AON (NYSE:AON) Price Target Raised to $420.00

AON (NYSE:AON) had its price target boosted by TD Cowen from $416.00 to $420.00 in a research note released on Monday,Benzinga reports. TD Cowen currently has a buy rating on the financial services provider’s stock.

Other analysts have also recently issued reports about the company. Weiss Ratings upgraded AON from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, August 19th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of AON in a research note on Tuesday, September 1st. Wolfe Research cut shares of AON from a “hold” rating to a “strong sell” rating in a research report on Friday, September 11th. Roth Capital set a $380.00 price objective on shares of AON in a report on Tuesday, September 1st. Finally, Wall Street Zen cut shares of AON from a “hold” rating to a “sell” rating in a research note on Sunday, September 6th. Twelve investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $397.47.

AON Trading Down 1.2%

AON stock opened at $301.02 on Monday. AON has a 52-week low of $298.48 and a 52-week high of $382.34. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 1.34. The firm has a market cap of $63.85 billion, a P/E ratio of 16.59, a PEG ratio of 1.54 and a beta of 0.66. The company’s 50-day simple moving average is $347.22 and its 200-day simple moving average is $333.42.

AON (NYSE:AON) last announced its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share for the quarter, beating the consensus estimate of $3.80 by $0.01. The firm had revenue of $4.25 billion during the quarter, compared to analyst estimates of $4.28 billion. AON had a return on equity of 42.13% and a net margin of 22.27%.AON’s revenue for the quarter was up 2.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.49 EPS. As a group, equities analysts forecast that AON will post 18.94 EPS for the current fiscal year.

AON Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Monday, August 3rd were paid a dividend of $0.82 per share. This represents a $3.28 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Monday, August 3rd. AON’s payout ratio is 18.08%.

Insiders Place Their Bets

In related news, General Counsel Darren Zeidel sold 1,900 shares of the business’s stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total transaction of $717,744.00. Following the transaction, the general counsel directly owned 11,504 shares in the company, valued at approximately $4,345,751.04. The trade was a 14.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Lester B. Knight acquired 20,000 shares of the business’s stock in a transaction on Wednesday, September 2nd. The stock was acquired at an average price of $327.48 per share, with a total value of $6,549,600.00. Following the acquisition, the director owned 163,000 shares in the company, valued at $53,379,240. The trade was a 13.99% increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold 4,450 shares of company stock valued at $1,659,242 in the last ninety days. Insiders own 1.00% of the company’s stock.

Institutional Investors Weigh In On AON

Large investors have recently made changes to their positions in the stock. Aviva PLC increased its stake in AON by 2.0% during the fourth quarter. Aviva PLC now owns 333,454 shares of the financial services provider’s stock worth $117,669,000 after purchasing an additional 6,622 shares during the period. Handelsbanken Fonder AB boosted its stake in shares of AON by 9.1% in the fourth quarter. Handelsbanken Fonder AB now owns 67,034 shares of the financial services provider’s stock valued at $23,655,000 after purchasing an additional 5,585 shares during the period. The Manufacturers Life Insurance Company grew its holdings in shares of AON by 136.1% in the first quarter. The Manufacturers Life Insurance Company now owns 547,850 shares of the financial services provider’s stock valued at $176,835,000 after purchasing an additional 315,817 shares in the last quarter. Ally Financial Inc. purchased a new stake in AON during the 2nd quarter worth approximately $995,000. Finally, Entropy Technologies LP lifted its holdings in AON by 340.1% during the 4th quarter. Entropy Technologies LP now owns 38,629 shares of the financial services provider’s stock worth $13,631,000 after buying an additional 29,851 shares in the last quarter. 86.14% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting AON

Here are the key news stories impacting AON this week:

• Positive Sentiment: Strong demand for acquisition financing: Aon raised $13.5 billion through a bond offering to help fund its approximately $17 billion acquisition of USI. Orders reportedly reached about $65 billion, allowing the company to secure tighter pricing than initially indicated despite challenging credit-market conditions. AON’s USI Deal Drives $13.5B Bond Offering, Draws $65B in Orders
• Positive Sentiment: Insider buying provides a confidence signal: Chairman Lester Knight purchased 20,000 AON shares for approximately $6.5 million, increasing his existing position by a meaningful amount. Investors may view the transaction as evidence of management confidence in the company’s long-term prospects. Aon Chairman Lester Knight Buys 20,000 Shares
• Positive Sentiment: Analyst remains bullish: TD Cowen reportedly expects AON shares to rise, offering a positive counterpoint to current investor concerns. AON Stock Price Expected to Rise, TD Cowen Analyst Says
• Positive Sentiment: New growth opportunities: Aon is developing surety bonds for data-center grid upgrades and launched a capability to prioritize cyber-risk improvement opportunities. These initiatives could expand its role in infrastructure and cyber-risk advisory markets. Aon Developing Surety Bonds for Data-Centre Grid Upgrades Aon Launches New Cyber-Risk Capability
• Negative Sentiment: Debt and execution risk are the key overhangs: Funding the USI acquisition with $13.5 billion of new bonds will materially increase Aon’s debt burden and interest expense. Investors may remain cautious until the company demonstrates that USI’s earnings and expected synergies justify the higher financing costs. Aon Raises $13.5 Billion From Bond Sale to Fund USI Takeover

About AON

Aon plc is a global professional services firm that helps organizations manage risk, support workforce strategies and make informed decisions. Its principal activities include commercial risk brokerage, insurance and reinsurance consulting, retirement and investment advisory services, health and benefits consulting, and data- and analytics-based business solutions.

Aon serves businesses, governments, institutional investors and individuals across a broad range of industries and geographies.