Insider Selling: Morningstar (NASDAQ:MORN) Chairman Sells 7,250 Shares of Company Stock

Key Points

• Morningstar Chairman Joseph Mansueto sold 7,250 shares for about $1.75 million at an average price of $241.67 under a pre-arranged Rule 10b5-1 plan. He retained approximately 8.59 million shares after the sale.
• Morningstar’s latest quarterly results beat expectations, with adjusted earnings of $3.48 per share versus $3.04 forecast and revenue of $672.1 million versus $664.75 million expected.
• Shares rose 3.2% to $244.25 in Wednesday trading, near the stock’s 52-week high of $245.02. Analysts’ consensus rating was “Moderate Buy,” with a $235.67 average price target.

Morningstar, Inc. (NASDAQ:MORN - Get Free Report) Chairman Joseph Mansueto sold 7,250 shares of the company's stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $241.67, for a total value of $1,752,107.50. Following the completion of the sale, the chairman owned 8,594,429 shares of the company's stock, valued at $2,077,015,656.43. This represents a 0.08% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Morningstar Trading Up 3.2%

NASDAQ:MORN traded up $7.54 during mid-day trading on Wednesday, hitting $244.25. The company had a trading volume of 254,203 shares, compared to its average volume of 453,532. Morningstar, Inc. has a fifty-two week low of $141.49 and a fifty-two week high of $245.02. The business's fifty day moving average is $206.74 and its two-hundred day moving average is $186.40. The company has a debt-to-equity ratio of 1.62, a quick ratio of 1.05 and a current ratio of 1.05. The firm has a market cap of $9.06 billion, a P/E ratio of 21.33 and a beta of 0.91.

Morningstar (NASDAQ:MORN - Get Free Report) last posted its earnings results on Wednesday, October 28th. The business services provider reported $3.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.04 by $0.44. The company had revenue of $672.10 million during the quarter, compared to analyst estimates of $664.75 million. Morningstar had a return on equity of 45.17% and a net margin of 17.00%.

Hedge Funds Weigh In On Morningstar

Several institutional investors and hedge funds have recently modified their holdings of the business. Bamco Inc. NY bought a new position in shares of Morningstar in the 2nd quarter valued at about $545,937,000. BlackRock Inc. bought a new stake in Morningstar during the second quarter worth about $324,792,000. Dimensional Fund Advisors LP raised its holdings in Morningstar by 9.7% during the first quarter. Dimensional Fund Advisors LP now owns 517,769 shares of the business services provider's stock worth $87,514,000 after acquiring an additional 45,798 shares in the last quarter. Renaissance Technologies LLC raised its stake in shares of Morningstar by 38.6% during the 1st quarter. Renaissance Technologies LLC now owns 448,870 shares of the business services provider's stock worth $75,881,000 after purchasing an additional 125,100 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in Morningstar by 38.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 394,931 shares of the business services provider's stock worth $66,763,000 after acquiring an additional 109,833 shares in the last quarter. 57.02% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts have commented on MORN shares. Wall Street Zen raised shares of Morningstar from a "hold" rating to a "buy" rating in a research note on Saturday, September 26th. BMO Capital Markets lifted their price target on shares of Morningstar from $230.00 to $237.00 and gave the stock an "outperform" rating in a research report on Tuesday, October 13th. Weiss Ratings raised shares of Morningstar from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, October 9th. Finally, UBS Group lowered their price objective on shares of Morningstar from $280.00 to $260.00 and set a "buy" rating for the company in a research report on Tuesday, July 7th. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $235.67.

About Morningstar

Morningstar, Inc is a global provider of independent investment research, data, and financial technology. The company serves asset managers, financial advisors, institutions, retirement plans, and individual investors with information designed to support investment analysis and decision-making.

Its products and services include research and ratings on mutual funds, exchange-traded funds, stocks, bonds, and other investments; portfolio analysis and planning tools; investment-management and advisory services; and software and data solutions for financial professionals and institutions.

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