According to Zacks, “Aon’s core business strengthening initiatives, efficient capital deployment, strong cash flow position and cost savings flowing out from its restructuring programs are commendable. Strong merger and acquisition activities, divestitures and restructuring initiatives position the company favorably to generate long-term growth. However, the company remains exposed to heavy debt burden and associated interest expenses that are causing borrowing costs and financial risk to increase. Stiff competition, ongoing legal hassles and foreign currency fluctuations remain major headwinds. Followed by second quarter earnings miss, the company has witnessed a decline in full year 2016 earnings estimates to $6.53 per share from $ 6.57 per share over the past 60 days. Also earnings estimates for full year 2017 have declined to $7.1 per share from $7.32 per share over the same time frame.”
Other analysts have also issued research reports about the company. Langen Mcalenn reaffirmed a buy rating on shares of Aon PLC in a research note on Tuesday, August 2nd. Credit Suisse Group AG reaffirmed a sell rating on shares of Aon PLC in a research note on Monday, August 1st. BMO Capital Markets reaffirmed a market perform rating and set a $115.00 price objective (up previously from $107.00) on shares of Aon PLC in a research note on Tuesday, July 12th. MKM Partners lowered Aon PLC from a buy rating to a neutral rating and set a $115.00 price objective on the stock. in a research note on Tuesday, August 9th. They noted that the move was a valuation call. Finally, Oppenheimer Holdings Inc. reaffirmed a buy rating on shares of Aon PLC in a research note on Tuesday, June 7th. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the company’s stock. The company currently has an average rating of Hold and a consensus price target of $108.73.
Aon PLC (NYSE:AON) opened at 111.62 on Monday. Aon PLC has a 12 month low of $83.83 and a 12 month high of $113.78. The firm has a market cap of $29.65 billion, a PE ratio of 21.02 and a beta of 1.06. The stock’s 50 day moving average is $110.46 and its 200 day moving average is $107.25.
Aon PLC (NYSE:AON) last announced its quarterly earnings results on Friday, July 29th. The company reported $1.39 earnings per share for the quarter, meeting analysts’ consensus estimates of $1.39. Aon PLC had a return on equity of 30.10% and a net margin of 12.65%. The business earned $2.80 billion during the quarter, compared to analysts’ expectations of $2.85 billion. During the same quarter last year, the business posted $1.31 earnings per share. The business’s revenue for the quarter was down 1.4% on a year-over-year basis. On average, equities analysts forecast that Aon PLC will post $6.49 earnings per share for the current year.
In related news, CEO Stephen P. Mcgill sold 46,698 shares of the firm’s stock in a transaction dated Tuesday, August 2nd. The stock was sold at an average price of $108.41, for a total transaction of $5,062,530.18. Following the sale, the chief executive officer now directly owns 252,071 shares in the company, valued at approximately $27,327,017.11. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 1.00% of the company’s stock.
Large investors have recently made changes to their positions in the stock. Massachusetts Financial Services Co. MA increased its stake in shares of Aon PLC by 39.5% in the second quarter. Massachusetts Financial Services Co. MA now owns 13,690,923 shares of the company’s stock valued at $1,495,461,000 after buying an additional 3,874,247 shares during the last quarter. Emerald Acquisition Ltd. bought a new stake in shares of Aon PLC during the second quarter valued at approximately $159,612,000. SPF Beheer BV bought a new stake in shares of Aon PLC during the second quarter valued at approximately $56,241,000. BloombergSen Inc. bought a new stake in shares of Aon PLC during the second quarter valued at approximately $58,537,000. Finally, Artisan Partners Limited Partnership increased its stake in shares of Aon PLC by 2.2% in the second quarter. Artisan Partners Limited Partnership now owns 13,510,473 shares of the company’s stock valued at $1,475,749,000 after buying an additional 288,607 shares during the last quarter. Institutional investors and hedge funds own 84.51% of the company’s stock.
About Aon PLC
Aon plc (Aon) is a global provider of risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing, delivering distinctive client value via risk management and workforce productivity solutions. The Company operates in two segments: Risk Solutions and Human Resource (HR) Solutions.
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