In a report released yesterday, Elyse Greenspan from Wells Fargo maintained a Buy rating on Arthur J Gallagher & Co (AJG), with a price target of $85. The company’s shares closed yesterday at $79.07, close to its 52-week high of $81.09.
Greenspan observed:
“We are adjusting our EPS estimates lower in 2019 (to reflect the recent divesture) and higher in 2020 (to reflect the JLT transaction) and modest other changes in the CFO commentary. EPS estimates are now $3.79 and $4.45 from $3.87 and $4.40, respectively. We are maintaining our price target of $85, which is based on an 18x multiple on 2019 cash earnings (ex-clean energy) and assigning $5/share value to the NPV of the company’s tax credits. We reaffirm our Outperform rating and think AJG is on track to continue to report industry leading organic growth.”
According to TipRanks.com, Greenspan is a 3-star analyst with an average return of 2.9% and a 62.0% success rate. Greenspan covers the Financial sector, focusing on stocks such as American International Group, AXA Equitable Holdings Inc, and Renaissancere Holdings Ltd.
Arthur J Gallagher & Co has an analyst consensus of Moderate Buy, with a price target consensus of $80.67.
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Based on Arthur J Gallagher & Co’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $117 million. In comparison, last year the company had a net profit of $105 million.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. Last month, Walter Bay, the General Counsel of AJG sold 13,800 shares for a total of $1,104,000.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Arthur J. Gallagher & Co. engages in the provision of insurance brokerage, consulting, and third party claims settlement and administration services to both domestic and international entities. It operates through the following business segments: Brokerage, Risk Management and Corporate.
