Arthur J. Gallagher & Co. (NYSE: AJG) has seen a rise in its stock price by 0.24 in relation to its previous close of 262.00. However, the company has experienced a 3.60% gain in its stock price over the last five trading sessions. zacks.com reported 2024-07-02 that Arthur J. Gallagher’s (AJG) buyout of Cornerstone is set to enhance its capabilities and expand its operations in the regions of San Bernardino and Riverside.
Is It Worth Investing in Arthur J. Gallagher & Co. (NYSE: AJG) Right Now?
Arthur J. Gallagher & Co. (NYSE: AJG) has a higher price-to-earnings ratio of 53.19x compared to its average ratio. AJG has 36-month beta value of 0.73. Analysts have mixed views on the stock, with 4 analysts rating it as a “buy,” 3 as “overweight,” 8 as “hold,” and 1 as “sell.”
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The public float for AJG is 216.03M, and currently, short sellers hold a 1.30% ratio of that float. The average trading volume of AJG on July 04, 2024 was 847.22K shares.
AJG’s Market Performance
The stock of Arthur J. Gallagher & Co. (AJG) has seen a 3.60% increase in the past week, with a 3.79% rise in the past month, and a 7.03% gain in the past quarter. The volatility ratio for the week is 1.58%, and the volatility levels for the past 30 days are at 1.66% for AJG. The simple moving average for the past 20 days is 1.52% for AJG’s stock, with a 8.77% simple moving average for the past 200 days.
Analysts’ Opinion of AJG
Many brokerage firms have already submitted their reports for AJG stocks, with Truist repeating the rating for AJG by listing it as a “Hold.” The predicted price for AJG in the upcoming period, according to Truist is $255 based on the research report published on April 10, 2024 of the current year 2024.
TD Cowen, on the other hand, stated in their research note that they expect to see AJG reach a price target of $249. The rating they have provided for AJG stocks is “Market Perform” according to the report published on January 10th, 2024.
Jefferies gave a rating of “Hold” to AJG, setting the target price at $233 in the report published on January 09th of the current year.
AJG Trading at 4.53% from the 50-Day Moving Average
After a stumble in the market that brought AJG to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -1.41% of loss for the given period.
Volatility was left at 1.66%, however, over the last 30 days, the volatility rate increased by 1.58%, as shares surge +2.90% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +10.57% upper at present.
During the last 5 trading sessions, AJG rose by +3.60%, which changed the moving average for the period of 200-days by +14.12% in comparison to the 20-day moving average, which settled at $259.08. In addition, Arthur J. Gallagher & Co. saw 16.79% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at AJG starting from Hudson Scott R, who sale 10,000 shares at the price of $263.45 back on Jun 18 ’24. After this action, Hudson Scott R now owns 93,730 shares of Arthur J. Gallagher & Co., valued at $2,634,530 using the latest closing price.
Bay Walter D., the General Counsel of Arthur J. Gallagher & Co., sale 8,303 shares at $262.74 during a trade that took place back on Jun 18 ’24, which means that Bay Walter D. is holding 36,388 shares at $2,181,547 based on the most recent closing price.
Stock Fundamentals for AJG
Current profitability levels for the company are sitting at:
- 0.21 for the present operating margin
- 0.67 for the gross margin
The net margin for Arthur J. Gallagher & Co. stands at 0.1. The total capital return value is set at 0.1. Equity return is now at value 10.34, with 2.06 for asset returns.
Based on Arthur J. Gallagher & Co. (AJG), the company’s capital structure generated 0.42 points at debt to capital in total, while cash flow to debt ratio is standing at 0.29. The debt to equity ratio resting at 0.73. The interest coverage ratio of the stock is 6.91.
Currently, EBITDA for the company is 2.56 billion with net debt to EBITDA at 2.46. When we switch over and look at the enterprise to sales, we see a ratio of 6.07. The receivables turnover for the company is 2.55for trailing twelve months and the total asset turnover is 0.17.
Conclusion
To put it simply, Arthur J. Gallagher & Co. (AJG) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
