First Trust Advisors LP Sells 38,444 Shares of Morningstar, Inc. $MORN

Key Points

• First Trust Advisors cut its Morningstar stake by 59.9% in the first quarter, selling 38,444 shares and retaining 25,731 shares worth approximately $4.35 million. Institutional investors and hedge funds collectively own 57.02% of the company.
• Insiders have also been net sellers: CFO Michael Holt and Chairman Joseph Mansueto sold shares, while insiders collectively sold 43,970 shares valued at about $7.69 million over the past 90 days.
• Morningstar exceeded quarterly expectations with earnings of $3.10 per share versus the $2.83 consensus and revenue of $663.2 million versus $649.7 million expected. Analysts’ average rating remains “Hold,” with a consensus price target of $227.33.

First Trust Advisors LP reduced its stake in Morningstar, Inc. (NASDAQ:MORN - Free Report) by 59.9% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 25,731 shares of the business services provider's stock after selling 38,444 shares during the quarter. First Trust Advisors LP owned about 0.07% of Morningstar worth $4,350,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of the stock. Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of Morningstar during the fourth quarter worth approximately $25,000. Cassaday & Co Wealth Management LLC bought a new stake in shares of Morningstar in the first quarter valued at approximately $26,000. Measured Wealth Private Client Group LLC acquired a new stake in Morningstar during the third quarter worth approximately $26,000. Osterweis Capital Management Inc. acquired a new stake in Morningstar during the second quarter worth approximately $29,000. Finally, V Square Quantitative Management LLC bought a new position in Morningstar during the 4th quarter worth $35,000. 57.02% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, CFO Michael Holt sold 270 shares of the business's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $166.05, for a total transaction of $44,833.50. Following the completion of the sale, the chief financial officer directly owned 12,326 shares of the company's stock, valued at $2,046,732.30. The trade was a 2.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Chairman Joseph D. Mansueto sold 7,250 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $175.84, for a total value of $1,274,840.00. Following the sale, the chairman directly owned 8,066,990 shares of the company's stock, valued at $1,418,499,521.60. This represents a 0.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 43,970 shares of company stock valued at $7,691,126 over the last ninety days. 38.80% of the stock is owned by corporate insiders.

Morningstar Stock Up 0.7%

NASDAQ:MORN opened at $200.25 on Wednesday. Morningstar, Inc. has a one year low of $141.49 and a one year high of $272.00. The company has a debt-to-equity ratio of 1.66, a current ratio of 1.06 and a quick ratio of 1.06. The company has a market cap of $7.51 billion, a PE ratio of 18.96 and a beta of 0.99. The firm's 50 day simple moving average is $173.10 and its 200 day simple moving average is $176.79.

Morningstar (NASDAQ:MORN - Get Free Report) last issued 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. Morningstar had a return on equity of 38.57% and a net margin of 16.43%.The company had revenue of $663.20 million during the quarter, compared to analysts' expectations of $649.72 million.

Trending Headlines about Morningstar

Here are the key news stories impacting Morningstar this week:

• Positive Sentiment: Q2 earnings beat expectations. Morningstar reported EPS of $3.10 versus the $2.83 consensus estimate and revenue of $663.2 million versus expectations of $649.7 million. Another analysis cited 9.6% year-over-year revenue growth and 29.2% growth in non-GAAP EPS, reinforcing the company’s earnings momentum. Morningstar: Undervalued With A Differentiated Business Model
• Positive Sentiment: Valuation remains a potential catalyst. Morningstar was described as undervalued at roughly 15.6 times estimated 2026 earnings, well below its historical 35–40 times range. The analysis set a fair-value estimate of $246.40 and highlighted strong cash flow, a conservative payout ratio and a 15-year dividend-growth streak. Morningstar: Undervalued With A Differentiated Business Model
• Neutral Sentiment: Investment-research commentary supports brand visibility. Morningstar said artificial-intelligence-related power demand, rather than stronger ESG sentiment, is driving renewed inflows into sustainable ETFs. The commentary may benefit Morningstar’s industry profile, but it does not provide a direct forecast for MORN revenue or earnings. AI, Not ESG, Is Driving the Revival in Sustainable ETFs
• Negative Sentiment: Director selling adds a modest overhang. Director William Lyons sold 1,000 shares for approximately $199,000, reducing his direct position by 7.19%. The transaction is relatively small and may reflect personal portfolio management, but insider selling can temper sentiment in the short term. Morningstar Director Form 4 Filing

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the company. UBS Group cut their target price on Morningstar from $280.00 to $260.00 and set a "buy" rating for the company in a research report on Tuesday, July 7th. Rothschild & Co Redburn set a $210.00 price target on Morningstar in a research note on Thursday, June 18th. Weiss Ratings cut shares of Morningstar from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, July 30th. BMO Capital Markets reiterated an "outperform" rating and set a $212.00 price objective on shares of Morningstar in a research note on Friday, June 26th. Finally, Wall Street Zen raised shares of Morningstar from a "hold" rating to a "buy" rating in a report on Sunday, June 21st. Two research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $227.33.

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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