BlackRock Inc. Takes $6.58 Billion Position in Marsh & McLennan Companies, Inc. $MRSH

Key Points

• BlackRock acquired 39.5 million shares of Marsh & McLennan, valued at approximately $6.58 billion, giving it an 8.28% stake. Institutional investors collectively own 87.99% of the company.
• Marsh & McLennan beat quarterly earnings estimates, reporting $2.96 EPS versus the $2.89 consensus, while revenue rose 6.2% year over year to $7.28 billion.
• The company increased its quarterly dividend from $0.90 to $0.99 per share, equivalent to an annualized $3.96 dividend and a 2.1% yield. Analysts maintain a consensus “Hold” rating with an average price target of $201.94.

BlackRock Inc. purchased a new position in Marsh & McLennan Companies, Inc. (NYSE:MRSH - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 39,502,046 shares of the financial services provider's stock, valued at approximately $6,583,806,000. BlackRock Inc. owned 8.28% of Marsh & McLennan Companies as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also added to or reduced their stakes in the company. State Street Corp purchased a new position in Marsh & McLennan Companies in the 4th quarter worth approximately $4,057,682,000. Capital International Investors purchased a new position in shares of Marsh & McLennan Companies in the 4th quarter worth about $3,482,557,000. Capital World Investors purchased a new position in shares of Marsh & McLennan Companies during the 4th quarter valued at about $3,140,284,000. Wellington Management Group LLP bought a new stake in Marsh & McLennan Companies in the 4th quarter worth approximately $2,967,927,000. Finally, Price T Rowe Associates Inc. MD bought a new position in Marsh & McLennan Companies during the fourth quarter valued at approximately $1,710,101,000. 87.99% of the stock is currently owned by institutional investors.

Marsh & McLennan Companies Price Performance

Shares of NYSE MRSH opened at $184.41 on Tuesday. The stock has a market cap of $88.00 billion, a PE ratio of 22.54, a P/E/G ratio of 2.69 and a beta of 0.59. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.14 and a current ratio of 1.14. Marsh & McLennan Companies, Inc. has a 1 year low of $156.60 and a 1 year high of $213.80. The company's 50-day simple moving average is $178.11.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) last announced its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $2.96 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.89 by $0.07. Marsh & McLennan Companies had a return on equity of 32.67% and a net margin of 14.24%.The business had revenue of $7.28 billion during the quarter. The company's revenue for the quarter was up 6.2% compared to the same quarter last year. Research analysts expect that Marsh & McLennan Companies, Inc. will post 10.43 earnings per share for the current fiscal year.

Marsh & McLennan Companies Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Thursday, July 23rd were paid a dividend of $0.99 per share. The ex-dividend date was Thursday, July 23rd. This represents a $3.96 dividend on an annualized basis and a yield of 2.1%. This is an increase from Marsh & McLennan Companies's previous quarterly dividend of $0.90. Marsh & McLennan Companies's dividend payout ratio (DPR) is 48.41%.

Insider Activity

In other Marsh & McLennan Companies news, CEO John Q. Doyle sold 16,656 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $161.71, for a total transaction of $2,693,441.76. Following the sale, the chief executive officer directly owned 116,811 shares in the company, valued at approximately $18,889,506.81. This trade represents a 12.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Martin South sold 7,100 shares of the stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $189.99, for a total value of $1,348,929.00. Following the sale, the insider directly owned 16,632 shares in the company, valued at $3,159,913.68. This trade represents a 29.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 36,469 shares of company stock worth $6,291,345. Corporate insiders own 0.38% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Morgan Stanley reduced their target price on shares of Marsh & McLennan Companies from $180.00 to $175.00 and set an "equal weight" rating on the stock in a report on Monday, July 6th. Citigroup lowered Marsh & McLennan Companies from a "buy" rating to a "neutral" rating and set a $200.00 target price for the company. in a research note on Wednesday, July 22nd. Wells Fargo & Company lifted their price target on Marsh & McLennan Companies from $186.00 to $188.00 and gave the stock an "equal weight" rating in a research note on Wednesday, July 22nd. Piper Sandler cut their target price on shares of Marsh & McLennan Companies from $190.00 to $182.00 and set a "neutral" rating on the stock in a report on Tuesday, May 26th. Finally, JPMorgan Chase & Co. increased their price target on shares of Marsh & McLennan Companies from $206.00 to $212.00 and gave the company an "overweight" rating in a research report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $201.94.

Marsh & McLennan Companies 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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