Arthur J Gallagher & Co (AJG) Expected to Post Quarterly Sales of $1.69 Billion

Equities analysts expect that Arthur J Gallagher & Co (NYSE:AJG) will post $1.69 billion in sales for the current quarter, according to Zacks. Two analysts have provided estimates for Arthur J Gallagher & Co’s earnings. Arthur J Gallagher & Co reported sales of $1.58 billion during the same quarter last year, which indicates a positive year-over-year growth rate of 7%. The firm is scheduled to issue its next earnings report on Thursday, October 25th.

On average, analysts expect that Arthur J Gallagher & Co will report full-year sales of $6.72 billion for the current financial year, with estimates ranging from $6.71 billion to $6.72 billion. For the next fiscal year, analysts expect that the firm will report sales of $7.23 billion per share, with estimates ranging from $7.15 billion to $7.34 billion. Zacks’ sales calculations are an average based on a survey of sell-side analysts that that provide coverage for Arthur J Gallagher & Co.

Arthur J Gallagher & Co (NYSE:AJG) last released its quarterly earnings results on Thursday, July 26th. The financial services provider reported $0.62 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.62. Arthur J Gallagher & Co had a net margin of 9.34% and a return on equity of 15.93%. The business had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same quarter in the previous year, the business earned $0.48 earnings per share. The firm’s revenue was up 11.7% compared to the same quarter last year.

Several research analysts have weighed in on the stock. Credit Suisse Group assumed coverage on shares of Arthur J Gallagher & Co in a research note on Tuesday, August 7th. They issued an “outperform” rating and a $84.00 price objective on the stock. Wells Fargo & Co reiterated a “buy” rating and issued a $78.00 price objective on shares of Arthur J Gallagher & Co in a research note on Thursday, June 14th. Royal Bank of Canada reiterated a “hold” rating and issued a $73.00 price objective on shares of Arthur J Gallagher & Co in a research note on Friday, July 27th. William Blair reiterated a “buy” rating on shares of Arthur J Gallagher & Co in a research note on Thursday. Finally, Goldman Sachs Group assumed coverage on shares of Arthur J Gallagher & Co in a research note on Monday, June 18th. They issued a “buy” rating and a $81.00 price objective on the stock. Six research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. Arthur J Gallagher & Co presently has an average rating of “Buy” and a consensus price target of $75.64.

In other news, Director Kay W. Mccurdy sold 3,500 shares of the stock in a transaction on Wednesday, August 1st. The shares were sold at an average price of $71.10, for a total transaction of $248,850.00. Following the transaction, the director now owns 32,632 shares in the company, valued at approximately $2,320,135.20. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO J Patrick Gallagher, Jr. purchased 9,090 shares of the company’s stock in a transaction dated Tuesday, June 19th. The shares were acquired at an average price of $66.11 per share, for a total transaction of $600,939.90. Following the purchase, the chief executive officer now owns 51,698 shares in the company, valued at $3,417,754.78. The disclosure for this purchase can be found here. 1.60% of the stock is currently owned by corporate insiders.

Several institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. increased its stake in shares of Arthur J Gallagher & Co by 1.8% during the 1st quarter. BlackRock Inc. now owns 14,678,824 shares of the financial services provider’s stock worth $1,008,875,000 after purchasing an additional 265,202 shares during the last quarter. Charles Schwab Investment Advisory Inc. acquired a new position in shares of Arthur J Gallagher & Co during the 2nd quarter worth $240,671,000. Thomaspartners Inc. increased its stake in shares of Arthur J Gallagher & Co by 2.2% during the 1st quarter. Thomaspartners Inc. now owns 3,666,662 shares of the financial services provider’s stock worth $252,010,000 after purchasing an additional 80,214 shares during the last quarter. Millennium Management LLC increased its stake in shares of Arthur J Gallagher & Co by 136.2% during the 2nd quarter. Millennium Management LLC now owns 2,030,149 shares of the financial services provider’s stock worth $132,528,000 after purchasing an additional 1,170,683 shares during the last quarter. Finally, Schroder Investment Management Group increased its stake in shares of Arthur J Gallagher & Co by 0.9% during the 1st quarter. Schroder Investment Management Group now owns 1,483,635 shares of the financial services provider’s stock worth $101,970,000 after purchasing an additional 12,570 shares during the last quarter. Institutional investors own 80.92% of the company’s stock.

AJG stock opened at $72.21 on Friday. The company has a market cap of $12.94 billion, a PE ratio of 23.52, a PEG ratio of 1.98 and a beta of 1.18. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.70. Arthur J Gallagher & Co has a 52-week low of $57.19 and a 52-week high of $73.11.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 21st. Shareholders of record on Friday, September 7th will be paid a $0.41 dividend. The ex-dividend date of this dividend is Thursday, September 6th. This represents a $1.64 annualized dividend and a yield of 2.27%. Arthur J Gallagher & Co’s dividend payout ratio is presently 53.59%.

About Arthur J Gallagher & Co

Arthur J. Gallagher & Co, together with its subsidiaries, provides insurance brokerage, consulting, and third party claims settlement and administration services to entities in the United States and internationally. Its Brokerage segment consists of retail and wholesale insurance brokerage operations.

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