Marsh & McLennan Companies (NYSE:MRSH) Sets New 12-Month Low - Here's Why

Key Points

• Marsh & McLennan (NYSE: MRSH) hit a new 52-week low, trading as low as $161.38 after recently closing at $161.58. The stock was down about 0.1% on the day with heavy volume of 4.2 million shares.
• Wall Street sentiment is mixed, with recent price-target cuts from Wells Fargo and JPMorgan helping pull the average target down to $205 and the consensus rating to Hold. Analysts cited targets ranging from $178 to $225.
• The company’s latest earnings beat expectations, reporting $3.29 EPS versus the $3.21 estimate and 7.6% revenue growth to $7.3 billion. Marsh & McLennan also declared a quarterly dividend of $0.90 per share, yielding about 2.2% annually.

Marsh & McLennan Companies, Inc. (NYSE:MRSH - Get Free Report) hit a new 52-week low on Tuesday . The stock traded as low as $161.38 and last traded at $161.4840, with a volume of 4216000 shares changing hands. The stock had previously closed at $161.58.

Analysts Set New Price Targets

MRSH has been the subject of several recent research reports. 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 for the company in a research report on Thursday, April 9th. JPMorgan Chase & Co. dropped their price objective on Marsh & McLennan Companies from $226.00 to $206.00 and set an "overweight" rating for the company in a report on Thursday, April 9th. Royal Bank Of Canada reissued a "sector perform" rating and issued a $200.00 target price on shares of Marsh & McLennan Companies in a research note on Friday, January 30th. Raymond James Financial upgraded Marsh & McLennan Companies from an "outperform" rating to a "strong-buy" rating and set a $225.00 target price for the company in a research report on Tuesday, February 17th. Finally, Cantor Fitzgerald lifted their price objective on shares of Marsh & McLennan Companies from $208.00 to $212.00 and gave the stock an "overweight" rating in a research note on Monday, February 2nd. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $205.00.

Marsh & McLennan Companies Trading Down 0.1%

The business has a 50 day simple moving average of $171.77. The company has a market capitalization of $77.80 billion, a PE ratio of 20.19, a price-to-earnings-growth ratio of 2.38 and a beta of 0.65. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 1.28.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) last issued its quarterly earnings results on Thursday, April 16th. The financial services provider reported $3.29 EPS for the quarter, beating analysts' consensus estimates of $3.21 by $0.08. The company had revenue of $7.30 billion for the quarter. Marsh & McLennan Companies had a return on equity of 31.87% and a net margin of 14.26%.The business's revenue for the quarter was up 7.6% compared to the same quarter last year. On average, research analysts anticipate that Marsh & McLennan Companies, Inc. will post 10.37 earnings per share for the current year.

Marsh & McLennan Companies Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Thursday, April 9th will be given a $0.90 dividend. This represents a $3.60 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Thursday, April 9th. Marsh & McLennan Companies's payout ratio is currently 45.00%.

Insiders Place Their Bets

In other Marsh & McLennan Companies news, CEO John Q. Doyle sold 16,655 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $183.30, for a total value of $3,052,861.50. Following the completion of the transaction, the chief executive officer directly owned 116,811 shares in the company, valued at $21,411,456.30. This trade represents a 12.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.38% of the company's stock.

Institutional Trading of Marsh & McLennan Companies

Several institutional investors and hedge funds have recently added to or reduced their stakes in MRSH. PNC Financial Services Group Inc. bought a new stake in shares of Marsh & McLennan Companies in the 1st quarter valued at about $111,591,000. Burling Wealth Partners LLC bought a new position in Marsh & McLennan Companies during the first quarter worth about $2,999,000. Andra AP fonden raised its stake in Marsh & McLennan Companies by 2.4% in the first quarter. Andra AP fonden now owns 55,410 shares of the financial services provider's stock valued at $9,611,000 after buying an additional 1,300 shares during the period. Glenview Trust Co lifted its position in shares of Marsh & McLennan Companies by 39.0% in the first quarter. Glenview Trust Co now owns 92,359 shares of the financial services provider's stock valued at $16,020,000 after buying an additional 25,916 shares during the last quarter. Finally, Madison Asset Management LLC bought a new position in shares of Marsh & McLennan Companies during the 1st quarter worth approximately $61,733,000. 87.99% of the stock is owned by institutional investors.

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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