Moelis & Company (NYSE:MC) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Moelis & Company shares rose sharply, opening at $73.50 after closing at $71.04, following a surprising earnings report that showed $0.53 EPS, exceeding expectations of $0.32.
• The company reported a 38.1% increase in revenue year-over-year, totaling $365.38 million for the quarter compared to an estimated $269.57 million.
• Moelis & Company announced a quarterly dividend of $0.65 per share, with a yield of 3.62%, reflecting a dividend payout ratio of 119.27%.
• Analyst ratings show mostly holds and one sell, with price targets ranging from $52.00 to $89.00, indicating mixed sentiments about the stock's future performance.

Shares of Moelis & Company (NYSE:MC - Get Free Report) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $71.04, but opened at $73.50. Moelis & Company shares last traded at $71.90, with a volume of 137,524 shares trading hands.

The asset manager reported $0.53 EPS for the quarter, topping analysts' consensus estimates of $0.32 by $0.21. The business had revenue of $365.38 million for the quarter, compared to the consensus estimate of $269.57 million. Moelis & Company had a net margin of 13.22% and a return on equity of 40.89%. The company's revenue for the quarter was up 38.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.18 EPS.

Moelis & Company Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders of record on Monday, August 4th will be paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 3.62%. Moelis & Company's dividend payout ratio is currently 119.27%.

Analyst Ratings Changes

MC has been the subject of several research reports. The Goldman Sachs Group upped their price target on shares of Moelis & Company from $56.00 to $63.00 and gave the stock a "neutral" rating in a research report on Thursday, May 15th. Wells Fargo & Company upped their price target on shares of Moelis & Company from $50.00 to $64.00 and gave the stock an "equal weight" rating in a research report on Friday, July 11th. Morgan Stanley raised shares of Moelis & Company from an "underweight" rating to an "overweight" rating and upped their price target for the stock from $42.00 to $68.00 in a research report on Monday, June 23rd. Keefe, Bruyette & Woods upped their price target on shares of Moelis & Company from $69.00 to $89.00 and gave the stock an "outperform" rating in a research report on Monday, July 14th. Finally, JPMorgan Chase & Co. lowered their price target on shares of Moelis & Company from $55.00 to $52.00 and set a "neutral" rating for the company in a research report on Thursday, April 24th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat.com, Moelis & Company currently has a consensus rating of "Hold" and an average price target of $66.00.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in MC. CIBC Private Wealth Group LLC grew its position in shares of Moelis & Company by 52.5% in the fourth quarter. CIBC Private Wealth Group LLC now owns 398 shares of the asset manager's stock valued at $30,000 after purchasing an additional 137 shares during the period. Headlands Technologies LLC acquired a new stake in shares of Moelis & Company in the fourth quarter valued at about $31,000. MassMutual Private Wealth & Trust FSB grew its position in shares of Moelis & Company by 1,551.3% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 644 shares of the asset manager's stock valued at $38,000 after purchasing an additional 605 shares during the period. Versant Capital Management Inc grew its position in shares of Moelis & Company by 1,460.8% in the first quarter. Versant Capital Management Inc now owns 796 shares of the asset manager's stock valued at $46,000 after purchasing an additional 745 shares during the period. Finally, eCIO Inc. acquired a new stake in shares of Moelis & Company in the first quarter valued at about $50,000. Hedge funds and other institutional investors own 91.53% of the company's stock.

Moelis & Company Stock Up 1.1%

The company's 50-day moving average price is $62.13 and its 200-day moving average price is $63.56. The firm has a market cap of $5.64 billion, a price-to-earnings ratio of 32.98 and a beta of 1.64.

About Moelis & Company

Moelis & Co operates as a holding company. It engages in the provision of financial advisory, capital raising and asset management services to a client base including corporations, governments, sovereign wealth funds and financial sponsors. The firm focuses on clients including large public multinational corporations, middle market private companies, financial sponsors, entrepreneurs and governments.

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