344.00 and gave the company an “overweight” rating in a research report on Tuesday, December 10th. BMO Capital Markets lifted their target price on shares of Arthur J. Gallagher & Co. from $312.00 to $325.00 and gave the company an “outperform” rating in a research report on Tuesday, November 12th. Barclays increased their price target 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. The Goldman Sachs Group downgraded shares of Arthur J. Gallagher & Co. from a “buy” rating to a “neutral” rating and set a $313.00 price objective for the company. in a report on Monday, November 25th. Finally, Truist Financial raised their price target on Arthur J. Gallagher & Co. from $265.00 to $275.00 and gave the company a “hold” rating in a research report on Friday, September 20th. Three research analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have issued a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $296.57.

Insider Activity

In related news, CFO Douglas K. Howell sold 7,000 shares of Arthur J. Gallagher & Co. stock in a transaction that occurred on Monday, October 28th. The shares were 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 in the company, valued at approximately $21,626,666.10. The trade was a 8.44 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Christopher E. Mead sold 2,800 shares of the firm’s stock in a transaction on Monday, October 28th. The stock was sold at an average price of $287.00, for a total value of $803,600.00. Following the completion of the transaction, the vice president now directly owns 14,674 shares of the company’s stock, valued at $4,211,438. The trade was a 16.02 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 1.60% of the company’s stock.

Institutional Investors Weigh In On Arthur J. Gallagher & Co.

Several institutional investors and hedge funds have recently bought and sold shares of AJG. Atomi Financial Group Inc. raised its holdings in shares of Arthur J. Gallagher & Co. by 24.7% during the second quarter. Atomi Financial Group Inc. now owns 1,011 shares of the financial services provider’s stock valued at $262,000 after acquiring an additional 200 shares in the last quarter. Harbour Investments Inc. raised its holdings in Arthur J. Gallagher & Co. by 7.9% in the 2nd quarter. Harbour Investments Inc. now owns 883 shares of the financial services provider’s stock worth $229,000 after purchasing an additional 65 shares in the last quarter. HB Wealth Management LLC lifted its position in shares of Arthur J. Gallagher & Co. by 18.0% in the 2nd quarter. HB Wealth Management LLC now owns 2,782 shares of the financial services provider’s stock worth $721,000 after purchasing an additional 424 shares during the period. Signaturefd LLC boosted its stake in shares of Arthur J. Gallagher & Co. by 1.0% during the 2nd quarter. Signaturefd LLC now owns 3,825 shares of the financial services provider’s stock valued at $992,000 after purchasing an additional 39 shares in the last quarter. Finally, Sumitomo Mitsui DS Asset Management Company Ltd increased its position in shares of Arthur J. Gallagher & Co. by 10.3% during the second quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 22,200 shares of the financial services provider’s stock valued at $5,757,000 after buying an additional 2,074 shares during the period. Hedge funds and other institutional investors 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.