Marsh & McLennan Companies (NYSE:MRSH) Shares Down 6.2% After Analyst Downgrade

Key Points

• Shares fell 6.2% to about $173.47 after Mizuho cut its price target from $199 to $193 and several other brokers trimmed targets, leaving the consensus rating at "Hold" with an average target of $205.60.
• CEO John Q. Doyle sold 16,655 shares on March 4 at an average $183.30, reducing his position by 12.48%; insiders own just 0.38% of the stock.
• Marsh & McLennan beat Q4 estimates with $2.12 EPS (vs. $1.97 expected) and $6.60B revenue, and announced a $0.90 quarterly dividend (2.1% yield) payable May 15.

Shares of Marsh & McLennan Companies, Inc. (NYSE:MRSH - Get Free Report) traded down 6.2% on Monday after Mizuho lowered their price target on the stock from $199.00 to $193.00. Mizuho currently has a neutral rating on the stock. Marsh & McLennan Companies traded as low as $180.97 and last traded at $173.4670. 3,040,356 shares changed hands during mid-day trading, a decline of 1% from the average session volume of 3,085,199 shares. The stock had previously closed at $185.00.

A number of other analysts have also issued reports on MRSH. Morgan Stanley lowered their target price on Marsh & McLennan Companies from $195.00 to $190.00 and set an "equal weight" rating on the stock in a report on Monday, April 6th. Barclays reduced their price objective on Marsh & McLennan Companies from $209.00 to $206.00 and set an "overweight" rating for the company in a research report on Wednesday, April 8th. Evercore decreased their price objective on Marsh & McLennan Companies from $237.00 to $236.00 and set an "outperform" rating on the stock in a report on Wednesday, January 7th. Weiss Ratings initiated coverage on Marsh & McLennan Companies in a report on Thursday, January 29th. They set a "hold (c)" rating on the stock. Finally, Wells Fargo & Company decreased their price objective on Marsh & McLennan Companies from $203.00 to $178.00 and set an "equal weight" rating on the stock in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $205.60.

Insider Activity at Marsh & McLennan Companies

In related 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 transaction of $3,052,861.50. Following the completion of the transaction, the chief executive officer owned 116,811 shares in the company, valued at $21,411,456.30. This trade represents a 12.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.38% of the stock is owned by company insiders.

Hedge Funds Weigh In On Marsh & McLennan Companies

Several hedge funds and other institutional investors have recently modified their holdings of MRSH. Hsbc Holdings PLC bought a new position in Marsh & McLennan Companies in the 4th quarter valued at $211,804,000. Rockefeller Capital Management L.P. bought a new position in Marsh & McLennan Companies in the 4th quarter valued at $14,651,000. World Investment Advisors bought a new position in Marsh & McLennan Companies in the 4th quarter valued at $3,100,000. PEAK6 LLC bought a new stake in shares of Marsh & McLennan Companies during the fourth quarter worth $3,250,000. Finally, Corient Private Wealth LLC bought a new stake in shares of Marsh & McLennan Companies during the fourth quarter worth $42,968,000. Institutional investors own 87.99% of the company's stock.

Marsh & McLennan Companies Stock Up 3.2%

The stock has a market cap of $83.98 billion, a P/E ratio of 20.58, a P/E/G ratio of 2.29 and a beta of 0.75. The company has a debt-to-equity ratio of 1.20, a quick ratio of 1.10 and a current ratio of 1.10. The company has a 50-day simple moving average of $173.02.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) last released its earnings results on Thursday, January 29th. The financial services provider reported $2.12 earnings per share for the quarter, topping analysts' consensus estimates of $1.97 by $0.15. The company had revenue of $6.60 billion during the quarter, compared to the consensus estimate of $6.52 billion. Marsh & McLennan Companies had a return on equity of 31.60% and a net margin of 15.42%.The firm's quarterly revenue was up 8.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.87 earnings per share. As a group, sell-side analysts expect that Marsh & McLennan Companies, Inc. will post 9.61 EPS for the current fiscal year.

Marsh & McLennan Companies Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Thursday, April 9th will be given a dividend of $0.90 per share. The ex-dividend date is Thursday, April 9th. This represents a $3.60 dividend on an annualized basis and a dividend yield of 2.1%. Marsh & McLennan Companies's payout ratio is presently 42.70%.

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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