Marsh & McLennan Companies, Inc. (NYSE:MMC) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Marsh & McLennan Companies, Inc. has received a consensus rating of "Hold" from analysts, with two sell ratings, seven holds, and five buy recommendations.
• As of the latest earnings report, the company posted $2.72 earnings per share, exceeding expectations, alongside a revenue of $6.97 billion for the quarter, marking a 12.1% year-over-year increase.
• The company announced an increase in its quarterly dividend from $0.82 to $0.90, reflecting a dividend yield of 1.8% and a dividend payout ratio of 43.17%.

Shares of Marsh & McLennan Companies, Inc. (NYSE:MMC - Get Free Report) have been given a consensus rating of "Hold" by the fourteen analysts that are covering the stock, MarketBeat reports. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating and five have issued a buy rating on the company. The average 1 year target price among brokers that have issued a report on the stock in the last year is $239.79.

Several research analysts have commented on MMC shares. Barclays dropped their price objective on shares of Marsh & McLennan Companies from $249.00 to $233.00 and set an "equal weight" rating for the company in a report on Monday, July 7th. Keefe, Bruyette & Woods dropped their price objective on shares of Marsh & McLennan Companies from $214.00 to $210.00 and set an "underperform" rating for the company in a report on Monday, July 21st. UBS Group dropped their price objective on shares of Marsh & McLennan Companies from $261.00 to $258.00 and set a "buy" rating for the company in a report on Monday, July 21st. Wells Fargo & Company dropped their price objective on shares of Marsh & McLennan Companies from $229.00 to $226.00 and set an "equal weight" rating for the company in a report on Friday, July 18th. Finally, Jefferies Financial Group increased their price objective on shares of Marsh & McLennan Companies from $237.00 to $244.00 and gave the company a "hold" rating in a report on Friday, April 11th.

Marsh & McLennan Companies Price Performance

Marsh & McLennan Companies stock traded down $1.44 during mid-day trading on Friday, hitting $197.76. The stock had a trading volume of 3,514,400 shares, compared to its average volume of 2,589,960. The firm has a market capitalization of $97.22 billion, a P/E ratio of 23.71, a P/E/G ratio of 2.41 and a beta of 0.80. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 1.19. The firm's 50 day moving average is $217.26 and its 200 day moving average is $224.37. Marsh & McLennan Companies has a one year low of $196.27 and a one year high of $248.00.

Marsh & McLennan Companies (NYSE:MMC - Get Free Report) last issued its earnings results on Thursday, July 17th. The financial services provider reported $2.72 earnings per share for the quarter, topping the consensus estimate of $2.66 by $0.06. The company had revenue of $6.97 billion during the quarter, compared to the consensus estimate of $6.92 billion. Marsh & McLennan Companies had a net margin of 16.00% and a return on equity of 31.90%. Marsh & McLennan Companies's quarterly revenue was up 12.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.41 EPS. On average, sell-side analysts forecast that Marsh & McLennan Companies will post 9.61 earnings per share for the current fiscal year.

Marsh & McLennan Companies Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 15th. Investors of record on Thursday, July 24th will be given a $0.90 dividend. This is an increase from Marsh & McLennan Companies's previous quarterly dividend of $0.82. The ex-dividend date of this dividend is Thursday, July 24th. This represents a $3.60 dividend on an annualized basis and a yield of 1.8%. Marsh & McLennan Companies's dividend payout ratio is currently 43.17%.

Institutional Trading of Marsh & McLennan Companies

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MMC. Accent Capital Management LLC purchased a new stake in Marsh & McLennan Companies in the 1st quarter worth about $25,000. Knuff & Co LLC acquired a new stake in Marsh & McLennan Companies in the first quarter valued at approximately $28,000. Activest Wealth Management boosted its stake in Marsh & McLennan Companies by 2,775.0% in the first quarter. Activest Wealth Management now owns 115 shares of the financial services provider's stock valued at $28,000 after acquiring an additional 111 shares in the last quarter. Ameriflex Group Inc. acquired a new stake in Marsh & McLennan Companies in the fourth quarter valued at approximately $37,000. Finally, City Holding Co. acquired a new stake in Marsh & McLennan Companies in the first quarter valued at approximately $37,000. 87.99% of the stock is owned by hedge funds and other institutional investors.

About Marsh & McLennan Companies

Marsh & McLennan Cos., Inc is a professional services firm, which engages in offering clients advice and solutions in risk, strategy, and people. It operates through the Risk and Insurance Services, and Consulting segments. The Risk and Insurance Services segment is involved in risk management activities, as well as insurance and reinsurance broking and services.