As of Friday close, Arthur J. Gallagher & Co.’s (NYSE:AJG) stock was up $0.07, moving up 0.03 percent to $220.55. The average number of shares traded per day over the past five days has been 556,620 shares. 2 times new highs have been achieved over the past 5 days, with a -$3.82 fall in that time frame. In the last twenty days, the average volume was 673,975, while in the previous 50 days, it was 787,666.
Since last month, AJG stock rose 1.06%. Shares of the company fell to $212.39 on 07/19/23, the lowest level in the past month. A 52-week high of $227.34 was reached on 08/16/23 after having rallying from a 52-week low of $167.93. Since the beginning of this year, AJG’s stock price has risen by 16.98% or $32.01, and marked a new high 34 times. However, the stock has declined by -2.99% since its 52-week high.
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AJG stock investors should be aware that Arthur J. Gallagher & Co. (AJG) stock had its last reported insider trading activity 64 days ago on Jun 16. JOHNSON DAVID S, the Director of the company, disposed of 1,000 shares for $216.40 on Jun 16. It resulted in a $216,400 divestment by the insider. Cavaness Joel D sold 2,750 shares at an average price of $204.23 on Jun 08. The insider now owns 2,023 shares following the transaction. On May 10, Controller, CAO CARY RICHARD C sold 3,204 shares at $217.62 apiece. The transaction was valued at $697,254.
Valuation Metrics
Right now, Arthur J. Gallagher & Co. (AJG) has a P/E ratio of about 42.99. The stock’s beta is 0.69. Besides these, the trailing price-to-sales (P/S) ratio of 5.12, the price-to-book (PB) ratio of 4.56, and the price-to-cash flow ratio of 29.16 may also be considered.
The latest dividend of $0.55 per share was paid out, remained unchanged from last year’s $0.55.
Financial Health
In the three months ended June 29, Arthur J. Gallagher & Co.’s quick ratio stood at 1.00, while its current ratio was 1.00, 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 June 29 was 0.58, and the total debt-to-equity ratio was 0.69. On the profitability front, the trailing twelve-month gross margin is 45.00% percent. In the year ended June 29, operating margins totaled 17.50%. Based on annual data, AJG earned $3.73 billion in gross profit and brought in $8.55 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 9.20%. Return on equity (ROE) for the past 12 months was 11.70%.
In Arthur J. Gallagher & Co.’s quarter-end financial report for June 29, it reported total debt of $6.02 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. AJG’s revenue rose 16.45% to $5.38 billion during the quarter, while net income inched up to $4.85 billion. While analysts expected Arthur J. Gallagher & Co. to report $1.86 quarterly earnings, the actual figure was $1.9 per share, beating the consensus estimate by 2.20%. During the quarter, the company generated $550.9 million in EBITDA. The liabilities of Arthur J. Gallagher & Co. were 43.93 billion at the end of its most recent quarter ended June 29, and its total debt was $7.47 billion. The value of shareholders’ equity is $215.51 million.
Technical Picture
This quick technical analysis looks at Arthur J. Gallagher & Co.’s (AJG) price momentum. With a historical volatility rate of 17.04%, the RSI 9-day stood at 47.14% on 18 August.
With respect to its five-day moving average, the current Arthur J. Gallagher & Co. price is down by -1.70% percent or -$3.82. At present, AJG shares trade +0.89% above its 20-day simple moving average and +18.49% percent above its 100-day simple moving average. However, the stock is currently trading approximately +8.03% above its SMA50 and +17.89% above its SMA200.
Stochastic coefficient K was 59.10% and Stochastic coefficient D was 70.99%, while ATR was 4.04. Given the Stochastic reading of 46.58% for the 14-day period, the RSI (14) reading has been calculated as 51.06%. As of today, the MACD Oscillator reading stands at -0.95, while the 14-day reading stands at -0.45.
Analyst Ratings
BMO Capital Markets launched its rating on Arthur J. Gallagher & Co. (NYSE: AJG) to an Outperform in a note to investors on January 20, 2023. Arthur J. Gallagher & Co. (AJG) has been rated Overweight by analysts. According to 0 brokerage firms, AJG is a sell, and 3 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 1 analyst rate Arthur J. Gallagher & Co. stock as buy, with 13 recommending it as overweight.
With a median target price of $237.00, the current consensus forecast for the stock is $199.00 – $255.00. Based on these forecasts, analysts predict Arthur J. Gallagher & Co. (AJG) will achieve an average price target of $234.33.
