Marsh & McLennan Companies (NYSE:MRSH) Trading Down 9.2% - Here's What Happened

Key Points

• Shares fell 9.2% intraday to $167.92 on Monday with ~3.04 million shares traded (about 7% above average), down from a prior close of $185.00.
• The company beat quarterly EPS estimates ($3.29 vs. $3.21) and reported $7.30 billion in revenue, up 7.6% year-over-year, with a net margin of 14.26%.
• Analysts are mixed: the consensus rating is “Hold” with a $205.33 target, while recent notes vary from downgrades and lower targets to a Raymond James upgrade to “strong-buy.”

Marsh & McLennan Companies, Inc. (NYSE:MRSH - Get Free Report)'s stock price dropped 9.2% during trading on Monday . The company traded as low as $180.97 and last traded at $167.9180. Approximately 3,040,356 shares were traded during mid-day trading, an increase of 7% from the average daily volume of 2,853,313 shares. The stock had previously closed at $185.00.

Analyst Ratings Changes

MRSH has been the subject of a number of recent research reports. Royal Bank Of Canada reissued a "sector perform" rating and issued a $200.00 price objective on shares of Marsh & McLennan Companies in a research note on Friday, January 30th. Morgan Stanley dropped their price objective on shares of Marsh & McLennan Companies from $195.00 to $190.00 and set an "equal weight" rating for the company in a research note on Monday, April 6th. Evercore dropped their price objective on shares of Marsh & McLennan Companies from $237.00 to $236.00 and set an "outperform" rating for the company in a research note on Wednesday, January 7th. Keefe, Bruyette & Woods lifted their price objective on shares of Marsh & McLennan Companies from $200.00 to $203.00 and gave the stock a "market perform" rating in a research note on Friday, April 17th. 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 objective for the company in a research note on Tuesday, February 17th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $205.33.

Marsh & McLennan Companies Price Performance

The firm has a market cap of $80.90 billion, a price-to-earnings ratio of 20.99, a P/E/G ratio of 2.42 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. The company has a 50-day simple moving average of $173.42.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) last issued its earnings results on Thursday, April 16th. The financial services provider reported $3.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.21 by $0.08. The firm had revenue of $7.30 billion during the quarter. Marsh & McLennan Companies had a net margin of 14.26% and a return on equity of 31.87%. Marsh & McLennan Companies's quarterly revenue was up 7.6% compared to the same quarter last year. Sell-side analysts predict that Marsh & McLennan Companies, Inc. will post 10.36 earnings per share for the current fiscal year.

Marsh & McLennan Companies Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Thursday, April 9th will be given a $0.90 dividend. This represents a $3.60 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Thursday, April 9th. Marsh & McLennan Companies's payout ratio is 45.00%.

Insider Transactions at Marsh & McLennan Companies

In other Marsh & McLennan Companies news, CEO John Q. Doyle sold 16,655 shares of the business's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $183.30, for a total value of $3,052,861.50. Following the completion of the sale, the chief executive officer directly owned 116,811 shares of the company's stock, valued at $21,411,456.30. The trade was a 12.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.38% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Marsh & McLennan Companies

Several large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in Marsh & McLennan Companies by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 46,589,633 shares of the financial services provider's stock valued at $8,643,309,000 after buying an additional 387,100 shares during the period. State Street Corp purchased a new stake in Marsh & McLennan Companies in the 4th quarter valued at about $4,057,682,000. Capital International Investors purchased a new stake in shares of Marsh & McLennan Companies in the 4th quarter worth approximately $3,482,557,000. Capital World Investors boosted its stake in shares of Marsh & McLennan Companies by 0.5% during the third quarter. Capital World Investors now owns 17,702,898 shares of the financial services provider's stock valued at $3,567,410,000 after purchasing an additional 92,767 shares in the last quarter. Finally, Wellington Management Group LLP purchased a new position in Marsh & McLennan Companies during the fourth quarter valued at approximately $2,967,927,000. 87.99% of the stock is owned by hedge funds and other institutional investors.

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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