Bank of America Has Lowered Expectations for Marsh & McLennan Companies (NYSE:MRSH) Stock Price

Key Points

• Bank of America cut its price target on Marsh & McLennan to $174 from $181 and maintained an underperform rating, implying only about a 0.72% upside from the prior close.
• Analyst consensus is a Hold with a $205.13 average target, though opinions vary across firms (1 Strong Buy, 5 Buy, 10 Hold, 1 Sell).
• Despite analyst downgrades, Marsh & McLennan recently beat quarterly EPS ($2.12 vs. $1.97) and revenue rose 8.7% year‑over‑year; the stock trades at $172.75, near its 50‑day moving average and well below its 12‑month high of $238.12.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) had its price objective decreased by stock analysts at Bank of America from $181.00 to $174.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm currently has an "underperform" rating on the financial services provider's stock. Bank of America's target price would suggest a potential upside of 0.72% from the stock's previous close.

Other research analysts have also recently issued reports about the company. JPMorgan Chase & Co. lowered their price target on Marsh & McLennan Companies from $226.00 to $206.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Keefe, Bruyette & Woods lowered their price target on Marsh & McLennan Companies from $206.00 to $200.00 and set a "market perform" rating on the stock in a report on Tuesday, April 7th. Cantor Fitzgerald boosted their price target on Marsh & McLennan Companies from $208.00 to $212.00 and gave the stock an "overweight" rating in a report on Monday, February 2nd. Weiss Ratings assumed coverage on Marsh & McLennan Companies in a report on Thursday, January 29th. They issued a "hold (c)" rating on the stock. Finally, Evercore lowered their price target on Marsh & McLennan Companies from $237.00 to $236.00 and set an "outperform" rating on the stock in a report on Wednesday, January 7th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $205.13.

Marsh & McLennan Companies Price Performance

Shares of MRSH stock traded down $0.80 during trading hours on Tuesday, reaching $172.75. 762,482 shares of the company traded hands, compared to its average volume of 3,042,661. Marsh & McLennan Companies has a 12-month low of $164.89 and a 12-month high of $238.12. The company has a debt-to-equity ratio of 1.20, a quick ratio of 1.10 and a current ratio of 1.10. The stock has a market cap of $83.63 billion, a P/E ratio of 20.49, a P/E/G ratio of 2.29 and a beta of 0.75. The stock's 50-day moving average price is $173.02.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) last posted its quarterly earnings results on Thursday, January 29th. The financial services provider reported $2.12 EPS for the quarter, topping analysts' consensus estimates of $1.97 by $0.15. Marsh & McLennan Companies had a return on equity of 31.60% and a net margin of 15.42%.The company had revenue of $6.60 billion for the quarter, compared to analysts' expectations of $6.52 billion. During the same period in the previous year, the firm earned $1.87 EPS. The firm's revenue was up 8.7% compared to the same quarter last year. Sell-side analysts predict that Marsh & McLennan Companies will post 9.61 EPS for the current year.

Insider Activity

In other news, CEO John Q. Doyle sold 16,655 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $183.30, for a total transaction of $3,052,861.50. Following the sale, the chief executive officer directly owned 116,811 shares of the company's stock, valued at $21,411,456.30. This represents a 12.48% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.38% of the stock is owned by company insiders.

Hedge Funds Weigh In On Marsh & McLennan Companies

Large investors have recently modified their holdings of the stock. Pinnacle Bancorp Inc. bought a new position in shares of Marsh & McLennan Companies during the 3rd quarter valued at approximately $25,000. Solstein Capital LLC bought a new position in Marsh & McLennan Companies in the 4th quarter valued at $25,000. SHP Wealth Management bought a new position in Marsh & McLennan Companies in the 4th quarter valued at $26,000. KERR FINANCIAL PLANNING Corp bought a new position in Marsh & McLennan Companies in the 4th quarter valued at $27,000. Finally, Golden State Wealth Management LLC bought a new position in Marsh & McLennan Companies in the 4th quarter valued at $27,000. Institutional investors own 87.99% of the company's stock.

Marsh & McLennan Companies Company Profile

Marsh & McLennan Companies NYSE: MMC is a global professional services firm headquartered in New York City that provides advice and solutions in the areas of risk, strategy and people. Founded in 1905, the company has grown into a diversified group of businesses focused on insurance brokerage and risk management, reinsurance, human capital and investment consulting, and management consulting. Its long history and scale position it as a prominent adviser to corporations, governments and other institutions seeking to manage risk and optimize human and financial capital.

The firm operates through several well-known subsidiaries and business units that specialize in distinct services.

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