Rolling Meadows, Illinois-based Arthur J. Gallagher & Co. (AJG) provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals. With a market cap of $63.6 billion, the company operates through Brokerage and Risk Management segments.
Companies worth $10 billion or more are generally referred to as “large-cap stocks.” AJG fits right into that category, with its market cap exceeding the threshold, reflecting its substantial size, influence, and dominance in the insurance industry.
Despite its notable strengths, AJG stock has declined 29.9% from its all-time high of $351.23 touched on Jun. 3. Meanwhile, its stock prices have dropped 18.7% over the past three months, underperforming the S&P 500 Index’s ($SPX) 5.5% uptick during the same time frame.
AJG has also underperformed the broader market over the longer term. Its stock prices have plunged 13.3% on a YTD basis and 21.2% over the past 52 weeks, compared to SPX’s 15.8% gains in 2025 and 12.9% returns over the past year.
AJG stock has traded below its 50-day moving average since early June and below its 200-day moving average since late July, underscoring its bearish trend.
Arthur J. Gallagher’s stock prices declined 4.8% in the trading session following the release of its Q3 results on Oct. 30. The company observed a notable surge in commissions, fees, and other revenues. Its overall topline for the quarter soared 22% year-over-year to $2.9 billion, but missed the Street’s expectations by a notable margin. Meanwhile, its adjusted EPS inched up by a modest 2.7% year-over-year to $2.32 and fell 7.6% below the consensus estimates, making investors jittery.
Meanwhile, AJG has also underperformed its peer Willis Towers Watson Public Limited Company’s (WTW) 2.4% gains in 2025 and a marginal 38 bps dip over the past year.
Among the 22 analysts covering the AJG stock, the consensus rating is a “Moderate Buy.” Its mean price target of $313.06 suggests a 27.2% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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