Charles Schwab Investment Management Inc. Increases Stock Holdings in Morningstar, Inc. $MORN

Key Points

• Charles Schwab Investment Management Inc. increased its holdings in Morningstar by 1.2% in Q1, owning a total of 196,465 shares valued at approximately $58.9 million.
• Morningstar reported $2.40 earnings per share (EPS) for the last quarter, surpassing analyst estimates of $2.21.
• The company recently declared a quarterly dividend of $0.455, representing an annualized yield of 0.7% and a payout ratio of 19.38%.

Charles Schwab Investment Management Inc. grew its stake in Morningstar, Inc. (NASDAQ:MORN - Free Report) by 1.2% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 196,465 shares of the business services provider's stock after acquiring an additional 2,270 shares during the quarter. Charles Schwab Investment Management Inc. owned 0.46% of Morningstar worth $58,914,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Dimensional Fund Advisors LP lifted its holdings in shares of Morningstar by 4.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 305,014 shares of the business services provider's stock valued at $102,719,000 after purchasing an additional 13,155 shares in the last quarter. Northern Trust Corp lifted its holdings in shares of Morningstar by 18.6% during the fourth quarter. Northern Trust Corp now owns 230,149 shares of the business services provider's stock valued at $77,505,000 after purchasing an additional 36,133 shares in the last quarter. Premier Fund Managers Ltd lifted its holdings in shares of Morningstar by 13.4% during the first quarter. Premier Fund Managers Ltd now owns 170,068 shares of the business services provider's stock valued at $50,341,000 after purchasing an additional 20,068 shares in the last quarter. Balyasny Asset Management L.P. bought a new position in shares of Morningstar during the fourth quarter valued at $56,584,000. Finally, GAMMA Investing LLC lifted its holdings in shares of Morningstar by 30,785.9% during the first quarter. GAMMA Investing LLC now owns 144,237 shares of the business services provider's stock valued at $43,252,000 after purchasing an additional 143,770 shares in the last quarter. 57.02% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on MORN. BMO Capital Markets increased their target price on Morningstar from $339.00 to $355.00 and gave the company an "outperform" rating in a report on Monday, May 12th. Wall Street Zen downgraded Morningstar from a "buy" rating to a "hold" rating in a report on Saturday, July 5th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, Morningstar currently has a consensus rating of "Moderate Buy" and an average price target of $361.67.

Morningstar Stock Performance

Shares of NASDAQ MORN traded up $1.25 during trading on Tuesday, hitting $259.79. The company had a trading volume of 74,898 shares, compared to its average volume of 219,844. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.13 and a current ratio of 1.13. Morningstar, Inc. has a 12 month low of $250.34 and a 12 month high of $365.00. The stock has a 50 day simple moving average of $288.69 and a 200 day simple moving average of $295.78. The firm has a market capitalization of $10.96 billion, a P/E ratio of 27.67 and a beta of 0.96.

Morningstar (NASDAQ:MORN - Get Free Report) last released its earnings results on Wednesday, July 30th. The business services provider reported $2.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.21 by $0.19. Morningstar had a return on equity of 23.54% and a net margin of 17.22%.The firm had revenue of $605.10 million during the quarter, compared to analysts' expectations of $605.84 million.

Morningstar Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Friday, July 11th were issued a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a yield of 0.7%. The ex-dividend date was Friday, July 11th. Morningstar's dividend payout ratio (DPR) is currently 19.38%.

Insiders Place Their Bets

In other Morningstar news, Chairman Joseph D. Mansueto sold 7,250 shares of the firm's stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $306.43, for a total transaction of $2,221,617.50. Following the completion of the transaction, the chairman owned 9,430,378 shares in the company, valued at $2,889,750,730.54. This trade represents a 0.08% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. In the last three months, insiders sold 53,397 shares of company stock worth $14,428,907. Company insiders own 36.20% of the company's stock.

Morningstar Profile

Morningstar, Inc provides independent investment insights in the United States, Asia. Australia, Continental Europe, the United Kingdom, and internationally. The company operates in five segments: Morningstar Data and Analytics; PitchBook; Morningstar Wealth; Morningstar Credit; and Morningstar Retirement.