21,153 Shares in Morningstar, Inc. $MORN Acquired by Waverly Advisors LLC

Key Points

• Waverly Advisors acquired 21,153 Morningstar shares worth approximately $3.6 million, while institutional investors collectively owned 57.02% of the company at the latest reporting period.
• Morningstar reported a strong second quarter, with adjusted earnings of $3.10 per share and revenue of $663.2 million, beating analyst estimates; operating income, net income and cash flow also increased substantially.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and average price target of $227.33, although insider selling and the company’s $1.7 billion debt load remain potential concerns.

Waverly Advisors LLC purchased a new position in Morningstar, Inc. (NASDAQ:MORN - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 21,153 shares of the business services provider's stock, valued at approximately $3,576,000. Waverly Advisors LLC owned 0.06% of Morningstar at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in MORN. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Morningstar by 23.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 178 shares of the business services provider's stock worth $53,000 after buying an additional 34 shares in the last quarter. WPG Advisers LLC grew its stake in shares of Morningstar by 36.0% in the fourth quarter. WPG Advisers LLC now owns 185 shares of the business services provider's stock worth $40,000 after acquiring an additional 49 shares during the last quarter. Verdence Capital Advisors LLC grew its position in Morningstar by 3.9% during the 4th quarter. Verdence Capital Advisors LLC now owns 1,423 shares of the business services provider's stock valued at $309,000 after purchasing an additional 54 shares during the last quarter. Quarry LP grew its position in Morningstar by 51.2% during the 4th quarter. Quarry LP now owns 189 shares of the business services provider's stock valued at $41,000 after purchasing an additional 64 shares during the last quarter. Finally, Diversify Advisory Services LLC increased its stake in Morningstar by 4.7% during the 3rd quarter. Diversify Advisory Services LLC now owns 1,641 shares of the business services provider's stock valued at $350,000 after purchasing an additional 74 shares in the last quarter. Hedge funds and other institutional investors own 57.02% of the company's stock.

Insider Activity at Morningstar

In other Morningstar news, Chairman Joseph D. Mansueto sold 2,270 shares of the stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $176.72, for a total value of $401,154.40. Following the transaction, the chairman owned 8,043,492 shares of the company's stock, valued at approximately $1,421,445,906.24. This represents a 0.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William M. Lyons sold 700 shares of the business's stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $179.00, for a total value of $125,300.00. Following the sale, the director owned 13,904 shares of the company's stock, valued at approximately $2,488,816. This represents a 4.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 64,720 shares of company stock worth $11,169,471. 38.80% of the stock is owned by insiders.

Morningstar News Roundup

Here are the key news stories impacting Morningstar this week:

• Positive Sentiment: Q2 earnings and revenue beat expectations. Adjusted earnings rose to $3.10 per share, exceeding the $2.83 analyst consensus, while revenue increased 9.6% year over year to $663.2 million versus expectations of approximately $649.7 million. Morningstar Q2 Adjusted Earnings, Revenue Rise
• Positive Sentiment: Profitability and cash flow improved substantially. Operating income climbed 28.4% to $160.6 million, net income increased to $107.8 million from $89.0 million a year earlier, and operating cash flow jumped 57.3% to $155.7 million. Organic revenue growth was 6.8%. Morningstar Q2 Revenue Rises 9.6% to $663.2 Million
• Positive Sentiment: Growth was broad-based. Management cited Morningstar Credit, the Morningstar Direct Platform and PitchBook as leading contributors to revenue growth, supporting investor confidence in the company’s operating momentum. Morningstar Reports Strong Q2 2026 Financial Performance
• Positive Sentiment: Share repurchases provided additional support. Morningstar repurchased 567,844 shares for $100 million during the quarter, potentially improving per-share results and signaling management’s confidence in the stock’s value.
• Neutral Sentiment: Balance-sheet considerations remain important. Morningstar held $523.8 million in cash, cash equivalents and investments against $1.7 billion of debt. The company’s debt load could limit financial flexibility despite stronger cash generation.
• Negative Sentiment: Insider selling may temper enthusiasm. Insiders recorded 137 sales and just one purchase over the past six months, including substantial sales by Executive Chairman Joseph Mansueto. These transactions may raise caution, although they do not necessarily reflect the company’s operating outlook.

Morningstar Trading Up 2.3%

Shares of MORN stock opened at $198.66 on Thursday. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 1.66. Morningstar, Inc. has a 12-month low of $141.49 and a 12-month high of $289.63. The stock has a market capitalization of $7.56 billion, a P/E ratio of 20.23 and a beta of 1.01. The firm's 50 day moving average is $171.61 and its 200 day moving average is $177.40.

Morningstar (NASDAQ:MORN - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The business services provider reported $3.10 earnings per share for the quarter, beating the consensus estimate of $2.83 by $0.27. The firm had revenue of $663.20 million for the quarter, compared to analysts' expectations of $649.72 million. Morningstar had a return on equity of 33.14% and a net margin of 16.06%.

Analysts Set New Price Targets

Several research analysts have recently issued reports on MORN shares. Rothschild & Co Redburn set a $210.00 target price on shares of Morningstar in a research note on Thursday, June 18th. Wall Street Zen raised shares of Morningstar from a "hold" rating to a "buy" rating in a research report on Sunday, June 21st. UBS Group lowered their price objective on Morningstar from $280.00 to $260.00 and set a "buy" rating on the stock in a research report on Tuesday, July 7th. BMO Capital Markets reiterated an "outperform" rating and set a $212.00 target price on shares of Morningstar in a research note on Friday, June 26th. Finally, Weiss Ratings raised Morningstar from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, July 15th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $227.33.

About Morningstar

Morningstar, Inc is a leading provider of independent investment research, data, and analytics, serving both individual investors and financial professionals. The company offers comprehensive coverage of financial products, including mutual funds, exchange-traded funds (ETFs), stocks, bonds and market indexes. Morningstar's proprietary rating systems and research methodologies help clients assess the risk and return profiles of investment opportunities and make informed decisions.

Its core products include Morningstar Direct, an institutional investment analysis platform; Morningstar Office Cloud, a portfolio management solution for advisors; and Morningstar Data, which delivers extensive datasets through APIs and data feeds.

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