R Squared Ltd Boosts Holdings in Morningstar, Inc. (NASDAQ:MORN)

Key Points

• R Squared Ltd significantly increased its stake in Morningstar, Inc. by 1,766.7% in the first quarter, acquiring a total of 2,240 shares valued at approximately $672,000.
• Morningstar reported earnings per share of $2.40 for the last quarter, surpassing expectations, with a net margin of 17.22% and a return on equity of 23.54%.
• The company declared a quarterly dividend of $0.455 per share, reflecting an annualized yield of 0.7% and a dividend payout ratio of 19.38%.

R Squared Ltd lifted its holdings in Morningstar, Inc. (NASDAQ:MORN - Free Report) by 1,766.7% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,240 shares of the business services provider's stock after acquiring an additional 2,120 shares during the period. R Squared Ltd's holdings in Morningstar were worth $672,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently made changes to their positions in the business. Commonwealth Equity Services LLC increased its position in Morningstar by 27.5% in the 4th quarter. Commonwealth Equity Services LLC now owns 1,821 shares of the business services provider's stock valued at $613,000 after buying an additional 393 shares in the last quarter. American Century Companies Inc. increased its position in Morningstar by 22.4% in the 4th quarter. American Century Companies Inc. now owns 8,111 shares of the business services provider's stock valued at $2,731,000 after buying an additional 1,482 shares in the last quarter. LPL Financial LLC increased its position in Morningstar by 13.6% in the 4th quarter. LPL Financial LLC now owns 5,092 shares of the business services provider's stock valued at $1,715,000 after buying an additional 610 shares in the last quarter. Pictet Asset Management Holding SA increased its position in Morningstar by 4.9% in the 4th quarter. Pictet Asset Management Holding SA now owns 3,860 shares of the business services provider's stock valued at $1,300,000 after buying an additional 181 shares in the last quarter. Finally, O Shaughnessy Asset Management LLC increased its position in Morningstar by 3.5% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 3,031 shares of the business services provider's stock valued at $1,021,000 after buying an additional 102 shares in the last quarter. 57.02% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Wall Street Zen lowered Morningstar from a "buy" rating to a "hold" rating in a research report on Saturday, July 5th. BMO Capital Markets raised their target price on shares of Morningstar from $339.00 to $355.00 and gave the company an "outperform" rating in a research note on Monday, May 12th.

Morningstar Stock Down 0.8%

Morningstar stock traded down $2.08 during midday trading on Wednesday, hitting $259.99. 361,021 shares of the stock were exchanged, compared to its average volume of 217,833. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.13 and a quick ratio of 1.13. Morningstar, Inc. has a 1 year low of $250.34 and a 1 year high of $365.00. The company has a 50 day moving average price of $297.57 and a two-hundred day moving average price of $300.42. The firm has a market cap of $10.97 billion, a P/E ratio of 27.69 and a beta of 0.96.

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

Morningstar Dividend Announcement

The company also recently announced 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 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Friday, July 11th. Morningstar's dividend payout ratio is 19.38%.

Insider Transactions at Morningstar

In related news, Director Caroline J. Tsay sold 200 shares of the firm's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $309.84, for a total value of $61,968.00. Following the completion of the sale, the director directly owned 4,345 shares in the company, valued at approximately $1,346,254.80. This trade represents a 4.40% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Chairman Joseph D. Mansueto sold 7,250 shares of the company's stock in a transaction dated Monday, May 19th. The shares were sold at an average price of $309.86, for a total transaction of $2,246,485.00. Following the completion of the transaction, the chairman owned 9,442,731 shares in the company, valued at $2,925,924,627.66. This trade represents a 0.08% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 39,069 shares of company stock valued at $12,038,574. Corporate insiders own 36.20% of the company's stock.

About Morningstar

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.