5 Best Insurance Brokerage Stocks To Buy Now

4. Arthur J. Gallagher & Co. (NYSE:AJG)

Number of Hedge Fund Holders: 36

Arthur J. Gallagher & Co. (NYSE:AJG) offers insurance and reinsurance brokerage, consulting, and third-party claims settlement and administration services to businesses and organizations across the globe. The company is divided into two main segments – Brokerage and Risk Management. On April 27, Arthur J. Gallagher & Co. (NYSE:AJG) declared a $0.55 per share quarterly dividend, in line with previous. The dividend is payable on June 16, to shareholders of record on June 2. 

On April 27, Arthur J. Gallagher & Co. (NYSE:AJG) reported a Q1 non-GAAP EPS of $3.03 and a revenue of $2.71 billion, outperforming Wall Street estimates by $0.04 and $20 million, respectively. 

Raymond James analyst C. Gregory Peters raised the firm’s price target on Arthur J. Gallagher & Co. (NYSE:AJG) on May 1 to $240 from $215 and reiterated a Strong Buy rating on the shares. The analyst believes that the company’s growth and margins will be above the industry average until 2024.

According to Insider Monkey’s fourth quarter database, 36 hedge funds were bullish on Arthur J. Gallagher & Co. (NYSE:AJG), compared to 37 funds in the last quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the biggest stakeholder of the company, with 1 million shares worth $193 million. 

Here is what Cooper Investors Global Equities Fund has to say about Arthur J. Gallagher & Co. (NYSE:AJG) in its Q1 2022 investor letter:

“In terms of underlying businesses, the portfolio holdings are going well and largely reported solid numbers during earnings season with positive language around the outlook for 2022. Our insurance broker Arthur J Gallagher is a stand-out performer, delivering low-double-digit organic revenue growth at the same time as margin expansion – this is a business that benefit from higher interest rates, emerging risks and inflating premiums. While rising rates, supply chain constraints and war in Europe represent a myriad of challenges for many industries, our view is that our management teams are highly experienced focused operators. They are well equipped to deal with these challenges, having shown great resilience and flexibility during many crises, the most recent example (COVID) proving yet again the power of their business models.”