Dimensional Fund Advisors LP Acquires 45,798 Shares of Morningstar, Inc. $MORN

Key Points

• Dimensional Fund Advisors increased its Morningstar stake by 9.7%, adding 45,798 shares to own 517,769 shares worth approximately $87.5 million. Institutional investors and hedge funds collectively own 57.02% of the company.
• Morningstar reported a strong second quarter, with adjusted EPS of $3.10 and revenue of $663.2 million, surpassing analyst estimates. Operating income, net income and operating cash flow also rose substantially, supported by growth in Morningstar Credit, Direct and PitchBook.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and average price target of $227.33, but insider selling and the company’s $1.7 billion debt load remain potential concerns.

Dimensional Fund Advisors LP boosted its holdings in Morningstar, Inc. (NASDAQ:MORN - Free Report) by 9.7% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 517,769 shares of the business services provider's stock after purchasing an additional 45,798 shares during the period. Dimensional Fund Advisors LP owned about 1.36% of Morningstar worth $87,514,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Morningstar during the 4th quarter worth about $25,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of Morningstar in the third quarter valued at about $26,000. Osterweis Capital Management Inc. acquired a new stake in shares of Morningstar in the second quarter valued at about $29,000. V Square Quantitative Management LLC bought a new stake in Morningstar during the fourth quarter worth about $35,000. Finally, WPG Advisers LLC raised its holdings in Morningstar by 36.0% during 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 in the last quarter. 57.02% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

MORN has been the subject of a number of analyst reports. Wall Street Zen upgraded Morningstar from a "hold" rating to a "buy" rating in a research note on Sunday, June 21st. Rothschild & Co Redburn set a $210.00 price objective on Morningstar in a research note on Thursday, June 18th. BMO Capital Markets reissued an "outperform" rating and issued a $212.00 price objective on shares of Morningstar in a report on Friday, June 26th. UBS Group decreased 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. Finally, Weiss Ratings upgraded shares of 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 data from MarketBeat, Morningstar has a consensus rating of "Moderate Buy" and an average target price of $227.33.

Key Morningstar News

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.

Insider Activity

In related news, CFO Michael Holt sold 270 shares of the stock in a transaction on Friday, May 15th. The stock was sold at an average price of $166.05, for a total value of $44,833.50. Following the sale, the chief financial officer owned 12,326 shares in the company, valued at approximately $2,046,732.30. This represents a 2.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director William M. Lyons sold 700 shares of the firm's stock in a transaction on 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 directly owned 13,904 shares of the company's stock, valued at $2,488,816. This represents a 4.79% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 64,720 shares of company stock valued at $11,169,471 over the last three months. Insiders own 38.80% of the company's stock.

Morningstar Trading Up 2.3%

Shares of NASDAQ:MORN opened at $198.66 on Thursday. Morningstar, Inc. has a 52-week low of $141.49 and a 52-week high of $289.63. The company has a debt-to-equity ratio of 1.66, a quick ratio of 1.03 and a current ratio of 1.03. The company has a market capitalization of $7.56 billion, a P/E ratio of 20.23 and a beta of 1.01. The company has a 50-day simple moving average of $171.61 and a 200 day simple moving average of $177.40.

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

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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