Wall Street Zen Upgrades AON (NYSE:AON) to “Hold”

AON (NYSE:AON) was upgraded by equities research analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a research note issued on Saturday.

A number of other equities research analysts have also issued reports on the stock. Keefe, Bruyette & Woods boosted their price target on shares of AON from $400.00 to $412.00 and gave the company an “outperform” rating in a report on Tuesday, August 4th. Citigroup raised their price objective on shares of AON from $420.00 to $435.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. Mizuho boosted their target price on shares of AON from $426.00 to $437.00 and gave the company an “outperform” rating in a research note on Monday, August 3rd. Morgan Stanley increased their target price on AON from $380.00 to $410.00 and gave the company an “overweight” rating in a report on Wednesday, August 19th. Finally, Piper Sandler raised their target price on AON from $377.00 to $391.00 and gave the stock a “neutral” rating in a research report on Thursday, July 30th. Twelve research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $412.62.

AON Trading Up 0.2%

NYSE:AON opened at $355.94 on Friday. The stock has a fifty day simple moving average of $353.13 and a 200 day simple moving average of $333.94. The firm has a market capitalization of $75.50 billion, a price-to-earnings ratio of 19.62, a price-to-earnings-growth ratio of 1.83 and a beta of 0.69. AON has a 1-year low of $304.59 and a 1-year 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.

AON (NYSE:AON) last posted its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.80 by $0.01. AON had a return on equity of 42.13% and a net margin of 22.27%.The firm had revenue of $4.25 billion for the quarter, compared to the consensus estimate of $4.28 billion. During the same quarter in the previous year, the company earned $3.49 EPS. The business’s revenue for the quarter was up 2.2% compared to the same quarter last year. Sell-side analysts forecast that AON will post 19.06 earnings per share for the current year.

Insider Buying and Selling

In other AON news, General Counsel Darren Zeidel sold 1,950 shares of the company’s stock in a transaction that occurred on Friday, July 17th. The shares were sold at an average price of $372.05, for a total value of $725,497.50. Following the transaction, the general counsel owned 13,404 shares in the company, valued at approximately $4,986,958.20. This represents a 12.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have sold 4,450 shares of company stock worth $1,659,242 over the last quarter. Insiders own 1.00% of the company’s stock.

Hedge Funds Weigh In On AON

Several institutional investors and hedge funds have recently modified their holdings of AON. Aviva PLC raised its stake in shares of AON by 2.0% in the fourth quarter. Aviva PLC now owns 333,454 shares of the financial services provider’s stock valued at $117,669,000 after purchasing an additional 6,622 shares in the last quarter. Handelsbanken Fonder AB lifted its stake in AON by 9.1% during the fourth quarter. Handelsbanken Fonder AB now owns 67,034 shares of the financial services provider’s stock worth $23,655,000 after purchasing an additional 5,585 shares during the period. Northwestern Mutual Wealth Management Co. boosted its holdings in AON by 1,864.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 343,754 shares of the financial services provider’s stock valued at $121,304,000 after purchasing an additional 326,256 shares in the last quarter. The Manufacturers Life Insurance Company grew its stake in shares of AON by 136.1% in the 1st 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 during the period. Finally, Highland Capital Management LLC acquired a new position in shares of AON in the 4th quarter worth approximately $1,359,000. 86.14% of the stock is currently owned by hedge funds and other institutional investors.

AON News Roundup

Here are the key news stories impacting AON this week:

• Positive Sentiment: Potentially transformative acquisition: Buying USI would expand Aon’s insurance-brokerage operations and could increase its scale, client reach and growth opportunities in the U.S. commercial insurance market. The agreement could reportedly be announced as soon as Monday. Reuters report on Aon and USI
• Positive Sentiment: Strategic fit and possible synergies: USI has been owned by private-equity firm KKR since 2017. Integrating its brokerage platform with Aon’s existing business could provide cost efficiencies and strengthen Aon’s competitive position, though the financial benefits have not been disclosed. Wall Street Journal report on Aon and USI
• Neutral Sentiment: Reinsurance market backdrop remains supportive: Aon said insurance-linked securities capital has grown to $144.5 billion, suggesting continued investor capacity in reinsurance markets. The report provides industry context but is unlikely to materially affect AON’s near-term valuation. Artemis report on insurance-linked securities capital
• Negative Sentiment: Large transaction and execution risk: A $17 billion purchase, particularly with assumed debt, could pressure Aon’s balance sheet and require substantial financing. Investors will likely scrutinize leverage, purchase valuation, funding terms, regulatory approval and integration risks once definitive terms are released.
• Neutral Sentiment: Analyst signal is cautious: Wall Street Zen upgraded AON to “Hold,” which may temper enthusiasm while investors await confirmation of the USI transaction and evidence that it can deliver attractive returns. Wall Street Zen rating report

About AON

Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.

In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.