AON (NYSE:AON) Stock Price Target Cut by Keefe, Bruyette & Woods

AON (NYSE:AON) had its target price decreased by Keefe, Bruyette & Woods from $417.00 to $342.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage currently has an “outperform” rating on the financial services provider’s stock. Keefe, Bruyette & Woods’ target price would indicate a potential upside of 24.44% from the stock’s previous close.

Other equities analysts have also recently issued research reports about the company. Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of AON in a research note on Tuesday, September 1st. Morgan Stanley decreased their target price on shares of AON from $410.00 to $350.00 and set an “overweight” rating for the company in a report on Tuesday, October 6th. Bank of America lifted their target price on shares of AON from $298.00 to $327.00 and gave the stock an “underperform” rating in a research report on Wednesday, July 15th. UBS Group reissued a “neutral” rating on shares of AON in a research report on Monday, August 31st. Finally, Wolfe Research lowered shares of AON from a “hold” rating to a “strong sell” rating in a report on Friday, September 11th. Twelve research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $367.59.

AON Stock Performance

Shares of NYSE AON opened at $274.82 on Monday. The stock’s fifty day simple moving average is $315.32 and its 200 day simple moving average is $326.86. The stock has a market capitalization of $58.30 billion, a price-to-earnings ratio of 15.11, a PEG ratio of 1.41 and a beta of 0.70. 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 has a 52-week low of $266.33 and a 52-week high of $382.34.

AON (NYSE:AON) last announced its earnings results on Wednesday, July 29th. The financial services provider reported $3.81 EPS for the quarter, beating 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 business had revenue of $4.25 billion during the quarter, compared to the consensus estimate of $4.28 billion. During the same period in the prior year, the business posted $3.49 earnings per share. AON’s revenue was up 2.2% compared to the same quarter last year. As a group, sell-side analysts forecast that AON will post 18.74 earnings per share for the current fiscal year.

Insider Transactions at AON

In other AON news, Director Lester Knight bought 20,000 shares of the stock in a transaction on Wednesday, September 2nd. The shares were bought at an average price of $327.48 per share, with a total value of $6,549,600.00. Following the purchase, the director directly owned 163,000 shares in the company, valued at $53,379,240. The trade was a 13.99% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, General Counsel Darren Zeidel sold 1,900 shares of the company’s stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total value of $717,744.00. Following the completion of the transaction, the general counsel owned 11,504 shares in the company, valued at $4,345,751.04. This represents a 14.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.00% of the company’s stock.

Institutional Investors Weigh In On AON

A number of institutional investors have recently modified their holdings of AON. Arrowstreet Capital Limited Partnership raised its holdings in AON by 74.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 797,418 shares of the financial services provider’s stock worth $257,391,000 after acquiring an additional 340,866 shares during the period. The Manufacturers Life Insurance Company lifted its position in AON by 136.1% during the 1st quarter. The Manufacturers Life Insurance Company now owns 547,850 shares of the financial services provider’s stock worth $176,835,000 after acquiring an additional 315,817 shares during the last quarter. Amundi lifted its position in AON by 23.5% during the 1st quarter. Amundi now owns 1,502,890 shares of the financial services provider’s stock worth $485,103,000 after acquiring an additional 285,549 shares during the last quarter. Bank of America Corp DE boosted its holdings in AON by 16.3% during the first quarter. Bank of America Corp DE now owns 1,582,680 shares of the financial services provider’s stock valued at $510,857,000 after acquiring an additional 222,092 shares during the period. Finally, Dimensional Fund Advisors LP boosted its holdings in AON by 20.5% during the first quarter. Dimensional Fund Advisors LP now owns 1,253,769 shares of the financial services provider’s stock valued at $404,709,000 after acquiring an additional 213,051 shares during the period. Institutional investors and hedge funds own 86.14% of the company’s stock.

More AON News

Here are the key news stories impacting AON this week:

• Positive Sentiment: Aon expanded its Ukraine Recovery and Reconstruction Guarantee Facility with the European Bank for Reconstruction and Development, increasing guarantee capacity from €110 million to €150 million. The program has already supported more than €500 million of reinsurance coverage across nearly 10,000 policies, strengthening Aon’s role in specialty war-risk insurance and Ukraine’s reconstruction market. Aon and the European Bank for Reconstruction and Development expand war risk insurance facility for Ukraine
• Positive Sentiment: Ukrainian insurers UNIVERSALNA and USG joined the facility, broadening its distribution and potential underwriting reach. The development is strategically favorable, though the immediate earnings contribution is likely limited. Vienna Insurance Group: Ukrainian company USG joins Aon and EBRD war risk insurance facility
• Positive Sentiment: Aon declared a quarterly dividend of $0.82 per share, or $3.28 annualized, supporting the stock’s income appeal and signaling continued capital-return capacity.
• Neutral Sentiment: Aon projects Asia-Pacific medical-cost inflation will slow to 9.7% in 2027. Lower cost growth may benefit employer clients, but it could also reduce pricing and premium-growth opportunities for benefits-related business. APAC Medical Cost Growth Projected to Slow to 9.7% in 2027, Aon Report
• Negative Sentiment: Analysts continued to lower their valuation targets: Wells Fargo reduced its target to $323, Evercore cut its target to $375 from $423, and Keefe, Bruyette & Woods lowered its target to $342 from $417. Although the firms remain constructive—KBW retained an “outperform” rating—the cuts reflect reduced expectations and are the clearest immediate pressure on AON.

AON Company Profile

Aon plc is a global professional services firm that helps organizations manage risk, make better decisions and improve performance. Its services are organized around risk capital and human capital, combining advisory expertise, data, analytics and insurance-related solutions.

The company provides commercial risk brokerage and consulting, reinsurance brokerage, retirement and investment advisory services, health benefits consulting, talent and compensation consulting, and related technology and data products.