Will stock surge before Earnings results? Arthur J. Gallagher & Co. (NYSE:AJG)

Earnings results for Arthur J. Gallagher & Co. (NYSE:AJG)

Arthur J. Gallagher & Co. is expected* to report earnings on 01/28/2021 after market close. The report will be for the fiscal Quarter ending Dec 2020. According to Zacks Investment Research, based on 7 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.77. The reported EPS for the same quarter last year was $0.58.

Arthur J. Gallagher & Co. last released its quarterly earnings results on October 29th, 2020. The financial services provider reported $1.08 earnings per share for the quarter, beating analysts’ consensus estimates of $0.92 by $0.16. The company had revenue of $1.81 billion for the quarter, compared to analyst estimates of $1.69 billion. Its revenue for the quarter was up .9% compared to the same quarter last year. Arthur J. Gallagher & Co. has generated $3.65 earnings per share over the last year and currently has a price-to-earnings ratio of 28.3. Arthur J. Gallagher & Co. has confirmed that its next quarterly earnings report will be published on Thursday, January 28th, 2021.

Analyst Opinion on Arthur J. Gallagher & Co. (NYSE:AJG)

13 Wall Street analysts have issued ratings and price targets for Arthur J. Gallagher & Co. in the last 12 months. Their average twelve-month price target is $124.14, predicting that the stock has a possible upside of 9.75%. The high price target for AJG is $145.00 and the low price target for AJG is $97.00. There are currently 1 sell rating, 5 hold ratings and 7 buy ratings for the stock, resulting in a consensus rating of “Hold.”

Arthur J. Gallagher & Co. has received a consensus rating of Hold. The company’s average rating score is 2.46, and is based on 7 buy ratings, 5 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $124.14, Arthur J. Gallagher & Co. has a forecasted upside of 9.8% from its current price of $113.11. Arthur J. Gallagher & Co. has been the subject of 8 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Arthur J. Gallagher & Co. (NYSE:AJG)

Arthur J. Gallagher & Co. has a dividend yield of 1.53%, which is in the bottom 25% of all stocks that pay dividends. Arthur J. Gallagher & Co. does not have a long track record of dividend growth. The dividend payout ratio of Arthur J. Gallagher & Co. is 49.32%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Arthur J. Gallagher & Co. will have a dividend payout ratio of 38.14% next year. This indicates that Arthur J. Gallagher & Co. will be able to sustain or increase its dividend.

Insiders buying/selling: Arthur J. Gallagher & Co. (NYSE:AJG)

In the past three months, Arthur J. Gallagher & Co. insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $5,331,241.00 in company stock. Only 1.40% of the stock of Arthur J. Gallagher & Co. is held by insiders. 81.99% of the stock of Arthur J. Gallagher & Co. is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Arthur J. Gallagher & Co. (NYSE:AJG

Earnings for Arthur J. Gallagher & Co. are expected to grow by 2.16% in the coming year, from $4.62 to $4.72 per share. The P/E ratio of Arthur J. Gallagher & Co. is 28.35, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 23.71. The P/E ratio of Arthur J. Gallagher & Co. is 28.35, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 21.51. Arthur J. Gallagher & Co. has a PEG Ratio of 2.37. PEG Ratios above 1 indicate that a company could be overvalued. Arthur J. Gallagher & Co. has a P/B Ratio of 4.05. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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