Eagle Capital Management Adds $605M in Arthur J. Gallagher & Co. ($AJG)
Eagle Capital Management acquired 2.67 million shares of Arthur J. Gallagher & Co., establishing a new position.
Key Points
- Eagle Capital Management acquired 2,665,572 shares of Arthur J. Gallagher & Co., valued at approximately $588.9 million.
- Arthur J. Gallagher & Co. trades on the NYSE under the ticker AJG, with a market cap of $56.19 billion and a P/E ratio of 35.3.
- Recent insider activity includes buys and sells by executives, and analysts from firms like Jefferies and UBS upgraded the stock to 'buy'.
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Eagle Capital Management has made a significant move by taking a new position in Arthur J. Gallagher & Co. (NYSE: AJG). According to the latest Form 13F filing with the SEC, the fund acquired 2,665,572 shares, valued at approximately $588.9 million, as of the reporting period ending on May 15, 2026.
What Changed in Eagle Capital Management's Arthur J. Gallagher & Co. Position
Eagle Capital Management's decision to acquire 2,665,572 shares marks a new position in Arthur J. Gallagher & Co. The shares were bought at an average cost basis of $227.72 each, resulting in a total value of nearly $588.9 million. This was a fresh investment, as the fund previously held no shares in the company.
Other Institutional Activity in Arthur J. Gallagher & Co.
JPMorgan Chase & Co. reduced its holdings in Arthur J. Gallagher & Co. by 745,202 shares, ending with 19,568,047 shares worth about $4.23 billion. BlackRock, Inc. increased its stake by 68,175 shares, bringing its total to 19,307,796 shares valued at approximately $4.18 billion. Vanguard Capital Management LLC established a new position with 16,699,898 shares, valued at $3.62 billion. FMR LLC cut its holdings by 489,719 shares, leaving it with 14,620,963 shares worth about $3.17 billion. Meanwhile, Capital World Investors boosted its stake by 1,204,349 shares to 13,817,720 shares, valued at $2.99 billion.
Arthur J. Gallagher & Co. Stock Down 15.1%
Shares of Arthur J. Gallagher & Co. (NYSE: AJG) traded near $220.94. The company has a market cap of $56.19 billion and a P/E ratio of 35.3. Its forward P/E stands at 14.7, with a beta of 0.533. The stock's 52-week range is between $190.75 and $327.34, with a 50-day moving average of $210.76 and a 200-day moving average of $245.34. The company maintains a current ratio of 1.063 and a quick ratio of 0.187, with a debt-to-equity ratio of 56.18.
$AJG stock price
Daily closing prices, year to date. Not investment advice.
Recent Earnings
In its latest earnings report, Arthur J. Gallagher & Co. reported revenue of $14.20 billion, reflecting a growth rate of 34.6%. The company's earnings per share (EPS) were $6.19, with a net margin of 11.35% and a return on equity (ROE) of 7.01%. The next earnings report is expected on April 30, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
5 target cuts vs 0 raises.
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EPS & revenue
EPS met estimates. Revenue missed estimates by 0.5%.
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Profit surprise
EBITDA missed by 13 percent. Operating income missed by 27 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
1 upgrade, 5 target cuts.
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Earnings quality
Gross margin up 36.8 points. Operating margin down 2.5 points. Positive free cash flow.
Earnings Call Summary
Gallagher delivered a strong first quarter with 28 percent total revenue growth, driven by 5 percent organic growth plus 23 percent from the AssuredPartners acquisition. The company beat on EPS at 4.47 dollars per share versus 4.40 dollars expected, and expanded brokerage margins by 50 basis points. Management said their new business hit ratio improved to 45 percent from 32 percent historically using digital tools, and they are confident about durability even as property pricing moderates.
Guidance Management reaffirmed its full year outlook for organic growth of 6 percent and underlying margin expansion of 40 to 60 basis points. They expect second quarter brokerage organic growth of 5 percent and full year of 5.5 percent, with property pricing remaining down about 7 percent but offset by strength in casualty and benefits.
Severe negative reset. The report materially damaged the forward outlook and likely forces major downward revisions.
Dividend
Arthur J. Gallagher & Co. offers an annual dividend rate of $2.80, yielding 1.27%. The dividend payout ratio is 42.88%.
Insider Buying and Selling at Arthur J. Gallagher & Co.
Several insiders have been active recently. On June 2, 2026, Cary Richard, the Controller and CAO, sold 3,000 shares at $206 each. On June 1, Christopher Miskel and David Johnson bought 194 and 237 shares, respectively, at $206.1 per share. On May 26, CEO Patrick Gallagher Jr. sold 14,698 shares, while COO Patrick Murphy Gallagher bought the same amount.
Analysts Set New Price Targets
On June 11, 2026, Jefferies upgraded Arthur J. Gallagher & Co. to a 'buy' rating with a price target of $265. UBS followed suit on June 9 with a 'buy' rating and a $250 price target. Morgan Stanley maintained its 'buy' rating with a $240 target on May 21. The consensus among 19 analysts is a 'buy', with a mean target price of $264.11.
About Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co. is a global insurance brokerage and risk management services firm headquartered in Rolling Meadows, Illinois. Founded in 1927, the company operates in the brokerage and risk management segments, providing insurance and reinsurance brokerage, consulting, and claims settlement services. Under the leadership of CEO J. Patrick Gallagher Jr., it serves a diverse clientele across various sectors.
Bottom Line
Eagle Capital Management's new position in Arthur J. Gallagher & Co. is a noteworthy development, reflecting the fund's confidence in the company's prospects. Investors often track such filings to gauge institutional sentiment, though it's important to remember that 13F filings are backward-looking and may not represent current positions. Arthur J. Gallagher & Co.'s solid earnings and recent analyst upgrades further underscore its standing in the financial services sector.
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