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

Key Points

• Shares fell 6.2% intraday after Bank of America cut its price target from $181 to $174 and assigned an underperform rating; the stock traded near $173.47 on roughly 3.04 million shares, close to average volume.
• Analyst coverage is mixed but cautious: the consensus rating is "Hold" with an average target of $205.13, reflecting one Strong Buy, five Buys, ten Holds and one Sell across brokers.
• Insider and shareholder actions: CEO John Q. Doyle sold 16,655 shares at about $183.30 (a 12.48% reduction in his holdings), and the company declared a quarterly dividend of $0.90 per share (annualized $3.60, ~2.1% yield) payable May 15.

Shares of Marsh & McLennan Companies, Inc. (NYSE:MRSH - Get Free Report) dropped 6.2% during mid-day trading on Monday after Bank of America lowered their price target on the stock from $181.00 to $174.00. Bank of America currently has an underperform rating on the stock. Marsh & McLennan Companies traded as low as $180.97 and last traded at $173.4670. Approximately 3,040,356 shares changed hands during mid-day trading, a decline of 1% from the average daily volume of 3,085,199 shares. The stock had previously closed at $185.00.

A number of other brokerages have also issued reports on MRSH. Mizuho cut their price target on Marsh & McLennan Companies from $199.00 to $193.00 and set a "neutral" rating for the company in a research note on Monday. Citigroup increased their price target on Marsh & McLennan Companies from $201.00 to $205.00 and gave the stock a "neutral" rating in a research note on Tuesday, February 3rd. JPMorgan Chase & Co. cut their price target on Marsh & McLennan Companies from $226.00 to $206.00 and set an "overweight" rating for the company in a research note on Thursday, April 9th. Weiss Ratings initiated coverage on Marsh & McLennan Companies in a research note on Thursday, January 29th. They issued a "hold (c)" rating for the company. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $200.00 price target on shares of Marsh & McLennan Companies in a research note on Friday, January 30th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Marsh & McLennan Companies has a consensus rating of "Hold" and an average target price of $205.13.

Insider Buying and Selling at Marsh & McLennan Companies

In other news, CEO John Q. Doyle sold 16,655 shares of the firm's stock in a transaction dated 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.38% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. Hanson & Doremus Investment Management boosted its position in shares of Marsh & McLennan Companies by 31.3% during the third quarter. Hanson & Doremus Investment Management now owns 214 shares of the financial services provider's stock valued at $43,000 after buying an additional 51 shares during the period. D.A. Davidson & CO. boosted its position in shares of Marsh & McLennan Companies by 1.2% during the third quarter. D.A. Davidson & CO. now owns 4,514 shares of the financial services provider's stock valued at $910,000 after buying an additional 54 shares during the period. Procyon Advisors LLC boosted its position in shares of Marsh & McLennan Companies by 2.5% during the fourth quarter. Procyon Advisors LLC now owns 2,279 shares of the financial services provider's stock valued at $423,000 after buying an additional 56 shares during the period. PFG Investments LLC boosted its position in shares of Marsh & McLennan Companies by 3.3% during the fourth quarter. PFG Investments LLC now owns 1,758 shares of the financial services provider's stock valued at $326,000 after buying an additional 56 shares during the period. Finally, Lindenwold Advisors INC boosted its position in shares of Marsh & McLennan Companies by 0.4% during the third quarter. Lindenwold Advisors INC now owns 14,994 shares of the financial services provider's stock valued at $3,022,000 after buying an additional 62 shares during the period. Hedge funds and other institutional investors own 87.99% of the company's stock.

Marsh & McLennan Companies Stock Down 0.0%

The company has a market capitalization of $83.68 billion, a PE ratio of 20.50, a P/E/G ratio of 2.37 and a beta of 0.75. The firm's 50 day moving average is $172.97. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 1.20.

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

Marsh & McLennan Companies Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Thursday, April 9th will be issued a dividend of $0.90 per share. The ex-dividend date of this dividend 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 42.70%.

Marsh & McLennan Companies Company Profile

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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