Top 12 Stocks to Buy According to Citadel Investment Group

8. Arthur J. Gallagher & Co. (NYSE:AJG)

Number of Hedge Fund Holders as of Q4: 77

Citadel Investment Group’s Equity Stake: $682.74 Million 

An American insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois, Arthur J. Gallagher & Co. (NYSE:AJG) was established in 1927. With over 56,000 employees and providing services in more than 130 countries, it is one of the largest insurance brokers in the world.

Arthur J. Gallagher & Co. (NYSE:AJG) reported total revenue of $2.68 billion for Q4 2024, falling slightly short of analysts’ expectations of $2.69 billion. However, the company’s adjusted net earnings surged to $491.2 million, a notable increase from $402.4 million in the same period the previous year. Adjusted earnings per share (EPS) reached $2.13, significantly surpassing the projected $1.35. This strong financial performance highlights the company’s ability to maintain growth despite expenses related to acquisitions and workforce adjustments.

The brokerage segment saw a 12% year-over-year revenue increase, reaching $2.3 billion, underscoring Arthur J. Gallagher & Co. (NYSE:AJG)’s expanding market presence and service capabilities. The risk management division also demonstrated steady growth, with revenue climbing to $369.4 million, compared to $340.4 million in Q4 2023.

Arthur J. Gallagher & Co. (NYSE:AJG) continued its aggressive expansion strategy, completing 20 acquisitions in Q4 2024, adding an estimated annualized revenue of $387 million. Notably, its acquisition of AssuredPartners is expected to strengthen its market position further. Chairman and CEO J. Patrick Gallagher, Jr. emphasized the company’s sustained success, marking its 16th consecutive quarter of double-digit revenue growth, with organic revenue increasing by 7%. With a solid balance sheet and a clear focus on expansion, the company remains well-positioned for continued growth in the insurance brokerage industry.

By the end of Q4 2024, Citadel Investment Group significantly boosted its stake in Arthur J. Gallagher & Co. (NYSE:AJG), increasing its holdings to over 2.4 million shares—a substantial jump from 29,786 shares in Q3, representing a 7,976% rise. This investment is now valued at nearly $682.74 million. Data from Insider Monkey shows that 77 out of 1,009 hedge funds held positions in the company by the close of Q4, with total holdings valued at nearly $4.47 billion, up from 44 funds in the previous quarter.