Goldman Sachs Group Inc. Trims Stake in MSCI Inc $MSCI

Key Points

• Goldman Sachs cut its MSCI stake by 9.9% in the fourth quarter, selling 55,667 shares and leaving it with 506,752 shares worth about $290.7 million.
• MSCI reported better-than-expected quarterly results, with EPS of $4.55 versus estimates of $4.38 and revenue of $850.8 million, up 14.1% year over year.
• Analysts remain bullish on the stock, with multiple firms raising targets and the consensus rating sitting at Buy with an average price target of $697.70.

Goldman Sachs Group Inc. reduced its holdings in shares of MSCI Inc (NYSE:MSCI - Free Report) by 9.9% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 506,752 shares of the technology company's stock after selling 55,667 shares during the period. Goldman Sachs Group Inc. owned about 0.67% of MSCI worth $290,739,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Mowery & Schoenfeld Wealth Management LLC increased its holdings in MSCI by 341.7% during the fourth quarter. Mowery & Schoenfeld Wealth Management LLC now owns 53 shares of the technology company's stock valued at $30,000 after buying an additional 41 shares during the last quarter. Eagle Bay Advisors LLC purchased a new stake in MSCI during the fourth quarter valued at approximately $34,000. Elyxium Wealth LLC purchased a new stake in MSCI during the fourth quarter valued at approximately $34,000. Strategic Wealth Investment Group LLC purchased a new stake in MSCI during the second quarter valued at approximately $36,000. Finally, JPL Wealth Management LLC purchased a new stake in MSCI during the third quarter valued at approximately $36,000. 89.97% of the stock is owned by hedge funds and other institutional investors.

MSCI Price Performance

MSCI opened at $616.28 on Friday. The firm has a market cap of $44.87 billion, a P/E ratio of 35.20, a PEG ratio of 2.34 and a beta of 1.24. MSCI Inc has a 1-year low of $501.08 and a 1-year high of $644.68. The company has a 50 day simple moving average of $578.01 and a two-hundred day simple moving average of $568.85.

MSCI (NYSE:MSCI - Get Free Report) last issued its earnings results on Tuesday, April 21st. The technology company reported $4.55 earnings per share for the quarter, topping analysts' consensus estimates of $4.38 by $0.17. MSCI had a net margin of 40.74% and a negative return on equity of 65.48%. The firm had revenue of $850.80 million during the quarter, compared to analyst estimates of $830.91 million. During the same quarter in the prior year, the business earned $4.00 earnings per share. MSCI's revenue for the quarter was up 14.1% on a year-over-year basis. Equities analysts anticipate that MSCI Inc will post 19.62 earnings per share for the current year.

MSCI Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 15th were given a dividend of $2.05 per share. The ex-dividend date was Friday, May 15th. This represents a $8.20 dividend on an annualized basis and a dividend yield of 1.3%. MSCI's dividend payout ratio is currently 46.83%.

Insiders Place Their Bets

In related news, insider Alvise J. Munari sold 10,000 shares of the company's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $592.04, for a total transaction of $5,920,400.00. Following the completion of the transaction, the insider owned 23,548 shares in the company, valued at approximately $13,941,357.92. This represents a 29.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Andrew C. Wiechmann sold 450 shares of the company's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $560.00, for a total transaction of $252,000.00. Following the transaction, the chief financial officer owned 22,544 shares of the company's stock, valued at approximately $12,624,640. This represents a 1.96% decrease in their position. The SEC filing for this sale provides additional information. 3.76% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of analysts have commented on the stock. Wells Fargo & Company raised shares of MSCI from an "equal weight" rating to an "overweight" rating and upped their target price for the company from $650.00 to $700.00 in a report on Wednesday, May 27th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $655.00 price target on shares of MSCI in a research report on Wednesday, April 22nd. Morgan Stanley upped their price target on shares of MSCI from $719.00 to $727.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 22nd. Raymond James Financial reiterated a "strong-buy" rating and issued a $730.00 price target on shares of MSCI in a research report on Tuesday, April 21st. Finally, Weiss Ratings upgraded shares of MSCI from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday. One analyst has rated the stock with a Strong Buy rating and ten have assigned a Buy rating to the stock. According to data from MarketBeat.com, MSCI presently has an average rating of "Buy" and an average price target of $697.70.

MSCI Profile

MSCI Inc is a global provider of investment decision support tools and services for the financial industry. The company is best known for its family of market indexes, which are widely used as benchmarks by asset managers and as the basis for exchange-traded funds and other passive products. In addition to index construction and licensing, MSCI offers portfolio analytics, risk models, factor and performance attribution tools, and a suite of data and technology solutions designed to support portfolio management and trading.

Beyond traditional indexing and risk analytics, MSCI has expanded into environmental, social and governance (ESG) research and ratings, offering data, scores and screening tools that help investors integrate sustainability considerations into investment processes.

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