Factors Likely to Have Influenced 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 04/29/2021 after market close. The report will be for the fiscal Quarter ending Mar 2021. According to Zacks Investment Research, based on 7 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.83. The reported EPS for the same quarter last year was $1.83.

Arthur J. Gallagher & Co. last posted its earnings results on January 27th, 2021. The financial services provider reported $0.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.78 by $0.10. The business had revenue of $1.66 billion for the quarter, compared to the consensus estimate of $1.55 billion. Arthur J. Gallagher & Co. has generated $3.65 earnings per share over the last year and currently has a price-to-earnings ratio of 35.1. Arthur J. Gallagher & Co. has confirmed that its next quarterly earnings report will be published on Thursday, April 29th, 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 $127.36, predicting that the stock has a possible downside of 9.07%. The high price target for AJG is $155.00 and the low price target for AJG is $97.00. There are currently 1 sell rating, 6 hold ratings, 5 buy ratings and 1 strong buy rating 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 5 buy ratings, 6 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $127.36, Arthur J. Gallagher & Co. has a forecasted downside of 9.1% from its current price of $140.06. Arthur J. Gallagher & Co. has only been the subject of 3 research reports in the past 90 days.

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

Arthur J. Gallagher & Co. has a dividend yield of 1.39%, which is in the bottom 25% of all stocks that pay dividends. Arthur J. Gallagher & Co. has only been increasing its dividend for 1 years. The dividend payout ratio of Arthur J. Gallagher & Co. is 52.60%. 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 40.68% 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 $847,537.00 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 35.10, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 23.88. The P/E ratio of Arthur J. Gallagher & Co. is 35.10, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 23.12. 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 5.01. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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