Trading Options with an Edge
Select Page

Member Content

Financial Draws Large Insider Buy As Near-Term Outlook Improves

by | Aug 9, 2021

Aon (AON) forming a tight bull flag above its 8-EMA and sizable insider buy last week from director Lester Knight of $2.6M in stock at $263.96. This is the first open market buy since November 2020. AON is looking to clear $267.50 to new highs and above a big volume node from May with a short-term target of $275 but longer-term measures to $310.  The $59.25B company trades 20.4X earnings, 5X sales, and 26.5X FCF. AON is a UK-based provider of financial risk-mitigation products such as insurance, pension administration and employer health insurance plans. The recent stock move comes after the termination of their Willis Towers Watson (WLTW) deal. AON saw the DOJ requests as stifling growth and making progress towards their long-term financial goals more difficult. They note:

“The events of the past 16 months have honed the power of Aon United and our ability to work together to deliver new sources of value to clients. Over this time, we crystallized our operating model and cemented our one firm mindset. We’ve uncovered countless new growth, investment and efficiency opportunities. And at this point, we’re better connected across our firm with all the value of this work and none of integration distractions. We’re moving forward with a proven platform and are operating from a position of strength and momentum.”

Analysts have an average target for shares of $255 and a Street High $306. Wells Fargo raised estimates to $306 last week citing earnings and RBC with a $275 PT as they note the quarter was strong and the absence of the disruption from its terminated merger with WLTW was notable. They also think the business can rebound returning to its Aon United program for efficiencies and growth initiatives.

Not a Member yet?
Subscribe to
OptionsHawk Premium
Subscribe

Options Hawk Max

$300 | 30 days

  • Options Hawk Trading Hub Live Chat
  • Hawk’s Market Blitz
  • Spotlight Trades (2 Per Week)
  • Market Recap
  • Weekly Earnings Snapshots
  • Live Mock Portfolio
  • 1 on 1 Access
  • Hawk’s Trader Toolbox
  • Street Research
  • OptionsHawk Research
  • Daily Options Radar
  • OptionHawk’s Weekly Radar Report
  • Options Hawk Market Outlook Access
  • Daily Earnings Grid
  • Weekly and Monthly OpEx Sheets
  • Notable Options Database
  • OptionsHawk Quarterly Market Brief

More About this Plan

Options Hawk Elite

$149 | 30 days

  • Hawk’s Market Blitz
  • Spotlight Trades (2 Per Week)
  • Market Recap
  • Weekly Earnings Snapshots
  • OptionsHawk Research
  • Daily Options Radar
  • OptionHawk’s Weekly Radar Report
  • Options Hawk Market Outlook Access
  • Daily Earnings Grid
  • OptionsHawk Quarterly Market Brief

More About this Plan