Fintel reports that on September 20, 2023, Piper Sandler maintained coverage of Arthur J. Gallagher (NYSE:AJG) with a Neutral recommendation.
Analyst Price Forecast Suggests 1.82% Upside
As of August 31, 2023, the average one-year price target for Arthur J. Gallagher is 240.06. The forecasts range from a low of 200.99 to a high of $267.75. The average price target represents an increase of 1.82% from its latest reported closing price of 235.78.
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The projected annual revenue for Arthur J. Gallagher is 9,469MM, an increase of 7.16%. The projected annual non-GAAP EPS is 8.81.
Arthur J. Gallagher Declares $0.55 Dividend
On July 26, 2023 the company declared a regular quarterly dividend of $0.55 per share ($2.20 annualized). Shareholders of record as of September 1, 2023 received the payment on September 15, 2023. Previously, the company paid $0.55 per share.
At the current share price of $235.78 / share, the stock's dividend yield is 0.93%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.56%, the lowest has been 0.94%, and the highest has been 2.64%. The standard deviation of yields is 0.42 (n=234).
The current dividend yield is 1.52 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.43. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.22%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1766 funds or institutions reporting positions in Arthur J. Gallagher. This is an increase of 20 owner(s) or 1.15% in the last quarter. Average portfolio weight of all funds dedicated to AJG is 0.44%, an increase of 7.33%. Total shares owned by institutions decreased in the last three months by 19.78% to 203,035K shares. 
The put/call ratio of AJG is 0.58, indicating a bullish outlook.
What are Other Shareholders Doing?
Capital International Investors holds 9,501K shares representing 4.41% ownership of the company. In it's prior filing, the firm reported owning 9,494K shares, representing an increase of 0.08%. The firm increased its portfolio allocation in AJG by 7.72% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 6,679K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 6,565K shares, representing an increase of 1.70%. The firm increased its portfolio allocation in AJG by 7.73% over the last quarter.
Massachusetts Financial Services holds 5,718K shares representing 2.65% ownership of the company. In it's prior filing, the firm reported owning 5,450K shares, representing an increase of 4.69%. The firm increased its portfolio allocation in AJG by 15.97% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 5,100K shares representing 2.37% ownership of the company. In it's prior filing, the firm reported owning 4,949K shares, representing an increase of 2.95%. The firm increased its portfolio allocation in AJG by 7.11% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 4,966K shares representing 2.30% ownership of the company. In it's prior filing, the firm reported owning 4,954K shares, representing an increase of 0.24%. The firm increased its portfolio allocation in AJG by 10.45% over the last quarter.
Arthur J. Gallagher Background Information
(This description is provided by the company.)
Gallagher, a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. The company has operations in 49 countries and offers client-service capabilities in more than 150 countries around the world through a network of correspondent brokers and consultants.
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