$0.78 EPS Expected for Arthur J Gallagher & Co (AJG) This Quarter

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Wall Street analysts forecast that Arthur J Gallagher & Co (NYSE:AJG) will post $0.78 earnings per share for the current quarter, Zacks Investment Research reports. Two analysts have made estimates for Arthur J Gallagher & Co’s earnings, with the highest EPS estimate coming in at $0.81 and the lowest estimate coming in at $0.76. Arthur J Gallagher & Co reported earnings of $0.81 per share in the same quarter last year, which would indicate a negative year-over-year growth rate of 3.7%. The business is expected to announce its next earnings results on Thursday, October 25th.

On average, analysts expect that Arthur J Gallagher & Co will report full-year earnings of $3.46 per share for the current financial year, with EPS estimates ranging from $3.40 to $3.55. For the next financial year, analysts anticipate that the firm will report earnings of $3.90 per share, with EPS estimates ranging from $3.66 to $4.05. Zacks’ earnings per share averages are a mean average based on a survey of research firms that that provide coverage for Arthur J Gallagher & Co.

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

A number of research firms have recently commented on AJG. Wells Fargo & Co reiterated a “buy” rating and issued a $78.00 price objective on shares of Arthur J Gallagher & Co in a report on Thursday, June 14th. Royal Bank of Canada reissued a “hold” rating and issued a $73.00 target price on shares of Arthur J Gallagher & Co in a research report on Friday, July 27th. Goldman Sachs Group began coverage on Arthur J Gallagher & Co in a research report on Monday, June 18th. They set a “buy” rating and a $81.00 price objective for the company. Credit Suisse Group initiated coverage on Arthur J Gallagher & Co in a research report on Tuesday, August 7th. They set an “outperform” rating and a $84.00 price objective for the company. Finally, William Blair reissued a “buy” rating on shares of Arthur J Gallagher & Co in a research note on Thursday, August 16th. Six research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $75.64.

In related news, General Counsel Walter D. Bay sold 9,100 shares of the business’s stock in a transaction dated Thursday, August 16th. The stock was sold at an average price of $71.95, for a total value of $654,745.00. Following the completion of the sale, the general counsel now directly owns 26,369 shares of the company’s stock, valued at $1,897,249.55. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO J Patrick Gallagher, Jr. acquired 9,090 shares of the stock in a transaction that occurred on Tuesday, June 19th. The stock was purchased at an average cost of $66.11 per share, with a total value of $600,939.90. Following the completion of the acquisition, the chief executive officer now owns 51,698 shares of the company’s stock, valued at $3,417,754.78. The disclosure for this purchase can be found here. Over the last ninety days, insiders have sold 27,267 shares of company stock worth $1,959,126. Corporate insiders own 1.60% of the company’s stock.

A number of institutional investors have recently made changes to their positions in AJG. Charles Schwab Investment Advisory Inc. acquired a new position in Arthur J Gallagher & Co in the second quarter valued at approximately $240,671,000. Millennium Management LLC boosted its stake in Arthur J Gallagher & Co by 136.2% in the second quarter. Millennium Management LLC now owns 2,030,149 shares of the financial services provider’s stock valued at $132,528,000 after acquiring an additional 1,170,683 shares during the period. Baird Financial Group Inc. boosted its stake in Arthur J Gallagher & Co by 6,475.5% in the second quarter. Baird Financial Group Inc. now owns 512,695 shares of the financial services provider’s stock valued at $33,469,000 after acquiring an additional 504,898 shares during the period. OppenheimerFunds Inc. boosted its stake in Arthur J Gallagher & Co by 231.6% in the second quarter. OppenheimerFunds Inc. now owns 650,274 shares of the financial services provider’s stock valued at $42,450,000 after acquiring an additional 454,149 shares during the period. Finally, US Bancorp DE boosted its stake in Arthur J Gallagher & Co by 404.6% in the second quarter. US Bancorp DE now owns 417,551 shares of the financial services provider’s stock valued at $27,259,000 after acquiring an additional 334,800 shares during the period. 83.89% of the stock is owned by hedge funds and other institutional investors.

NYSE AJG traded up $0.25 during trading hours on Friday, hitting $73.24. 24,106 shares of the company were exchanged, compared to its average volume of 593,413. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.11 and a quick ratio of 1.11. Arthur J Gallagher & Co has a 52-week low of $57.19 and a 52-week high of $73.11. The company has a market cap of $13.17 billion, a price-to-earnings ratio of 23.91, a price-to-earnings-growth ratio of 2.02 and a beta of 1.15.

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 dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.24%. The ex-dividend date is Thursday, September 6th. Arthur J Gallagher & Co’s dividend payout ratio is presently 53.59%.

Arthur J Gallagher & Co Company Profile

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.

See Also: Outstanding Shares and The Effect on Share Price

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Earnings History and Estimates for Arthur J Gallagher & Co (NYSE:AJG)

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