Arthur J. Gallagher priced 19 million shares at $43.25. The firm sold approximately $821.8 million in shares to fund its $950 million acquisition of the insurance brokerage operation of Perth, Australia-based Wesfarmers. This is Gallagher's largest acquisition to date.
The stock was up 0.21% to $43.75 at 9:43 a.m. Nearly 3.5 million shares had changed hands, well above the average volume of 731,318.
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Separately, TheStreet Ratings team rates ARTHUR J GALLAGHER & CO as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARTHUR J GALLAGHER & CO (AJG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, increase in stock price during the past year, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."