AJG stock: buy or sell?

AJG stock price: $80.17 -0.76% At close on March 27th, 2020

Updated on:
March 27th, 2020

2

Arthur J. Gallagher declined an ugly -0.76% and closed at $80.17. On Tuesday AJG skyrocketed an exceptional 11.69%. On March 19th AJG plummed a scary -5.67%.

Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage, consulting, and third party claims settlement and administration services to entities in the United States and internationally.

Should I buy AJG stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Arthur J. Gallagher stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Arthur J. Gallagher stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't find any rating for AJG stock for the last 30 days.

AJG stock analysis

Daily outlook

Arthur J. Gallagher declined an ugly -0.76% and closed at $80.17.

Arthur J. Gallagher closed yesterday at $80.17 and declined an ugly -0.76%. Since last Mar 12th when AJG stock price broke down the SMA200d line, it slid $-14.81 per share (-15.59%). Since November when SMA50d and SMA100d crossed up, AJG price slipped $-11.11 per share (-12.17%). On Feb 18th, AJG hit a new all time high, pushing higher than on Feb 14th tops. Check different trading setups that use ATHs as triggers.

AJG stock chart (daily)

Weekly outlook

After sliding a hair-raising -25.82% in a week last week, Arthur J. Gallagher closed this week at $80.17 and rocketed an astounding 12.00%.

Not so far away is the last price record Arthur J. Gallagher marked by mid February, but since then it dropped a 26.45%. Since early March, when AJG stock price broke down the 40-weeks moving avarage line, it slid $-20.67 per share (-20.50%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support. Since SMA10w and SMA20w crossed up by mid November 2019, AJG price slid a -12.03%.

AJG stock chart (weekly)

AJG stock price history

AJG IPO was on June 20th, 1984 at $0.00 per share1. Since then, AJG stock grew a inf%, with a yearly average of inf%. If you had invested right after AJG's IPO a $1,000 in AJG stock in 1984, it would worth $inf today.

1: Adjusted price after possible price splits or reverse-splits.

AJG stock historical price chart

AJG stock reached all-time highs on February 18th with a price of $109.00.

AJG stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' AJG stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not detected any price prediction for Arthur J. Gallagher stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when Arthur J. Gallagher posted its last earnings report, it . As soon as we get its posted EPS from the earnings report, we will extend this review.
AJG earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.01n/a
2017-Q32017-10-260.790.812.5%
2017-Q42018-01-250.750.829.3%
2018-Q12018-05-011.511.520.7%
2018-Q22018-07-260.620.620.0%
2018-Q32018-10-250.770.781.3%
2018-Q42019-01-310.510.533.9%
2019-Q12019-04-291.65n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a superb gain of 10.96% to $6,934.00 M USD. Instead, its income margin (compared to sales) appreciated to 9.14%, that is $633.50 million.

Arthur J. Gallagher presents anual results in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Arthur J. Gallagher TTM sales up to March 2019 were $7,029.80 and earnings $693.90 M dollars. If we compare this TTM figures with the last reported annuality, we can esteem Arthur J. Gallagher business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, inched a slightly fine 1.38%. Regarding profit margin, Arthur J. Gallagher stayed steady 0.73% to 9.14%

AJG annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$3,170 M-$269 M8.5%-
2014$4,627 M45.95%$303 M6.6%12.96%
2015$5,392 M16.55%$357 M6.6%17.60%
2016$5,595 M3.75%$414 M7.4%16.14%
2017$6,249 M11.69%$481 M7.7%16.14%
2018$6,934 M10.96%$634 M9.1%31.62%
TTM $7,030 M1.38%$694 M9.9%9.53%

Quarterly financial results

Arthur J. Gallagher reported $1,933.50 million in revenues for 2019-Q1, a 16.66% improvement compared to previous quarter. Reported quarter income marked $334.10 M with a profit margin of 17.28%. Profit margin climbed a 10.20% compared to previous quarter when profit margin was 7.08%. When comparing revenues to same quarter last year, Arthur J. Gallagher sales marked a nice growth and escalated a 5.21%.
AJG quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,570 M-$172 M10.9%-
2017-Q3$1,570 M0.00%$130 M8.3%-24.14%
2017-Q4$1,430 M-8.92%$53 M3.7%-59.13%
2018-Q1$1,838 M28.51%$274 M14.9%413.51%
2018-Q2$1,660 M-9.65%$115 M6.9%-58.02%
2018-Q3$1,779 M7.11%$128 M7.2%11.05%
2018-Q4$1,657 M-6.81%$117 M7.1%-8.07%
2019-Q1$1,934 M16.66%$334 M17.3%184.83%

Arthur J. Gallagher ownership

When you are planning to invest in a stock, it's worth to have a look its ownership structure.

Arthur J. Gallagher shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.89% of all shares.

Bearish positions for AJG stock account 0.00%, no big difference from last month.

For a better understanding, the following table shows ownership data compared to other related stocks:

AJG
Market cap$15.1 B
Total shares188.1 M
Float shares186.4 M
  - Institutional holdings (%)85.4%
  - Insider holdings (%)0.9%
Shares in short selling0.0%

AJG summary

Friday, March 27th, 2020
Open$77.88
Close$80.17
Day range$77.68 - $83.10
Previous close$80.78
Session gain-0.76%
Average true range$8.58
50d mov avg$96.09
100d mov avg$94.53
200d mov avg$91.40
Daily patternlt03a
Weekly pattern

Arthur J. Gallagher performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Arthur J. Gallagher against in the following table:
Stock3m6m12m
AJGArthur J. Gallagh...-15.03%-8.92%4.58%

Arthur J. Gallagher competitors

Unfortunately, we could not find any public company that could be defined as Arthur J. Gallagher competitor. This doesn't mean Arthur J. Gallagher does not have any competitor in the market, it's just we could not detected it.

    Latest AJG stock news