AJG stock: buy or sell?
August 23rd, 2019
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-8-7||Credit Suisse Group||n/a||Outperform|
|2019-6-14||Wells Fargo & Co||n/a||Outperform|
|2019-6-14||Wells Fargo & Co||n/a||Outperform|
|2019-4-29||Morgan Stanley||Equal Weight||Equal Weight|
|2019-4-26||Wells Fargo & Co||n/a||Buy|
AJG stock analysis
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.
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 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 $94.70Predicting 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-8-7||Credit Suisse Group||Reiterates||$88.00||$93.00||5.7%|
|2019-6-14||Wells Fargo & Co||Reiterates||$93.00||$100.00||7.5%|
|2019-6-14||Wells Fargo & Co||Raises Target||$93.00||$100.00||7.5%|
|2019-4-29||Morgan Stanley||Raises Target||$77.00||$81.00||5.2%|
|2019-4-26||Wells Fargo & Co||Reiterates||n/a||$93.00||-|
|2019-4-26||SunTrust Banks||Raises Target||n/a||$95.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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%.
|2013||$3,170 M||-||$269 M8.5%||-|
|2014||$4,627 M||45.95%||$303 M6.6%||12.96%|
|2015||$5,392 M||16.55%||$357 M6.6%||17.60%|
|2016||$5,595 M||3.75%||$414 M7.4%||16.14%|
|2017||$6,249 M||11.69%||$481 M7.7%||16.14%|
|2018||$6,934 M||10.96%||$634 M9.1%||31.62%|
|TTM||$7,030 M||1.38%||$694 M9.9%||9.53%|
Quarterly financial resultsArthur 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%.
|2017-Q2||$1,570 M||-||$172 M10.9%||-|
|2017-Q3||$1,570 M||0.00%||$130 M8.3%||-24.14%|
|2017-Q4||$1,430 M||-8.92%||$53 M3.7%||-59.13%|
|2018-Q1||$1,838 M||28.51%||$274 M14.9%||413.51%|
|2018-Q2||$1,660 M||-9.65%||$115 M6.9%||-58.02%|
|2018-Q3||$1,779 M||7.11%||$128 M7.2%||11.05%|
|2018-Q4||$1,657 M||-6.81%||$117 M7.1%||-8.07%|
|2019-Q1||$1,934 M||16.66%||$334 M17.3%||184.83%|
Arthur J. Gallagher ownershipWhen 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:
|Market cap||$16.3 B||$46.7 B||$10.2 B||$48.6 B||$25.1 B|
|Total shares||185.2 M||240.5 M||282.0 M||507.6 M||129.0 M|
|Float shares||183.8 M||233.0 M||234.4 M||506.0 M||128.4 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, August 23rd, 2019|
|Day range||$87.64 - $91.42|
|Average true range||$1.87|
|50d mov avg||$89.63|
|100d mov avg||$86.11|
|200d mov avg||$80.91|
Arthur J. Gallagher performanceStocks 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.
|AJGArthur J. Gallagh...||4.95%||10.33%||24.62%|
|BROBrown & Brown||13.97%||23.32%||20.49%|
|MMCMarsh & McLennan ...||0.81%||4.35%||15.86%|
|WLTWWillis Towers Wat...||9.71%||14.38%||34.25%|
Arthur J. Gallagher competitorsWe 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
- Seeking AlphaArthur J. Gallagher: Blessed BoredomApril 8, 2019