William Blair Has Pessimistic Outlook of AJG Q4 Earnings

Arthur J. Gallagher & Co. (NYSE:AJG) – Analysts at William Blair lowered their Q4 2025 earnings per share (EPS) estimates for shares of Arthur J. Gallagher & Co. in a research report issued to clients and investors on Friday, October 31st. William Blair analyst A. Klauber now expects that the financial services provider will post earnings per share of $2.47 for the quarter, down from their previous forecast of $2.51. The consensus estimate for Arthur J. Gallagher & Co.’s current full-year earnings is $11.54 per share. William Blair also issued estimates for Arthur J. Gallagher & Co.’s FY2026 earnings at $13.30 EPS.

Arthur J. Gallagher & Co. (NYSE:AJG) last issued its earnings results on Thursday, October 30th. The financial services provider reported $2.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.51 by ($0.19). Arthur J. Gallagher & Co. had a return on equity of 13.17% and a net margin of 14.54%.The firm had revenue of $3.33 billion during the quarter, compared to analyst estimates of $3.34 billion. During the same period in the previous year, the company earned $2.26 EPS. Arthur J. Gallagher & Co.’s revenue for the quarter was up 20.2% on a year-over-year basis.

Several other equities research analysts also recently commented on AJG. Evercore ISI cut their target price on shares of Arthur J. Gallagher & Co. from $370.00 to $353.00 and set an “outperform” rating on the stock in a research report on Friday. UBS Group lifted their target price on Arthur J. Gallagher & Co. from $322.00 to $329.00 and gave the stock a “neutral” rating in a report on Friday, September 19th. Keefe, Bruyette & Woods cut their price objective on Arthur J. Gallagher & Co. from $315.00 to $275.00 and set a “market perform” rating on the stock in a research note on Friday. Erste Group Bank reaffirmed a “hold” rating on shares of Arthur J. Gallagher & Co. in a research note on Wednesday, July 23rd. Finally, Piper Sandler dropped their target price on shares of Arthur J. Gallagher & Co. from $340.00 to $295.00 and set an “overweight” rating on the stock in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, Arthur J. Gallagher & Co. currently has a consensus rating of “Moderate Buy” and a consensus price target of $326.40.

Arthur J. Gallagher & Co. Stock Performance

Shares of AJG stock opened at $249.83 on Monday. The business’s 50-day moving average price is $294.70 and its 200-day moving average price is $309.90. Arthur J. Gallagher & Co. has a 12 month low of $242.75 and a 12 month high of $351.23. The firm has a market capitalization of $64.06 billion, a price-to-earnings ratio of 35.49 and a beta of 0.73. The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 0.52.

Arthur J. Gallagher & Co. Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 19th. Investors of record on Friday, December 5th will be given a dividend of $0.65 per share. The ex-dividend date is Friday, December 5th. This represents a $2.60 annualized dividend and a yield of 1.0%. Arthur J. Gallagher & Co.’s dividend payout ratio is presently 38.86%.

Insider Activity

In other news, VP Scott R. Hudson sold 12,855 shares of the stock in a transaction that occurred on Monday, September 8th. The shares were sold at an average price of $297.60, for a total transaction of $3,825,648.00. Following the completion of the transaction, the vice president directly owned 85,920 shares of the company’s stock, valued at $25,569,792. This represents a 13.01% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Douglas K. Howell sold 8,000 shares of Arthur J. Gallagher & Co. stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $299.54, for a total transaction of $2,396,320.00. Following the completion of the sale, the chief financial officer directly owned 100,777 shares in the company, valued at $30,186,742.58. This trade represents a 7.35% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 29,855 shares of company stock worth $8,916,928. Insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On Arthur J. Gallagher & Co.

A number of large investors have recently modified their holdings of AJG. Fairfield Financial Advisors LTD lifted its holdings in shares of Arthur J. Gallagher & Co. by 21.4% during the second quarter. Fairfield Financial Advisors LTD now owns 9,961 shares of the financial services provider’s stock valued at $3,189,000 after purchasing an additional 1,758 shares in the last quarter. Petra Financial Advisors Inc. purchased a new position in Arthur J. Gallagher & Co. in the 2nd quarter worth about $812,000. IFM Investors Pty Ltd lifted its stake in Arthur J. Gallagher & Co. by 5.7% during the 1st quarter. IFM Investors Pty Ltd now owns 43,953 shares of the financial services provider’s stock valued at $15,174,000 after acquiring an additional 2,362 shares during the period. Sigma Investment Counselors Inc. grew its stake in shares of Arthur J. Gallagher & Co. by 3.8% in the second quarter. Sigma Investment Counselors Inc. now owns 32,980 shares of the financial services provider’s stock worth $10,557,000 after acquiring an additional 1,217 shares during the period. Finally, Chicago Partners Investment Group LLC raised its holdings in shares of Arthur J. Gallagher & Co. by 87.7% during the second quarter. Chicago Partners Investment Group LLC now owns 20,846 shares of the financial services provider’s stock valued at $6,479,000 after purchasing an additional 9,739 shares during the last quarter. 85.53% of the stock is currently owned by institutional investors.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co engages in the provision of insurance brokerage, reinsurance brokerage, consulting, and third-party claims settlement and administration services. It operates through the following segments: Brokerage, Risk Management, and Corporate. The Brokerage segment consists of retail and wholesale insurance brokerage operations.