The Bank of Montreal has reduced its stake in Arthur J. Gallagher & Co. (NYSE: AJG) by 8.9% during the second quarter, according to a report from HoldingsChannel. Following the sale of 22,095 shares, the bank now holds 225,323 shares valued at approximately $72.13 million based on its latest filing with the Securities and Exchange Commission (SEC). This move reflects ongoing adjustments by institutional investors in the financial services sector.
In addition to the Bank of Montreal, several other institutional investors have made significant transactions involving Arthur J. Gallagher & Co. J.Safra Asset Management Corp notably increased its stake by an impressive 209.1%, acquiring 102 shares valued at $32,000 after purchasing 69 additional shares. Meanwhile, AlphaQuest LLC, the Saudi Central Bank, and Centennial Bank AR each established new positions in the company during the first quarter, with valuations of $33,000, $34,000, and $38,000, respectively. Notably, Motco increased its stake by 700.0%, now owning 112 shares valued at $39,000.
Currently, institutional investors and hedge funds collectively own 85.53% of Arthur J. Gallagher & Co.’s stock, indicating robust institutional confidence in the company.
Current Stock Performance and Dividend Announcement
Arthur J. Gallagher & Co. shares opened at $251.51 on Wednesday. The company maintains a current ratio and quick ratio of 1.36, with a debt-to-equity ratio of 0.52. It boasts a market capitalization of $64.49 billion and a price-to-earnings (P/E) ratio of 35.73. The stock has fluctuated between a 12-month low of $239.47 and a high of $351.23.
In a recent development, the firm announced a quarterly dividend of $0.65 per share, set to be paid on December 19, 2023. Shareholders of record on December 5, 2023, will receive the dividend, representing an annualized payout of $2.60 and a yield of 1.0%. The company’s current payout ratio stands at 38.86%.
Analyst Ratings and Insider Transactions
Recent analysts’ assessments have shown a mixed response to the stock. Evercore ISI reduced its price target for Arthur J. Gallagher & Co. from $370.00 to $353.00 while maintaining an “outperform” rating. Conversely, Goldman Sachs lowered its target from $361.00 to $315.00, also rating it as a “buy.” Wall Street Zen downgraded the stock from “hold” to “sell,” while UBS Group raised its target from $322.00 to $329.00, assigning a “neutral” rating. Citigroup similarly reduced its target from $330.00 to $277.00.
According to MarketBeat data, Arthur J. Gallagher & Co. currently holds a consensus rating of “Moderate Buy” with a price target of $323.73. Out of the analysts covering the stock, one rates it as a “Strong Buy,” nine as “Buy,” and eight as “Hold.”
In insider trading news, VP Michael Robert Pesch acquired 4,000 shares at an average price of $247.12 per share, totaling approximately $988,480. This purchase increased his holdings to 41,849 shares, valued at around $10.34 million. Conversely, CFO Douglas K. Howell sold 8,000 shares at an average price of $299.54, bringing in approximately $2.40 million. Following this sale, Howell holds 100,777 shares, valued at around $30.19 million.
Over the last quarter, insiders have sold a total of 29,855 shares worth approximately $8.92 million, with insiders owning 1.60% of the company’s stock.
Arthur J. Gallagher & Co. provides a range of services including insurance brokerage, reinsurance brokerage, consulting, and third-party claims settlement and administration services. The company operates through several segments: Brokerage, Risk Management, and Corporate, with a focus on both retail and wholesale insurance brokerage operations.
