AJG stock: buy or sell?

AJG stock price: $96.45 0.42% At close on January 17th, 2020

Updated on:
January 17th, 2020

5

Arthur J. Gallagher gained 0.42% to $96.45 after topping to all time highs yesterday. Counting Friday, it's been 3 climbing days in a row, adding $1.36 or 1.43%.

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?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Having a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups work for Arthur J. Gallagher stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Arthur J. Gallagher stock a buy?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we detected 10 ratings published for AJG stock in the last month.

The general sentiment of these ratings is bullish for AJG stock, with 9 positive ratings.
Is AJG a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-24SunTrust Banksn/aBuy
2019-8-7Credit Suisse Groupn/aOutperform
2019-7-1Barclaysn/aOverweight
2019-6-14Wells Fargo & Con/aOutperform
2019-6-14Wells Fargo & Con/aOutperform
2019-5-22Barclaysn/aOverweight
2019-4-29Morgan StanleyEqual WeightEqual Weight
2019-4-26Wells Fargo & Con/aBuy
2019-4-26SunTrust Banksn/aBuy
2019-4-1BarclaysOverweightOverweight

AJG stock analysis

Daily outlook

After marking all time highs yesterday, Arthur J. Gallagher gained 0.42% yesterday to $96.45.

After reaching all time highs yesterday, Arthur J. Gallagher gained 0.42% to $96.45. AJG broke out again over $96.18 after a 1.47% correction started on Jan 10th. On November, SMA50d and SMA100d crossed up triggering a rise of 5.21%. Since price and SMA100d lines crossed up on October, AJG climbed $8.67 (9.88%). Yesterday, AJG hit new all time highs, pushing higher previous ATH of $96.43 recorded on Jan 16th. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

AJG stock chart (daily)

Weekly outlook

Arthur J. Gallagher shares touched new all time highs back again this week, setting highs to $96.70. Shares closed at $96.45 and raised 1.06% during the week. With this, it's been 3 green weeks in a row, gaining $1.70 or 1.78%.

Arthur J. Gallagher stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Since SMA10d and SMA20w crossed up by mid November 2019, AJG price climbed $4.94 per share (5.40%). By mid October 2019 AJG price bounced up over the SMA of 20 weeks that acted as support stopping new slides.

AJG stock chart (weekly)

AJG stock price history

AJG stock went public on June 20th, 1984 with a price of $0.001. Since then, AJG stock surged a inf%, with an average of inf% per year. 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 yesterday with a price of $96.70.

AJG stock price target is $96.00

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We detected 10 price forecasts for Arthur J. Gallagher stock released in the last month:
AJG stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-24SunTrust BanksRaises Target$102.00$108.005.9%
2019-8-7Credit Suisse GroupReiterates$88.00$93.005.7%
2019-7-1BarclaysRaises Target$97.00$100.003.1%
2019-6-14Wells Fargo & CoReiterates$93.00$100.007.5%
2019-6-14Wells Fargo & CoRaises Target$93.00$100.007.5%
2019-5-22BarclaysRaises Target$93.00$97.004.3%
2019-4-29Morgan StanleyRaises Target$77.00$81.005.2%
2019-4-26Wells Fargo & CoReiteratesn/a$93.00-
2019-4-26SunTrust BanksRaises Targetn/a$95.00-
2019-4-1BarclaysRaises Target$87.00$93.006.9%
(in average)$91.30$96.005.0%
Moving in a range from $108.00 and $81.00, the price forecast for Arthur J. Gallagher stock is $96.00. In average, analysts' outlook on AJG price forecast is positive, increasing the forecast by a 5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when Arthur J. Gallagher published its last earnings report, it . As soon as we get its actual EPS from the earnings report, we will extend this report.
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

In 2018, Arthur J. Gallagher annual sales skyrocketed a superb 10.96% to $6,934.00 million USD from $6,249.00 marked in 2017. In contrast, its earnings margin (compared to revenues) raised to 9.14%, that is $633.50 million.

To have an updated view of the financial situation of Arthur J. Gallagher, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Arthur J. Gallagher TTM sales up to March 2019 were $7,029.80 and earnings were $693.90 M dollars. When comparing this TTM figures with the last reported annuality, we can esteem Arthur J. Gallagher business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, grew a slightly good 1.38%. Likewise, profit margin (net income/revenues) remained stable at 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 posted $1,933.50 M in sales for 2019-Q1, a 16.66% up compared to previous quarter. Reported quarter earnings marked $334.10 M with a profit margin of 17.28%. Profit margin rocketed 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 good increase 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 buy shares of a company, it's always worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Arthur J. Gallagher, 0.84% of all outstanding shares are owned by its staff.

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

The following table compares ownership indicators for other stocks related to Arthur J. Gallagher:

AJG
Market cap$18.0 B
Total shares186.5 M
Float shares184.8 M
  - Institutional holdings (%)85.9%
  - Insider holdings (%)0.8%
Shares in short selling0.0%

AJG summary

Friday, January 17th, 2020
Open$96.33
Close$96.45
Day range$96.12 - $96.70
Previous close$96.05
Session gain0.42%
Average true range$0.92
50d mov avg$93.63
100d mov avg$91.12
200d mov avg$88.26
Daily patternlb01c
Weekly pattern lt06a

Arthur J. Gallagher performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Arthur J. Gallagher, the comparison is made against .
Stock3m6m12m
AJGArthur J. Gallagh...8.21%6.05%32.20%

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