Canada Pension Plan Investment Board Purchases New Position in Marsh & McLennan Companies, Inc. $MRSH

Key Points

• Canada Pension Plan Investment Board acquired 1.61 million Marsh & McLennan shares worth approximately $267.6 million, giving it a 0.34% stake. Institutional investors collectively own 87.99% of the company.
• Analysts maintain a generally cautious outlook, with an average rating of “Hold” and a consensus price target of $203.50, despite several recent target-price increases.
• Marsh & McLennan exceeded quarterly EPS expectations, reporting $2.96 versus the $2.89 consensus, while revenue rose 6.2% year over year to $7.28 billion. The company also raised its quarterly dividend to $0.99 per share, equivalent to a 2.0% yield.

Canada Pension Plan Investment Board purchased a new position in shares of Marsh & McLennan Companies, Inc. (NYSE:MRSH - Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor purchased 1,605,850 shares of the financial services provider's stock, valued at approximately $267,647,000. Canada Pension Plan Investment Board owned approximately 0.34% of Marsh & McLennan Companies at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. Brighton Jones LLC grew its position in shares of Marsh & McLennan Companies by 51.2% in the fourth quarter. Brighton Jones LLC now owns 8,738 shares of the financial services provider's stock valued at $1,856,000 after purchasing an additional 2,960 shares during the period. Bison Wealth LLC lifted its stake in Marsh & McLennan Companies by 39.6% in the 4th quarter. Bison Wealth LLC now owns 3,064 shares of the financial services provider's stock valued at $651,000 after buying an additional 869 shares in the last quarter. Glenview Trust co boosted its holdings in Marsh & McLennan Companies by 10.8% in the 2nd quarter. Glenview Trust co now owns 3,897 shares of the financial services provider's stock worth $852,000 after buying an additional 379 shares during the last quarter. Osterweis Capital Management Inc. raised its holdings in shares of Marsh & McLennan Companies by 18,440.0% during the second quarter. Osterweis Capital Management Inc. now owns 927 shares of the financial services provider's stock valued at $203,000 after acquiring an additional 922 shares during the last quarter. Finally, Diversify Advisory Services LLC purchased a new position in shares of Marsh & McLennan Companies in the second quarter valued at approximately $1,307,000. 87.99% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other Marsh & McLennan Companies news, Director Lloyd M. Yates sold 12,000 shares of Marsh & McLennan Companies stock in a transaction on Thursday, July 23rd. The stock was sold at an average price of $175.65, for a total value of $2,107,800.00. Following the sale, the director owned 12,001 shares in the company, valued at $2,107,975.65. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Martin South sold 7,100 shares of the company's 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 completion of the transaction, the insider directly owned 16,632 shares in the company, valued at approximately $3,159,913.68. This trade represents a 29.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 36,469 shares of company stock worth $6,291,345 in the last 90 days. 0.38% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on MRSH. Mizuho boosted their price target on Marsh & McLennan Companies from $197.00 to $201.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 22nd. UBS Group lifted their target price on shares of Marsh & McLennan Companies from $212.00 to $216.00 and gave the stock a "buy" rating in a research note on Monday, July 27th. Weiss Ratings upgraded shares of Marsh & McLennan Companies from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, August 7th. Cantor Fitzgerald raised their price target on shares of Marsh & McLennan Companies from $210.00 to $218.00 and gave the stock an "overweight" rating in a research note on Thursday, July 9th. Finally, Morgan Stanley upped their price objective on shares of Marsh & McLennan Companies from $180.00 to $200.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 19th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Marsh & McLennan Companies currently has an average rating of "Hold" and a consensus target price of $203.50.

Marsh & McLennan Companies Stock Down 0.6%

Shares of NYSE:MRSH opened at $193.59 on Wednesday. Marsh & McLennan Companies, Inc. has a 52-week low of $156.60 and a 52-week high of $207.82. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 1.22. The company has a fifty day moving average of $180.99. The stock has a market cap of $92.38 billion, a PE ratio of 23.67, a P/E/G ratio of 2.79 and a beta of 0.59.

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 net margin of 14.24% and a return on equity of 32.67%. The firm had revenue of $7.28 billion during the quarter. Marsh & McLennan Companies's quarterly revenue was up 6.2% compared to the same quarter last year. On average, equities analysts anticipate that Marsh & McLennan Companies, Inc. will post 10.43 earnings per share for the current year.

Marsh & McLennan Companies Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Thursday, July 23rd were issued 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 dividend yield of 2.0%. This is an increase from Marsh & McLennan Companies's previous quarterly dividend of $0.90. Marsh & McLennan Companies's payout ratio is 48.41%.

About Marsh & McLennan Companies

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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