AJG stock: buy or sell?

AJG stock price: $88.02 -3.14% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

3

Arthur J. Gallagher shares eased -3.14% to $88.02 today.

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. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Arthur J. Gallagher stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean AJG will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Arthur J. Gallagher stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 9 ratings published for AJG stock in the last month.

The general sentiment of these ratings is bullish for AJG stock, with 8 positive ratings.
Is AJG a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
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

Shares of Arthur J. Gallagher ended today at $88.02 and eased a terrible -3.14%.

Arthur J. Gallagher shares eased -3.14% to $88.02 today. In this session, Arthur J. Gallagher stock crossed down the SMA50d line. If you are using SMA50d line as stop loss trigger, double check your position in this stock. On Jul 26th, AJG hit a new all time high, pushing higher than on July/18 tops. Check different trading setups that use ATHs as triggers.

AJG stock chart (daily)

Weekly outlook

Arthur J. Gallagher decreased a rough -1.89% this week.

From a weekly outlook, AJG marked an uptrend of rising tops and rising bottoms. Since its last top late July at $92.74, price slid and bounced up back from $85.90. Breaking down under $85.90 would cancel the current uptrend and it might test lower supports. Note that $92.74 might act as a resistance line. Not so far away is the last all-time high Arthur J. Gallagher marked late July. Since SMA10d and SMA20w crossed up by mid February, AJG price climbed $9.00 per share (11.39%). Late January 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 IPO was on June 20th, 1984 at $0.19 per share1. Since then, AJG stock grew a 46,226.30%, with a yearly average of 1,320.80%. If you had invested $1,000 in AJG stock in 1984, it would worth $462,263.00 today.

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

AJG stock historical price chart

AJG stock reached all-time highs on Jul/26 with a price of $92.74.

AJG stock price target is $94.70

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. 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. We detected 9 price forecasts for AJG stock published in the last month:
AJG stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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)$89.70$94.706.0%
Moving in a range from $100.00 and $81.00, the price target for Arthur J. Gallagher stock is $94.70. In average, analysts' outlook on AJG price target is positive, increasing the target by a 6.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when Arthur J. Gallagher posted its last earnings report, it gained a beatiful 6.64%. Unfortunately, reported EPS is not yet available in our database.
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 revenues boosted a phenomenal 10.96% to $6,934.00 M USD from $6,249.00 marked in 2017. Nevertheless, its profit margin (compared to sales) raised to 9.14%, that is $633.50 million.

Arthur J. Gallagher presents anual results in December, and to compare 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 income $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 sales up to March, compared to lastest yearly report, inched a slightly fine 1.38%. In line, profit margin (net income/sales) remained steady 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 reported $1,933.50 million in sales for 2019-Q1, a 16.66% up compared to previous quarter. Reported quarter earnings marked $334.10 million 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 decent gain 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 company, it's worth to overview 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, 1.08% 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:

AJGAONBROMMCWLTW
Market cap$16.3 B$46.7 B$10.2 B$48.6 B$25.1 B
Total shares185.2 M240.5 M282.0 M507.6 M129.0 M
Float shares183.8 M233.0 M234.4 M506.0 M128.4 M
  - Institutional holdings (%)86.5%91.0%8.1%88.5%95.0%
  - Insider holdings (%)1.1%1.2%33.8%0.2%0.5%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

AJG summary

Friday, August 23rd, 2019
Open$90.59
Close$88.02
Day range$87.64 - $91.42
Previous close$90.87
Session gain-3.14%
Average true range$1.87
50d mov avg$89.63
100d mov avg$86.11
200d mov avg$80.91
Daily pattern
Weekly pattern lb03a

Arthur J. Gallagher performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We chose Aon, Brown & Brown, Marsh & McLennan Companies and Willis Towers Watson Public as the bechmarking frame for Arthur J. Gallagher stock.
Stock3m6m12m
AJGArthur J. Gallagh...4.95%10.33%24.62%
AONAon9.43%13.35%34.80%
BROBrown & Brown13.97%23.32%20.49%
MMCMarsh & McLennan ...0.81%4.35%15.86%
WLTWWillis Towers Wat...9.71%14.38%34.25%

Arthur J. Gallagher competitors

We picked a few stocks to conform a list of Arthur J. Gallagher competitors to watch if you are interested in investing in AJG:

Latest AJG stock news