On Monday, Arthur J. Gallagher & Co. (NYSE: AJG) shares price traded between $65.96 and $66.83 during the last trading session downbeat with -0.54% at $66.38. The shares recorded trading volume 959,980 shares as compared to its average volume of 956,979 shares. The company has 182.27M shares outstanding and market value of 12.099B. Over the one year trading period, the stock has a peak price of $72.77 and its down is recorded at $56.20.
Arthur J. Gallagher & Co. (AJG) recently stated its financial results for the quarter ended March 31, 2018. Management will host a webcast conference call to discuss these results on Tuesday, May 1, 2018 at 5:15 p.m. ET/4:15 p.m. CT. To listen to the call, and for printer-friendly formats of this release and the “Supplemental Quarterly Data” and “CFO Commentary,” which may also be referenced during the call, please visit ajg.com/IR. These documents contain both GAAP and non-GAAP measures. Investors and other users of this information should read carefully the section entitled “Information Regarding Non-GAAP Measures” starting on page 8. A new revenue recognition accounting standard was adopted as of January 1, 2018, using the full retrospective method to restate each previous reporting period presented.
Interest and banking costs and debt – At March 31, 2018, Gallagher had $2,798.0M of borrowings from private placements, $360.0M of short-term borrowings under its line of credit facility and $121.0M outstanding under a revolving loan facility that provides funding for premium finance receivables, which are fully collateralized by the underlying premiums held by insurance carriers, and as such are excluded from our debt covenant computations.
Clean energy – Consists of the operating results related to our investments in 34 clean coal production plants and royalty income from clean coal licenses related to Chem-Mod LLC. Additional information regarding these results is accessible in the “CFO Commentary” at ajg.com/IR.
Acquisition costs – Consists mostly of external professional fees and other due diligence costs related to acquisitions.
Corporate – Consists of overhead allocations mostly related to corporate staff compensation and other corporate level activities.
Litigation Settlement – During the third quarter of 2015, Gallagher settled litigation against certain former U.K. executives and their advisors for a pretax gain of $31.0M ($22.3M net of costs and taxes). Incremental expenses that arose in connection with this matter resulted in quarterly after-tax charges being incurred through June 30, 2017. No such charges were incurred in this section in the first quarter of 2018.
Home Office Lease Termination/Move – During first quarter 2017, Gallagher relocated its corporate office headquarters to a nearby suburb of Chicago. No such charges were incurred in this section in the first quarter of 2018.
Impact of U.S. Tax Reform – In the fourth quarter of 2017, new tax legislation was enacted in the U.S., which among other changes lowered the U.S. corporate tax rate from 35% to 21% effective January 1, 2018. The ultimate impact of the new tax legislation will likely differ from our estimates made in fourth quarter of 2017,Because of, among other things, changes in interpretations and assumptions Gallagher has made or additional regulatory or accounting guidance that may be issued with respect to the new tax legislation.
Gallagher allocates the provision for income taxes to its Brokerage and Risk Management sections using the local country statutory rates. Gallagher’s consolidated effective tax rate for the quarters ended March 31, 2018 and 2017 was (18.0)% and (21.2)%, respectively, which was lower than the statutory rate Because of the amount of IRC Section 45 tax credits earned and the impact of the income tax benefit of stock compensation in the first quarter of 2018.
The average true range of (AJG) is recorded at 0.91 and the relative strength index of the stock stands 45.21. The stock price is going above to its 52 week low with 18.11% and lagging behind from its 52 week high with -8.78%