Balentine LLC has decreased its holdings in Aon plc (NYSE: AON) by 12.8%, bringing its total stake to $222,000 at the end of the second quarter of 2023. This reduction follows the sale of 91 shares, leaving the firm with 622 shares of the financial services provider’s stock, according to its recent Form 13F filing with the Securities and Exchange Commission.
Aon plc, a prominent player in risk, health, and wealth solutions, has attracted attention from various institutional investors in recent months. Notably, Polen Capital Management LLC significantly increased its investment in Aon during the first quarter, boosting its stake by an impressive 318.1%. Following this acquisition, Polen now owns 3,007,719 shares valued at approximately $1.2 billion after purchasing an additional 2,288,397 shares.
Nuveen LLC and Wellington Management Group LLP also made substantial investments in Aon during the same period. Nuveen acquired a new stake valued at $505,108,000, while Wellington’s new investment amounted to $490,634,000. Additionally, Bank of New York Mellon Corp increased its holdings by 18.3%, now owning 3,034,062 shares worth about $1.21 billion after acquiring another 469,238 shares. Vontobel Holding Ltd. similarly expanded its stake by 276.0% in the second quarter, now holding 460,971 shares valued at $164,456,000. Institutional investors and hedge funds collectively own approximately 86.14% of Aon’s stock.
Analyst Ratings and Stock Performance
Several research analysts have recently updated their ratings for Aon. Wolfe Research initiated coverage on Aon, issuing a “peer perform” rating. Meanwhile, JPMorgan Chase & Co. adjusted its price target from $436.00 to $433.00 while maintaining an “overweight” rating. Piper Sandler raised its price objective from $393.00 to $413.00, also assigning an “overweight” rating. In contrast, Wells Fargo & Company lowered its target price from $451.00 to $448.00, retaining an “overweight” stance. Citigroup began coverage with a “neutral” rating and a target price of $402.00. Overall, one analyst has issued a Strong Buy rating, eleven have rated it as Buy, and five have given it a Hold rating. According to MarketBeat.com, Aon currently has a consensus rating of “Moderate Buy” and an average target price of $420.00.
As of October 31, 2023, Aon’s stock opened at $340.75. The company possesses a quick ratio of 1.52 and a current ratio of 1.52, alongside a debt-to-equity ratio of 1.93. Aon’s market capitalization stands at $73.48 billion, with a price-to-earnings ratio of 28.54 and a PEG ratio of 1.92. The stock has fluctuated between a 12-month low of $323.73 and a high of $412.97.
In its latest earnings report, Aon announced earnings per share of $3.05 for the quarter, surpassing analysts’ estimates of $2.91 by $0.14. The company reported a net margin of 15.54% and a return on equity of 50.91%. Revenue for the quarter reached $4 billion, exceeding expectations of $3.97 billion and representing a year-over-year increase of 7.4%.
Aon Declares Quarterly Dividend
In a notable development, Aon has declared a quarterly dividend of $0.745 per share, set to be paid on November 14, 2023. Investors recorded as of November 3, 2023, will be eligible to receive this dividend, which translates to an annualized total of $2.98 and a yield of 0.9%. The company’s dividend payout ratio stands at 24.96%.
Aon plc continues to play a vital role in the financial services sector, providing innovative solutions in risk management, health, and wealth. With a solid performance and strategic investments from institutional players, Aon remains a key entity in the global market.
