Marsh & McLennan Companies (NYSE:MMC) Hits New 12-Month Low - What's Next?

Key Points

• Marsh & McLennan Companies shares have reached a new 52-week low of $206.45, with the stock trading last at $206.80 despite closing at $210.40 the previous day.
• Analyst ratings are mixed, with Jefferies raising their target price to $244.00 and several other brokerages adjusting their targets downwards, leading to an average rating of "Hold" and a consensus target price of $239.79.
• The company reported quarterly earnings of $2.72 per share for the latest quarter, surpassing expectations, while also announcing an increased quarterly dividend of $0.90, up from $0.82 previously.

Shares of Marsh & McLennan Companies, Inc. (NYSE:MMC - Get Free Report) hit a new 52-week low during trading on Monday . The stock traded as low as $206.45 and last traded at $206.80, with a volume of 884610 shares. The stock had previously closed at $210.40.

Analyst Ratings Changes

Several brokerages recently commented on MMC. Jefferies Financial Group raised their target price on Marsh & McLennan Companies from $237.00 to $244.00 and gave the stock a "hold" rating in a research report on Friday, April 11th. Barclays reduced their target price on Marsh & McLennan Companies from $249.00 to $233.00 and set an "equal weight" rating for the company in a research report on Monday, July 7th. Wells Fargo & Company cut their price objective on 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. UBS Group cut their price objective on Marsh & McLennan Companies from $261.00 to $258.00 and set a "buy" rating for the company in a report on Monday, July 21st. Finally, Keefe, Bruyette & Woods cut their price objective on Marsh & McLennan Companies from $214.00 to $210.00 and set an "underperform" rating for the company in a report on Monday, July 21st. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating and five have given a buy rating to the company's stock. According to MarketBeat, Marsh & McLennan Companies has an average rating of "Hold" and a consensus target price of $239.79.

Marsh & McLennan Companies Price Performance

The stock has a market cap of $101.45 billion, a price-to-earnings ratio of 24.74, a price-to-earnings-growth ratio of 2.55 and a beta of 0.80. The company has a 50-day simple moving average of $219.49 and a two-hundred day simple moving average of $224.79. The company has a debt-to-equity ratio of 1.19, a quick ratio of 1.20 and a current ratio of 1.20.

Marsh & McLennan Companies (NYSE:MMC - Get Free Report) last posted its quarterly 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 firm had revenue of $6.97 billion for the quarter, compared to analyst estimates of $6.92 billion. Marsh & McLennan Companies had a return on equity of 31.90% and a net margin of 16.00%. The business's quarterly revenue was up 12.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.41 EPS. As a group, equities research analysts forecast that Marsh & McLennan Companies, Inc. will post 9.61 EPS for the current year.

Marsh & McLennan Companies Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 15th. Shareholders of record on Thursday, July 24th will be issued a $0.90 dividend. This represents a $3.60 dividend on an annualized basis and a yield of 1.74%. This is a positive change from Marsh & McLennan Companies's previous quarterly dividend of $0.82. The ex-dividend date of this dividend is Thursday, July 24th. Marsh & McLennan Companies's dividend payout ratio is currently 43.17%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Accent Capital Management LLC bought a new stake in shares of Marsh & McLennan Companies during the 1st quarter valued at $25,000. Knuff & Co LLC bought a new stake in shares of Marsh & McLennan Companies during the 1st quarter valued at $28,000. Activest Wealth Management lifted its position in shares of Marsh & McLennan Companies by 2,775.0% during the 1st 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 during the period. Ameriflex Group Inc. bought a new stake in shares of Marsh & McLennan Companies during the 4th quarter valued at $37,000. Finally, City Holding Co. bought a new stake in shares of Marsh & McLennan Companies during the 1st quarter worth $37,000. 87.99% of the stock is owned by institutional investors and hedge funds.

Marsh & McLennan Companies Company Profile

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.

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