Does Wall Street Rate Aon plc (AON) Shares A Buy?


As of Wednesday close, Aon plc’s (NYSE:AON) stock was up $0.45, moving up 0.15 percent to $304.24. The average number of shares traded per day over the past five days has been 705,880 shares. 4 times new highs have been achieved over the past 5 days, with a $10.78 gain in that time frame. In the last twenty days, the average volume was 752,885, while in the previous 50 days, it was 822,418.

Since last month, AON stock rose 8.66%. Shares of the company fell to $273.02 on 10/28/22, the lowest level in the past month. A 52-week high of $341.98 was reached on 04/21/22 after having rallying from a 52-week low of $246.21. Since the beginning of this year, AON’s stock price has risen by 1.22% or $3.68, and marked a new high 15 times. However, the stock has declined by -11.04% since its 52-week high.

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AON stock investors should be aware that Aon plc (AON) stock had its last reported insider trading activity 93 days ago on Aug 23. Spruell Byron, the Director of the company, purchased of 400 shares for $291.72 on Aug 23. It resulted in a $116,688 investment by the insider. Zeidel Darren sold 111 shares at an average price of $290.00 on Jul 28. The insider now owns 15,129 shares following the transaction. On May 05, Director KNIGHT LESTER B bought 14,000 shares at $286.58 apiece. The transaction was valued at $4,012,124.

Valuation Metrics

Right now, Aon plc (AON) has a P/E ratio of about 23.62. The stock’s beta is 0.88. Besides these, the trailing price-to-sales (P/S) ratio of 4.97, the price-to-book (PB) ratio of 94.78, and the price-to-cash flow ratio of 41.18 may also be considered.

The latest dividend of $0.56 per share was paid out, remained unchanged from last year’s $0.56. On Thursday April 14 2022, a $0.05 dividend increase was announced.

Financial Health

In the three months ended September 29, Aon plc’s quick ratio stood at 1.10, while its current ratio was 1.10, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 14.19, and the total debt-to-equity ratio was 15.27. In the year ended September 29, operating margins totaled 19.10%. Based on annual data, AON earned $1.93 billion in gross profit and brought in $12.19 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 15.30%. Return on equity (ROE) for the past 12 months was 106.40%.

In Aon plc’s quarter-end financial report for September 29, it reported total debt of $10.12 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. AON’s revenue fell -0.07% to $2.99 billion during the quarter, while net income inched up to $2.7 billion. While analysts expected Aon plc to report $1.99 quarterly earnings, the actual figure was $2.02 per share, beating the consensus estimate by 1.50%. During the quarter, the company generated $661.0 million in EBITDA. The value of shareholders’ equity is $206.85 million.

Technical Picture

This quick technical analysis looks at Aon plc’s (AON) price momentum. With a historical volatility rate of 12.51%, the RSI 9-day stood at 71.03% on 23 November.

With respect to its five-day moving average, the current Aon plc price is up by +3.67% percent or $10.78. At present, AON shares trade +9.78% above its 20-day simple moving average and +10.24% percent above its 100-day simple moving average. However, the stock is currently trading approximately +7.21% above its SMA50 and +5.67% above its SMA200.

Stochastic coefficient K was 94.20% and Stochastic coefficient D was 93.51%, while ATR was 6.39. Given the Stochastic reading of 96.02% for the 14-day period, the RSI (14) reading has been calculated as 65.06%. As of today, the MACD Oscillator reading stands at 5.85, while the 14-day reading stands at 9.85.

Analyst Ratings

Aon plc downgraded its rating on Aon plc (NYSE: AON) to an Underperform in a note to investors on October 31, 2022. The analysts firm previously had a Mkt perform rating on the stock.Aon plc (AON) has been rated Hold by analysts. According to 4 brokerage firms, AON is a sell, and 12 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Aon plc stock as buy, with 2 recommending it as overweight.

With a median target price of $304.50, the current consensus forecast for the stock is $255.00 – $335.00. Based on these forecasts, analysts predict Aon plc (AON) will achieve an average price target of $302.93.


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