Wells Fargo & Company Has Lowered Expectations for Marsh & McLennan Companies (NYSE:MRSH) Stock Price

Key Points

• Wells Fargo lowered Marsh & McLennan’s price target from $188 to $183 and maintained an “equal weight” rating, implying about 3.86% upside from the stock’s reported $176.19 price.
• Analyst sentiment remains mixed but leans neutral: MarketBeat reports a consensus “Hold” rating and an average price target of $206.15, with recent target changes ranging from UBS’s $222 bullish target to BMO’s $179 target.
• Marsh & McLennan reported quarterly earnings of $2.96 per share, beating estimates of $2.89, while revenue rose 6.2% year over year to $7.28 billion. Institutional investors own approximately 87.99% of the company, while insiders sold about $3.6 million of shares over the past 90 days.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) had its price target lowered by Wells Fargo & Company from $188.00 to $183.00 in a research note issued to investors on Monday, Benzinga reports. The brokerage currently has an "equal weight" rating on the financial services provider's stock. Wells Fargo & Company's target price would indicate a potential upside of 3.86% from the stock's current price.

MRSH has been the subject of a number of other reports. Mizuho lowered their price target on shares of Marsh & McLennan Companies from $201.00 to $190.00 and set a "neutral" rating for the company in a report on Wednesday, October 7th. Weiss Ratings raised shares of Marsh & McLennan Companies from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, August 7th. UBS Group raised their target price on shares of Marsh & McLennan Companies from $216.00 to $222.00 and gave the stock a "buy" rating in a research report on Tuesday, October 6th. BMO Capital Markets decreased their target price on shares of Marsh & McLennan Companies from $203.00 to $179.00 and set a "market perform" rating on the stock in a research report on Thursday, October 1st. Finally, Bank of America lowered their target price on shares of Marsh & McLennan Companies from $179.00 to $178.00 and set an "underperform" rating for the company in a research note on Wednesday, July 15th. Two research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Marsh & McLennan Companies has a consensus rating of "Hold" and a consensus price target of $206.15.

Marsh & McLennan Companies Stock Performance

Marsh & McLennan Companies stock traded up $0.43 during midday trading on Monday, reaching $176.19. 567,960 shares of the company were exchanged, compared to its average volume of 2,801,133. The company's 50-day moving average is $182.24. Marsh & McLennan Companies has a 1 year low of $156.60 and a 1 year high of $207.28. The firm has a market capitalization of $84.08 billion, a P/E ratio of 21.57, a price-to-earnings-growth ratio of 2.43 and a beta of 0.59. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.22.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) last announced its earnings results on Tuesday, July 21st. The financial services provider reported $2.96 earnings per share for the quarter, beating the consensus estimate of $2.89 by $0.07. The firm had revenue of $7.28 billion during the quarter. Marsh & McLennan Companies had a net margin of 14.24% and a return on equity of 32.67%. Marsh & McLennan Companies's revenue for the quarter was up 6.2% on a year-over-year basis. On average, analysts forecast that Marsh & McLennan Companies will post 10.43 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Paul Beswick sold 713 shares of Marsh & McLennan Companies stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $198.00, for a total transaction of $141,174.00. Following the transaction, the senior vice president owned 16,376 shares in the company, valued at approximately $3,242,448. The trade was a 4.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Martin South sold 7,100 shares of the company's stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $189.99, for a total transaction of $1,348,929.00. Following the sale, the insider directly owned 16,632 shares of the company's stock, valued at approximately $3,159,913.68. This trade represents a 29.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 19,813 shares of company stock worth $3,597,903 over the last ninety days. 0.38% of the stock is owned by company insiders.

Institutional Trading of Marsh & McLennan Companies

Large investors have recently bought and sold shares of the company. Focus Partners Advisor Solutions LLC purchased a new stake in Marsh & McLennan Companies during the 2nd quarter worth approximately $2,153,000. Daiichi Life Insurance Co. Ltd. bought a new position in Marsh & McLennan Companies during the 2nd quarter valued at $3,880,000. Korea Investment CORP acquired a new position in Marsh & McLennan Companies during the 2nd quarter worth $46,856,000. Bank of Nova Scotia acquired a new position in Marsh & McLennan Companies during the 2nd quarter worth $20,681,000. Finally, Essex LLC bought a new stake in shares of Marsh & McLennan Companies in the 1st quarter worth about $2,891,000. Institutional investors and hedge funds own 87.99% of the company's stock.

About Marsh & McLennan Companies

Marsh & McLennan Companies, now operating under the name Marsh McLennan, is a global professional services firm that provides advice and solutions in risk, strategy and people. The company serves businesses, governments and institutions through four principal businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman.

Marsh is an insurance brokerage and risk adviser that helps clients identify, manage and transfer risk. Guy Carpenter provides reinsurance brokerage and advisory services to insurance companies.

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