Palouse Capital Management Inc. Buys New Holdings in Marsh & McLennan Companies, Inc. $MRSH

Key Points

• Palouse Capital Management disclosed a new first-quarter position in Marsh & McLennan, buying 13,866 shares valued at about $2.4 million. The stake represents roughly 1.6% of the fund’s portfolio.
• Marsh & McLennan reported better-than-expected quarterly earnings, posting $3.29 EPS versus the $3.21 consensus and revenue of $7.3 billion, up 7.6% year over year.
• Despite the solid results, analysts have become more cautious overall, with several target prices cut and the stock carrying a consensus “Hold” rating and average target price of about $200.19.

Palouse Capital Management Inc. purchased a new position in Marsh & McLennan Companies, Inc. (NYSE:MRSH - Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 13,866 shares of the financial services provider's stock, valued at approximately $2,405,000. Marsh & McLennan Companies comprises about 1.6% of Palouse Capital Management Inc.'s portfolio, making the stock its 26th biggest position.

A number of other hedge funds and other institutional investors have also modified their holdings of MRSH. Vanguard Group Inc. lifted its position in shares of Marsh & McLennan Companies by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 46,589,633 shares of the financial services provider's stock worth $8,643,309,000 after purchasing an additional 387,100 shares during the last quarter. State Street Corp purchased a new position in Marsh & McLennan Companies in the fourth quarter valued at $4,057,682,000. Capital International Investors acquired a new stake in Marsh & McLennan Companies in the fourth quarter valued at $3,482,557,000. Capital World Investors lifted its holdings in Marsh & McLennan Companies by 0.5% during the 3rd quarter. Capital World Investors now owns 17,702,898 shares of the financial services provider's stock worth $3,567,410,000 after buying an additional 92,767 shares during the last quarter. Finally, Wellington Management Group LLP acquired a new position in shares of Marsh & McLennan Companies during the 4th quarter worth about $2,967,927,000. 87.99% of the stock is currently owned by institutional investors and hedge funds.

Marsh & McLennan Companies Stock Up 3.1%

MRSH opened at $171.84 on Thursday. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 1.28. Marsh & McLennan Companies, Inc. has a 52 week low of $156.60 and a 52 week high of $217.07. The company has a market cap of $83.02 billion, a price-to-earnings ratio of 21.48, a PEG ratio of 2.43 and a beta of 0.61.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) last announced its earnings results on Thursday, April 16th. The financial services provider reported $3.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.21 by $0.08. The business had revenue of $7.30 billion for the quarter. Marsh & McLennan Companies had a net margin of 14.26% and a return on equity of 31.87%. The business's revenue was up 7.6% compared to the same quarter last year. Sell-side analysts forecast that Marsh & McLennan Companies, Inc. will post 10.38 EPS for the current year.

Insiders Place Their Bets

In other Marsh & McLennan Companies news, CEO John Q. Doyle sold 16,656 shares of the firm's stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $161.71, for a total transaction of $2,693,441.76. Following the transaction, the chief executive officer directly owned 116,811 shares of the company's stock, valued at approximately $18,889,506.81. This trade represents a 12.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.38% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

MRSH has been the topic of several research analyst reports. Morgan Stanley cut their target price on Marsh & McLennan Companies from $195.00 to $190.00 and set an "equal weight" rating on the stock in a research report on Monday, April 6th. Barclays dropped their price target on shares of Marsh & McLennan Companies from $209.00 to $206.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 8th. UBS Group reduced their price objective on shares of Marsh & McLennan Companies from $230.00 to $203.00 and set a "buy" rating for the company in a research report on Tuesday, June 9th. Weiss Ratings cut shares of Marsh & McLennan Companies from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, May 11th. Finally, Wells Fargo & Company dropped their target price on shares of Marsh & McLennan Companies from $203.00 to $178.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 9th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Marsh & McLennan Companies presently has a consensus rating of "Hold" and an average target price of $200.19.

About Marsh & McLennan Companies

Marsh & McLennan Companies NYSE: MMC is a global professional services firm headquartered in New York City that provides advice and solutions in the areas of risk, strategy and people. Founded in 1905, the company has grown into a diversified group of businesses focused on insurance brokerage and risk management, reinsurance, human capital and investment consulting, and management consulting. Its long history and scale position it as a prominent adviser to corporations, governments and other institutions seeking to manage risk and optimize human and financial capital.

The firm operates through several well-known subsidiaries and business units that specialize in distinct services.

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