Marsh & McLennan Companies (NYSE:MMC) Earns Neutral Rating from Analysts at Citigroup

Key Points

• Citigroup has initiated coverage on Marsh & McLennan Companies with a "neutral" rating and a price target of $226.00, suggesting a potential upside of 10.46% from its current price.
• Analysts from other firms have varied target price adjustments, resulting in an overall average rating of "Hold" and a consensus price target of $239.94.
• In the latest quarterly earnings, Marsh & McLennan reported $2.72 EPS, which exceeded analysts' expectations, along with a year-over-year revenue increase of 12.1% to $6.97 billion.

Citigroup assumed coverage on shares of Marsh & McLennan Companies (NYSE:MMC - Free Report) in a report published on Wednesday, MarketBeat reports. The brokerage issued a neutral rating and a $226.00 target price on the financial services provider's stock.

A number of other brokerages also recently weighed in on MMC. Barclays lowered their price target on 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 lowered their price target 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. UBS Group lowered their price target 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, Wells Fargo & Company reduced their price objective on Marsh & McLennan Companies from $229.00 to $226.00 and set an "equal weight" rating for the company in a research report on Friday, July 18th. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and six have given a buy rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $239.94.

Marsh & McLennan Companies Trading Down 1.1%

Shares of NYSE MMC traded down $2.26 during midday trading on Wednesday, hitting $207.09. The stock had a trading volume of 1,670,127 shares, compared to its average volume of 2,828,008. The company has a market capitalization of $101.81 billion, a price-to-earnings ratio of 24.83, a PEG ratio of 2.61 and a beta of 0.77. Marsh & McLennan Companies has a 1-year low of $196.27 and a 1-year high of $248.00. The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 1.19. The company has a fifty day moving average price of $211.60 and a 200 day moving average price of $223.43.

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

Marsh & McLennan Companies Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Stockholders of record on Thursday, July 24th will be given a dividend of $0.90 per share. This represents a $3.60 dividend on an annualized basis and a dividend yield of 1.7%. This is a boost 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 payout ratio is presently 43.17%.

Institutional Investors Weigh In On Marsh & McLennan Companies

A number of institutional investors and hedge funds have recently modified their holdings of MMC. Accent Capital Management LLC acquired a new stake in shares of Marsh & McLennan Companies during the first quarter worth $25,000. Knuff & Co LLC acquired a new position in Marsh & McLennan Companies during the first quarter valued at $28,000. Activest Wealth Management raised its position in Marsh & McLennan Companies by 2,775.0% during the first quarter. Activest Wealth Management now owns 115 shares of the financial services provider's stock valued at $28,000 after buying an additional 111 shares during the period. Westside Investment Management Inc. raised its position in Marsh & McLennan Companies by 363.3% during the second quarter. Westside Investment Management Inc. now owns 139 shares of the financial services provider's stock valued at $30,000 after buying an additional 109 shares during the period. Finally, Ameriflex Group Inc. acquired a new position in Marsh & McLennan Companies during the fourth quarter valued at $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.