Hsbc Holdings PLC Decreases Stock Position in MSCI Inc $MSCI

Key Points

• HSBC Holdings reduced its MSCI position by 6.4% in the second quarter, selling 12,622 shares and retaining 184,399 shares valued at approximately $103.1 million. Institutional investors collectively own 89.97% of MSCI.
• MSCI’s latest quarter showed 12.2% year-over-year revenue growth to $867 million, though earnings per share of $4.94 and revenue both fell slightly short of analyst estimates.
• MSCI recently paid a quarterly dividend of $2.05 per share, equal to a 1.4% yield, while analysts maintain a consensus “Buy” rating with an average price target of $709.50.

Hsbc Holdings PLC trimmed its holdings in MSCI Inc (NYSE:MSCI - Free Report) by 6.4% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 184,399 shares of the technology company's stock after selling 12,622 shares during the period. Hsbc Holdings PLC owned 0.25% of MSCI worth $103,120,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently added to or reduced their stakes in the company. Ancora Advisors LLC purchased a new stake in shares of MSCI in the second quarter valued at about $27,000. Harvest Fund Management Co. Ltd purchased a new position in shares of MSCI during the 4th quarter worth approximately $30,000. Elyxium Wealth LLC purchased a new position in shares of MSCI during the 4th quarter worth approximately $34,000. Compound Global Advisors LLC acquired a new position in shares of MSCI during the 2nd quarter worth approximately $34,000. Finally, SHP Wealth Management acquired a new position in shares of MSCI during the 4th quarter worth approximately $36,000. 89.97% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting MSCI

Here are the key news stories impacting MSCI this week:

• Positive Sentiment: Director Rajat Taneja significantly increased his MSCI stake on September 4. The insider purchase may signal confidence in the company’s long-term outlook and provide modest support for investor sentiment. Prominent MSCI Insider Makes Bold Move With Fresh Stock Purchase
• Positive Sentiment: MSCI’s Asia-Pacific equity index rose as easing expectations for Federal Reserve policy helped lift global equities. A more favorable market environment can support demand for MSCI’s benchmarks, analytics and investment products, although this is an indirect benefit. Global Market Today: Asian Stocks Rise as Fed Rate-Hike Bets Ease
• Neutral Sentiment: MSCI will participate in Barclays’ Annual Global Financial Services Conference on September 14, with CFO Andy Wiechmann scheduled for a fireside chat. The event could provide updates on strategy, demand and financial performance, but no new guidance was announced. MSCI to Participate in Barclays Annual Global Financial Services Conference
• Neutral Sentiment: Several reports focus on MSCI removing India-based Swiggy from its Global Standard and related indexes effective September 7 because of foreign-ownership restrictions. The change may cause passive-fund flows in Swiggy, but it is a routine index decision and is not expected to materially affect MSCI’s own revenue or earnings. Swiggy Shares in Focus as MSCI Removes Stock From Global Standard Indexes

MSCI Stock Performance

Shares of NYSE MSCI opened at $572.27 on Monday. The firm has a market cap of $41.60 billion, a P/E ratio of 31.31, a price-to-earnings-growth ratio of 2.19 and a beta of 1.22. MSCI Inc has a 1 year low of $501.08 and a 1 year high of $644.77. The firm's 50 day moving average price is $579.52 and its 200 day moving average price is $574.92.

MSCI (NYSE:MSCI - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The technology company reported $4.94 earnings per share for the quarter, missing the consensus estimate of $4.99 by ($0.05). MSCI had a net margin of 40.74% and a negative return on equity of 55.19%. The business had revenue of $867.00 million during the quarter, compared to analyst estimates of $870.71 million. During the same quarter last year, the firm posted $4.17 earnings per share. The company's revenue was up 12.2% on a year-over-year basis. As a group, equities analysts predict that MSCI Inc will post 19.61 EPS for the current year.

MSCI Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were paid a $2.05 dividend. This represents a $8.20 annualized dividend and a yield of 1.4%. The ex-dividend date was Friday, August 14th. MSCI's dividend payout ratio is presently 44.86%.

Analyst Ratings Changes

A number of equities research analysts have commented on MSCI shares. Weiss Ratings cut MSCI from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, July 30th. JPMorgan Chase & Co. boosted their price target on MSCI from $700.00 to $742.00 and gave the stock an "overweight" rating in a report on Monday, July 20th. Wells Fargo & Company reduced their price objective on MSCI from $700.00 to $690.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 22nd. Rothschild & Co Redburn set a $690.00 price objective on MSCI in a research note on Thursday, June 18th. Finally, UBS Group set a $615.00 price objective on MSCI in a research report on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating and eleven have issued a Buy rating to the company. According to MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $709.50.

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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