Morningstar (NASDAQ:MORN) Stock Price Expected to Rise, BMO Capital Markets Analyst Says

Key Points

• BMO Capital Markets raised Morningstar’s price target from $230 to $237 and maintained an “outperform” rating, implying 15.64% upside from the stock’s $204.94 price.
• Morningstar reported quarterly EPS of $3.10, exceeding the $2.83 consensus estimate, while revenue of $663.2 million also surpassed expectations.
• Analyst sentiment remains favorable, with the stock carrying a “Moderate Buy” consensus rating and an average target price of $235.67; however, insiders sold 86,500 shares in the latest quarter.

Morningstar (NASDAQ:MORN - Get Free Report) had its price target upped by equities research analysts at BMO Capital Markets from $230.00 to $237.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The firm presently has an "outperform" rating on the business services provider's stock. BMO Capital Markets' price objective indicates a potential upside of 15.64% from the stock's current price.

MORN has been the topic of several other reports. Weiss Ratings raised Morningstar from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday. Wall Street Zen raised Morningstar from a "hold" rating to a "buy" rating in a research note on Saturday, September 26th. Rothschild & Co Redburn set a $210.00 target price on Morningstar in a research report on Thursday, June 18th. Finally, UBS Group dropped their price target on shares of Morningstar from $280.00 to $260.00 and set a "buy" rating on the stock in a research note on Tuesday, July 7th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, Morningstar presently has an average rating of "Moderate Buy" and a consensus target price of $235.67.

Morningstar Stock Performance

MORN traded up $0.65 on Tuesday, reaching $204.94. The stock had a trading volume of 49,189 shares, compared to its average volume of 469,681. The business's 50-day moving average price is $202.94 and its two-hundred day moving average price is $183.75. The company has a market cap of $7.69 billion, a P/E ratio of 19.43 and a beta of 1.02. Morningstar has a 12-month low of $141.49 and a 12-month high of $227.51. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 1.66.

Morningstar (NASDAQ:MORN - Get Free Report) last posted its earnings results on Wednesday, July 29th. The business services provider reported $3.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.83 by $0.27. Morningstar had a net margin of 16.43% and a return on equity of 38.57%. The business had revenue of $663.20 million for the quarter, compared to analyst estimates of $649.72 million.

Insider Buying and Selling at Morningstar

In other news, Chairman Joseph Mansueto sold 7,906 shares of Morningstar stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $210.26, for a total value of $1,662,315.56. Following the sale, the chairman directly owned 7,960,570 shares of the company's stock, valued at $1,673,789,448.20. The trade was a 0.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 86,500 shares of company stock valued at $17,824,451 in the last quarter. Company insiders own 38.80% of the company's stock.

Institutional Investors Weigh In On Morningstar

A number of hedge funds have recently modified their holdings of MORN. Grove Bank & Trust acquired a new position in Morningstar in the 2nd quarter valued at about $25,000. Cassaday & Co Wealth Management LLC acquired a new stake in shares of Morningstar during the 1st quarter worth approximately $26,000. Global Retirement Partners LLC acquired a new stake in shares of Morningstar during the 2nd quarter worth approximately $49,000. IFP Advisors Inc increased its holdings in shares of Morningstar by 45.2% during the 2nd quarter. IFP Advisors Inc now owns 315 shares of the business services provider's stock worth $49,000 after buying an additional 98 shares during the last quarter. Finally, Globeflex Capital L P purchased a new stake in shares of Morningstar during the 2nd quarter valued at approximately $122,000. 57.02% of the stock is currently owned by institutional investors and hedge funds.

Morningstar Company Profile

Morningstar, Inc is a global provider of independent investment research, data, and analytical services. The company serves individual investors, financial advisors, asset managers, institutions, and retirement plan providers through information and tools designed to support investment research, portfolio construction, wealth management, and financial planning.

Its offerings include ratings and research on mutual funds, exchange-traded funds, stocks, bonds, and other investments; portfolio management and investment research platforms such as Morningstar Direct and Morningstar Advisor Workstation; and data, analytics, and software for asset managers and financial institutions.

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