The stock of Arthur J. Gallagher & Co. (NYSE:AJG) increased by $2.74 on Friday to finish at $227.60, up 1.22 percent. The last five days have seen an average of 650,580 shares of common stock traded. 35 times new highs were reached in the current year, with a gain of $39.06. The average number of shares traded over the last 20 days was 640,120, while the average volume over the last 50 days totaled 776,016.
AJG stock appreciated 4.81% since last month. On 07/31/23, the company’s shares reached a one-month low of $214.13. The stock touched a high of $227.34 on 08/25/23, after rallying from a low of $167.93 in 52 weeks. The price of AJG stock has risen by 20.72% or $39.06 this year, reaching a new high 35 times. Still, the stock price is up 0.11% from the 52-week high.
Insider Transactions
AJG stock investors should be aware that Arthur J. Gallagher & Co. (AJG) stock had its last reported insider trading activity 73 days ago on Jun 16. On Jun 16, Director JOHNSON DAVID S sold 1,000 shares at $216.40 each. This transaction resulted in the insider making $216,400. On Jun 08, Cavaness Joel D sold 2,750 shares at a price of US$204.23. After the transaction, the insider now owns 2,023 shares. Controller, CAO CARY RICHARD C had earlier sold 3,204 shares on May 10 for $217.62 a share. The transaction was completed for $697,254.
Valuation Metrics
Arthur J. Gallagher & Co. (AJG) has a trailing price-to-earnings (P/E) ratio of 44.37. Beta for the stock is 0.69. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 5.26, the price-to-book (PB) ratio of 4.71, and the price-to-cash flow ratio of 29.96.
Company paid $0.55 per share in dividends, remained unchanged from $0.55 last year.
Financial Health
For the three months ended June 29, Arthur J. Gallagher & Co.’s quick ratio was 1.00, while its current ratio was 1.00, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.58, and the total debt to equity ratio is 0.69. As far as profitability goes, gross margin for the trailing twelve months is 45.00% percent. Arthur J. Gallagher & Co.’s operating margin stood at 17.50% for the same period. Based on annual data, it had gross profit of $3.73 billion and revenue of $8.55 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. AJG’s return on assets (ROA) during the last 12 months has been 2.50%. There was a 9.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 11.70%.
Earnings Surprise
According to Arthur J. Gallagher & Co.’s quarterly financial report for the quarter that ended June 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $4.85 billion, while revenues rose by 16.45% to $5.38 billion. It was predicted that Arthur J. Gallagher & Co.’s quarterly earnings would be $1.9, but it ended up being $1.86, beating the consensus by 2.20%. EBITDA was $550.9 million for the quarter. At the end of Arthur J. Gallagher & Co.’s most recent quarter ended June 29, its liabilities totaled 43.93 billion, while its total debt was $7.47 billion. Equity owned by shareholders amounts to $215.51 million.
Technical Picture
Here’s a quick look at Arthur J. Gallagher & Co.’s (AJG) price momentum from a technical perspective. As of 25 August, the RSI 9-day stood at 66.36%, suggesting the stock is Neutral, with a 15.69% historical volatility rate.
The stochastic %K and %D were 83.24% and 73.21% respectively, while the average true range (ATR) was 3.64. Based on the 14-day stochastic reading of 87.23%, the RSI (14) reading is 63.03%. On the 9-day MACD Oscillator, the stock is at 2.45, and the 14-day reading is at 2.49.
Analyst Ratings
In its analyst report released on January 20, 2023, BMO Capital Markets began covering Arthur J. Gallagher & Co. (NYSE: AJG). The stock was rated as an Outperform by the brokerage firm. Analysts have assigned Arthur J. Gallagher & Co. (AJG) an Overweight rating. AJG is a stock that is recommended for selling by 0 brokerage firms, while 3 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 1 rate it overweight and 13 others recommend it as a buy.
What is AJG’s price target for the next 12 months?
The current consensus forecast for the stock is between $199.00 and $255.00, with a median target price of $237.00. In analyzing these forecasts, the average price target given by analysts for Arthur J. Gallagher & Co. (AJG) is $234.33.
