Arthur J. Gallagher & Co. provides global services in insurance and reinsurance brokerage, consulting, and claims. It operates in two segments: Brokerage and Risk Management. It collaborates with other brokers and underwriters to offer specialized insurance products. It has been in business since 1927 and is located in Illinois.
Based on recent data, the revenue of Q2 2023 was $2.44 Billion with a net income of 234.50 Million. Moreover, the AJG stock’s estimated EPS for Q2 23 was 1.859, and the reported EPS was 1.90 which gave a negative surprise of 2.23%. Recently, it publicized its dividend of $0.55 on August 31st, 2023 whose payment date is September 15th.
AJG has lowered its debt-to-equity ratio from 77.3% to 68.3% in the last 5 years. Its debt is well covered by its operating cash flow (34%). Its interest payments on its debt are also well covered by its earnings before interest and taxes (EBIT) (50.6x coverage) as per a financial website that provides analysis and insights on stocks, Simply Wall St.
According to Simply Wall, AJG has increased its earnings by 14.2% per year in the last 5 years. Its earnings growth in the last year (5.2%) was higher than the insurance industry average (3.3%).
AJG’s revenue is expected to grow faster than the US market in the next 3 years (12.7% per year vs. 7.8% per year). AJG’s earnings are also expected to grow significantly in the next 3 years (25.3% per year vs. 15.6% per year).
AJG Stock Price Technical Analysis in 1-D Timeframe
AJG stock price was at $230.14 with an intraday decrease of 0.57%. AJG stock’s average volume is 701.277K and the current volume is 1.692 Million, which is above average. The stock has a market cap of $49.597 Billion and floating shares are 213.016 Million.
At the time of publishing, Arthur J. Gallagher & Co. (NYSE: AJG) is trading above the major 20, and 50-day EMA (exponential moving averages). The MACD line and signal line are above the zero line and the histogram width is lean. The current value of RSI is 57.76 points. The RSI curve shows consolidation signs. Collectively, the stock is giving consolidation to bullish views.
Arthur J. Gallagher & Co. (NYSE: AJG) stock price has been rising steadily in the last six months, gaining 25.99% and making higher highs and higher lows. The price action shows that the stock has found support at $174 and has followed a strong trendline that indicates the buyers’ strength.
The AJG stock has not shown any signs of selling pressure or profit booking after the last two dividends and Q2 earnings, suggesting that the investors are confident and optimistic about the company’s performance.
However, if the price breaks the trendline, it may trigger some profit booking and cause a correction in the stock price. Therefore, the AJG stock may continue to surge as long as it stays above the trendline, but it may also face some downside risk if it falls below it.
The current stock price of AJG stock might achieve more if it manages to keep following trendline support. There is a possibility for the price to move upward and make new highs, and the next resistance level could be between $232 and $240.
On the other hand, if the AJG stock price breaks below the previous swing low and manages to slip the trendline as well, then the probable support would become $226 and $219 (also fibo 23.60% level).
Summary
Arthur J. Gallagher & Co. (NYSE: AJG) stock price is showing a bullish trend and the stock has managed to ride on the trendline for the last six months. However, the technical indicators are giving consolidation to bullish views as long as it is above the trendline. The scenario can reverse if the AJG stock slips the trendline and declines.
Technical Levels
- Support levels: $226 and $219
- Resistance levels: $232 and $240
Disclaimer
In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/09/18/ajg-stock-forecast-can-profit-taking-drag-nyse-ajg-down/