Marsh & McLennan Companies (NYSE:MRSH) Trading Down 13.1% After Analyst Downgrade

Key Points

• Marsh & McLennan shares fell 13.1% after Piper Sandler cut its price target from $190 to $182 and kept a neutral rating. The stock traded as low as $180.97 and saw heavier-than-normal volume.
• Other analysts also trimmed targets recently, though the overall Street view remains cautious: the stock currently carries an average “Hold” rating with a consensus price target of $203.56.
• The company recently reported better-than-expected quarterly results, with EPS of $3.29 versus the $3.21 estimate and revenue up 7.6% year over year to $7.30 billion.

Marsh & McLennan Companies, Inc. (NYSE:MRSH - Get Free Report)'s stock price was down 13.1% on Wednesday after Piper Sandler lowered their price target on the stock from $190.00 to $182.00. Piper Sandler currently has a neutral rating on the stock. Marsh & McLennan Companies traded as low as $180.97 and last traded at $160.6980. Approximately 3,040,356 shares traded hands during trading, an increase of 19% from the average daily volume of 2,555,264 shares. The stock had previously closed at $185.00.

Several other equities analysts also recently weighed in on the stock. JPMorgan Chase & Co. lowered their price target on shares of Marsh & McLennan Companies from $226.00 to $206.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Barclays lowered their price target on shares of Marsh & McLennan Companies from $209.00 to $206.00 and set an "overweight" rating on the stock in a report on Wednesday, April 8th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $200.00 price target on shares of Marsh & McLennan Companies in a report on Friday, January 30th. Mizuho lowered their price target on shares of Marsh & McLennan Companies from $199.00 to $193.00 and set a "neutral" rating on the stock in a report on Monday, April 13th. Finally, Raymond James Financial raised shares of Marsh & McLennan Companies from an "outperform" rating to a "strong-buy" rating and set a $225.00 price target on the stock in a report on Tuesday, February 17th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Marsh & McLennan Companies presently has an average rating of "Hold" and an average target price of $203.56.

Insider Activity

In other news, CEO John Q. Doyle sold 16,655 shares of Marsh & McLennan Companies stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $183.30, for a total transaction of $3,052,861.50. Following the sale, 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 transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.38% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Marsh & McLennan Companies

Several large investors have recently bought and sold shares of MRSH. Brighton Jones LLC increased its position in Marsh & McLennan Companies by 51.2% in the fourth quarter. Brighton Jones LLC now owns 8,738 shares of the financial services provider's stock worth $1,856,000 after purchasing an additional 2,960 shares during the last quarter. Bison Wealth LLC increased its position in Marsh & McLennan Companies by 39.6% in the fourth quarter. Bison Wealth LLC now owns 3,064 shares of the financial services provider's stock worth $651,000 after purchasing an additional 869 shares during the last quarter. Glenview Trust co increased its position in Marsh & McLennan Companies by 10.8% in the second quarter. Glenview Trust co now owns 3,897 shares of the financial services provider's stock worth $852,000 after purchasing an additional 379 shares during the last quarter. Osterweis Capital Management Inc. increased its position in Marsh & McLennan Companies by 18,440.0% in the second quarter. Osterweis Capital Management Inc. now owns 927 shares of the financial services provider's stock worth $203,000 after purchasing an additional 922 shares during the last quarter. Finally, Diversify Advisory Services LLC bought a new stake in Marsh & McLennan Companies in the second quarter worth $1,307,000. Institutional investors own 87.99% of the company's stock.

Marsh & McLennan Companies Price Performance

The company has a debt-to-equity ratio of 1.28, a current ratio of 1.11 and a quick ratio of 1.11. The company has a market cap of $77.14 billion, a P/E ratio of 19.96, a PEG ratio of 2.34 and a beta of 0.65. The firm's 50-day moving average is $165.50 and its two-hundred day moving average is $172.43.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) last posted its quarterly earnings data on Thursday, April 16th. The financial services provider reported $3.29 earnings per share for the quarter, beating analysts' consensus estimates of $3.21 by $0.08. Marsh & McLennan Companies had a net margin of 14.26% and a return on equity of 31.87%. The business had revenue of $7.30 billion for the quarter. The company's revenue for the quarter was up 7.6% compared to the same quarter last year. Analysts anticipate that Marsh & McLennan Companies, Inc. will post 10.38 earnings per share for the current year.

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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