Arthur J. Gallagher & Co. (NYSE:AJG) to Issue $0.60 Quarterly Dividend

Arthur J. Gallagher & Co. (NYSE:AJG) declared a quarterly dividend on Wednesday, July 24th, RTT News reports. Stockholders of record on Friday, September 6th will be paid a dividend of 0.60 per share by the financial services provider on Friday, September 20th. This represents a $2.40 annualized dividend and a dividend yield of 0.87%.

Arthur J. Gallagher & Co. has increased its dividend by an average of 6.9% annually over the last three years and has raised its dividend every year for the last 14 years. Arthur J. Gallagher & Co. has a payout ratio of 21.1% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Arthur J. Gallagher & Co. to earn $11.31 per share next year, which means the company should continue to be able to cover its $2.40 annual dividend with an expected future payout ratio of 21.2%.

Arthur J. Gallagher & Co. Price Performance

Shares of Arthur J. Gallagher & Co. stock traded up $1.10 on Wednesday, hitting $274.32. 1,215,056 shares of the company were exchanged, compared to its average volume of 844,805. The stock has a market capitalization of $59.94 billion, a price-to-earnings ratio of 55.64, a price-to-earnings-growth ratio of 2.43 and a beta of 0.72. The company has a 50-day moving average price of $260.00 and a 200 day moving average price of $247.70. Arthur J. Gallagher & Co. has a 1-year low of $214.13 and a 1-year high of $276.84. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.70.

Arthur J. Gallagher & Co. (NYSE:AJG) last released its quarterly earnings results on Thursday, April 25th. The financial services provider reported $3.49 EPS for the quarter, beating the consensus estimate of $3.41 by $0.08. The firm had revenue of $3.22 billion for the quarter, compared to analyst estimates of $3.18 billion. Arthur J. Gallagher & Co. had a net margin of 10.27% and a return on equity of 18.94%. The business’s revenue for the quarter was up 20.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.03 EPS. As a group, sell-side analysts predict that Arthur J. Gallagher & Co. will post 10.1 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

AJG has been the topic of several analyst reports. Piper Sandler reduced their price target on shares of Arthur J. Gallagher & Co. from $253.00 to $252.00 and set a “neutral” rating on the stock in a research report on Monday, April 29th. Wells Fargo & Company boosted their target price on Arthur J. Gallagher & Co. from $274.00 to $282.00 and gave the company an “overweight” rating in a research report on Wednesday, June 26th. Bank of America boosted their target price on Arthur J. Gallagher & Co. from $233.00 to $255.00 and gave the company an “underperform” rating in a research report on Wednesday, May 22nd. TD Cowen boosted their target price on Arthur J. Gallagher & Co. from $249.00 to $273.00 and gave the company a “hold” rating in a research report on Tuesday, April 2nd. Finally, Keefe, Bruyette & Woods reissued an “underperform” rating and issued a $240.00 target price on shares of Arthur J. Gallagher & Co. in a research report on Wednesday, June 26th. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $263.00.

Insider Transactions at Arthur J. Gallagher & Co.

In related news, CFO Douglas K. Howell sold 16,000 shares of the business’s stock in a transaction on Friday, May 10th. The shares were sold at an average price of $248.41, for a total transaction of $3,974,560.00. Following the completion of the transaction, the chief financial officer now owns 80,952 shares in the company, valued at $20,109,286.32. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In other Arthur J. Gallagher & Co. news, VP Scott R. Hudson sold 10,000 shares of the company’s stock in a transaction on Tuesday, June 18th. The shares were sold at an average price of $263.45, for a total value of $2,634,500.00. Following the completion of the transaction, the vice president now owns 93,730 shares in the company, valued at $24,693,168.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Douglas K. Howell sold 16,000 shares of the company’s stock in a transaction on Friday, May 10th. The shares were sold at an average price of $248.41, for a total transaction of $3,974,560.00. Following the completion of the transaction, the chief financial officer now owns 80,952 shares of the company’s stock, valued at approximately $20,109,286.32. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 53,165 shares of company stock valued at $13,629,049. 1.60% of the stock is currently owned by company insiders.

Arthur J. Gallagher & Co. Company Profile

Arthur J. Gallagher & Co, together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide. It operates in Brokerage and Risk Management segments. The Brokerage segment offers retail and wholesale insurance and reinsurance brokerage services; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; and acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverages to underwriting enterprises.