Confluence Investment Management LLC Sells 11,311 Shares of Morningstar, Inc. $MORN

Key Points

• Confluence Investment Management reduced its Morningstar stake by 6.4%, selling 11,311 shares and retaining 166,257 shares valued at approximately $25.9 million. Institutional investors collectively own 57.02% of the company.
• Morningstar exceeded second-quarter expectations, reporting $663.2 million in revenue and $3.10 in EPS versus estimates of $649.7 million and $2.83, respectively.
• Analyst sentiment remains mixed: UBS maintained a “buy” rating while lowering its price target to $260, but another firm downgraded the stock to “sell.” The overall consensus is “Hold,” with a target price of $227.33.

Confluence Investment Management LLC lowered its position in Morningstar, Inc. (NASDAQ:MORN - Free Report) by 6.4% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 166,257 shares of the business services provider's stock after selling 11,311 shares during the quarter. Confluence Investment Management LLC owned about 0.44% of Morningstar worth $25,939,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the company. Morgan Stanley boosted its position in shares of Morningstar by 2.4% during the fourth quarter. Morgan Stanley now owns 2,006,325 shares of the business services provider's stock valued at $435,995,000 after buying an additional 47,360 shares during the period. Wellington Management Group LLP boosted its holdings in Morningstar by 85.4% during the 4th quarter. Wellington Management Group LLP now owns 1,136,213 shares of the business services provider's stock valued at $246,910,000 after acquiring an additional 523,387 shares during the period. AQR Capital Management LLC grew its position in Morningstar by 48.0% in the 4th quarter. AQR Capital Management LLC now owns 900,297 shares of the business services provider's stock valued at $195,644,000 after acquiring an additional 292,053 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in Morningstar by 9.7% in the first quarter. Dimensional Fund Advisors LP now owns 517,769 shares of the business services provider's stock worth $87,514,000 after purchasing an additional 45,798 shares during the period. Finally, Renaissance Technologies LLC lifted its position in shares of Morningstar by 38.6% during the first quarter. Renaissance Technologies LLC now owns 448,870 shares of the business services provider's stock worth $75,881,000 after purchasing an additional 125,100 shares during the last quarter. 57.02% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Morningstar

Here are the key news stories impacting Morningstar this week:

• Positive Sentiment: Strong Q2 results support the bullish case. Morningstar reportedly exceeded consensus estimates, with revenue of $663.2 million versus expectations of $649.7 million and EPS of $3.10 versus $2.83. Another analysis cited 9.6% year-over-year revenue growth and 29.2% non-GAAP EPS growth. Morningstar: Undervalued With A Differentiated Business Model
• Positive Sentiment: Analyst sees substantial valuation upside. Morningstar was characterized as undervalued, trading at roughly 15.6 times estimated 2026 earnings compared with its historical 35–40 times range. The analysis assigned a fair-value estimate of $246.40, above the current trading level, while highlighting strong cash flow, a conservative payout ratio and a 15-year dividend-growth streak. Morningstar: Undervalued With A Differentiated Business Model
• Neutral Sentiment: Morningstar’s industry commentary provides modest brand support. The company said artificial-intelligence-related power demand, rather than renewed ESG enthusiasm, is driving a recovery in sustainable ETF inflows. This may reinforce Morningstar’s visibility as a provider of investment research, but it does not represent a direct earnings forecast. AI, Not ESG, Is Driving the Revival in Sustainable ETFs
• Negative Sentiment: Director selling creates a minor overhang. Director William M. Lyons sold 1,000 shares for approximately $199,000, reducing his direct ownership by 7.19%. The transaction is relatively small compared with Morningstar’s market value and does not by itself indicate a change in business fundamentals. Morningstar Director Form 4 Filing

Analyst Ratings Changes

A number of brokerages have recently issued reports on MORN. UBS Group lowered their target price on shares of Morningstar from $280.00 to $260.00 and set a "buy" rating for the company in a research note on Tuesday, July 7th. Weiss Ratings lowered shares of Morningstar from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday. Wall Street Zen upgraded shares of Morningstar from a "hold" rating to a "buy" rating in a research note on Sunday, June 21st. BMO Capital Markets reaffirmed an "outperform" rating and set a $212.00 price target on shares of Morningstar in a research note on Friday, June 26th. Finally, Rothschild & Co Redburn set a $210.00 price target on Morningstar in a report on Thursday, June 18th. Two analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $227.33.

Morningstar Stock Up 3.3%

Shares of NASDAQ MORN opened at $198.93 on Tuesday. Morningstar, Inc. has a 12-month low of $141.49 and a 12-month high of $276.43. The stock's fifty day simple moving average is $172.65 and its two-hundred day simple moving average is $176.93. The stock has a market capitalization of $7.46 billion, a PE ratio of 18.84 and a beta of 0.99. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 1.66.

Morningstar (NASDAQ:MORN - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The business services provider reported $3.10 EPS for the quarter, topping the consensus estimate of $2.83 by $0.27. Morningstar had a return on equity of 38.57% and a net margin of 16.43%.The firm had revenue of $663.20 million during the quarter, compared to analyst estimates of $649.72 million.

Insider Transactions at Morningstar

In other news, Chairman Joseph D. Mansueto sold 7,250 shares of Morningstar stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $175.84, for a total value of $1,274,840.00. Following the transaction, the chairman owned 8,066,990 shares of the company's stock, valued at $1,418,499,521.60. The trade was a 0.09% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William M. Lyons sold 1,000 shares of the business's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $199.00, for a total transaction of $199,000.00. Following the transaction, the director owned 12,904 shares of the company's stock, valued at approximately $2,567,896. This trade represents a 7.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 51,220 shares of company stock valued at $8,896,294 over the last quarter. 38.80% of the stock is currently owned by corporate insiders.

Morningstar Company Profile

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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