CFO Douglas Howell Buys 1.5% of Arthur J. Gallagher Amid Market Dip—Insider Confidence Signals Undervalued Stock

Insider Activity Highlights Arthur J. Gallagher & Co.

The latest director‑dealing filing shows VP & Chief Financial Officer Douglas Howell purchasing 12,892.21 notional stock units on February 10, 2026, at a share price of $204.79. The trade came amid a broader sector sell‑off that pushed the stock below its 52‑week low, yet the CFO’s transaction suggests confidence that the company’s long‑term fundamentals will remain intact. A buy of this magnitude—equivalent to roughly 1.5 % of the company’s outstanding shares—signals management’s belief that the current valuation reflects an attractive entry point, particularly given the 37.3 price‑earnings ratio and the company’s robust cash‑generating insurance brokerage model.

What the Purchase Means for Investors

For shareholders, the CFO’s activity is a positive signal. Executive purchases are often interpreted as insider conviction that the market is undervaluing the firm, especially when they occur during a market trough. Howell’s buy sits against a backdrop of declining stock prices: the daily close fell 15.6 % on February 11, and the year‑to‑date decline is 36.3 %. If the sector stabilizes, the CFO’s stake could act as a catalyst for a rebound, reinforcing investor confidence in Gallagher’s risk‑management expertise and its diversified revenue streams. Conversely, the transaction could also be viewed skeptically if the stock fails to recover, but the sizable purchase size and the fact that it was executed at a flat price change (0.00 %) mitigate concerns of a speculative move.

Douglas Howell: A Track Record of Steady Engagement

Howell’s insider history shows a pattern of disciplined, long‑term participation. Since 2025 he has repeatedly sold blocks of common stock—often between 2,100 and 5,900 shares—while maintaining a large pool of notional stock units (up to 208,342.08 units) and non‑qualified stock options (the largest balance being 31,265 units in 2028). His activity is consistent with a typical executive strategy: periodic liquidity events that align with personal financial planning while preserving substantial equity exposure. Notably, Howell has not engaged in any large sales of common stock in 2026, and his current purchase of notional units further solidifies his long‑term commitment to the company’s upside.

Implications for Gallagher’s Future

The CFO’s recent buy aligns with the company’s broader strategy to strengthen its capital position amid a volatile insurance market. Gallagher’s core insurance brokerage and risk‑management services remain resilient, yet the firm faces potential disruption from emerging AI tools that could automate underwriting and claims processing. By increasing insider ownership, the company signals to the market that its leadership believes the firm is well‑positioned to navigate such changes. For investors, this insider confidence can temper the short‑term volatility seen in the last quarter and reinforce the narrative that the current price represents a buying opportunity.

Bottom Line for Investors

• Positive Insider Signal: CFO buy during a market dip suggests confidence in long‑term value.
• Sustained Commitment: Howell’s history shows disciplined, long‑term equity retention.
• Strategic Context: Strengthening ownership amid sector‑wide AI disruption and market volatility.
• Investment Takeaway: Consider Gallagher as a defensive play with potential upside once the sector normalizes, while monitoring the company’s ability to innovate against emerging technology threats.