Aon plc (NYSE: AON) stock fell -3.46% on Tuesday to $314.40 against a previous-day closing price of $325.67. With 0.89 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.88 million shares. During the session, the Insurance Brokers company that operates in wider Financial sector, reached to the highest price of $324.12 whereas the lowest price it dropped to was $313.02. The 52-week range on AON shows that it touched its highest point at $338.27 and its lowest point at $246.21 during that stretch. It currently has a 1-year price target of $334.93. With its current market cap of 63.65 billion, AON has annualized dividend of $2.46 while the current yield stands at 0.78%. Beta for the stock currently stands at 0.89.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AON was down-trending over the past week, with a drop of -5.00%, but this was down by -5.18% over a month. Three-month performance surged to 3.13% while six-month performance rose 4.34%. The stock gained 19.68% in the past year, while it has gained 4.75% so far this year. A look at the trailing 12-month EPS for AON yields 12.47 with Next year EPS estimates of 16.19. For the next quarter, that number is 2.85. This implies an EPS growth rate of 118.80% for this year and 12.68% for next year. EPS is expected to grow by 10.81% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 33.60%.
Float and Shares Shorts:
At present, 206.10 million AON shares are outstanding with a float of 189.53 million shares on hand for trading. On Apr 27, 2023, short shares totaled 2.18 million, which was 1.07% higher than short shares on Mar 30, 2023. In addition to Mr. Gregory Clarence Case as the firm’s CEO & Exec. Director, Mr. Eric Andersen serves as its Pres.
Through their ownership of 88.36% of AON’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.22% of AON, in contrast to 38.17% held by mutual funds. Shares owned by individuals account for 1.22%. As the largest shareholder in AON with 8.36% of the stake, The Vanguard Group, Inc. holds 17,142,084 shares worth 17,142,084. A second-largest stockholder of AON, Massachusetts Financial Services, holds 15,526,841 shares, controlling over 7.57% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in AON, holding 9,889,339 shares or 4.82% stake. With a 2.94% stake in AON, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 6,031,606 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.34% of AON stock, is the second-largest Mutual Fund holder. It holds 4,795,504 shares valued at 1.56 billion. MFS Value Fund holds 2.25% of the stake in AON, owning 4,606,138 shares worth 1.5 billion.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, AON reported revenue of $2.98B and operating income of $700.00M. The EBITDA in the recently reported quarter was $770.00M and diluted EPS was $2.33.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AON since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With AON analysts setting a high price target of $363.00 and a low target of $296.00, the average target price over the next 12 months is $334.50. Based on these targets, AON could surge 15.46% to reach the target high and fall by -5.85% to reach the target low. Reaching the average price target will result in a growth of 6.39% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded AON stock several times over the past three months with 2 Buys and 2 Sells. In these transactions, 225 shares were bought while 79 shares were sold. The number of buy transactions has increased to 48 while that of sell transactions has risen to 51 over the past year. The total number of shares bought during that period was 544,705 while 408,233 shares were sold.