Moelis & Company (NYSE:MC) Shares Gap Up Following Earnings Beat

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.

Moelis & Company (NYSE:MC - Get Free Report) shares gapped up before the market opened on Friday following a stronger than expected earnings report. 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 changing hands.

The asset manager reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.21. The company 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 14.31% and a return on equity of 45.30%. The company's revenue was up 38.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.18 EPS.

Moelis & Company Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Investors of record on Monday, August 4th will be paid a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 3.67%. The ex-dividend date of this dividend is Monday, August 4th. Moelis & Company's dividend payout ratio is currently 102.36%.

Analyst Ratings Changes

Several equities analysts have weighed in on MC shares. Morgan Stanley raised Moelis & Company from an "underweight" rating to an "overweight" rating and lifted their target price for the company from $42.00 to $68.00 in a research note on Monday, June 23rd. Wells Fargo & Company raised their price target on shares of Moelis & Company from $50.00 to $64.00 and gave the stock an "equal weight" rating in a report on Friday, July 11th. JMP Securities reiterated a "market perform" rating on shares of Moelis & Company in a research note on Thursday, April 24th. JPMorgan Chase & Co. cut their target price 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. Finally, The Goldman Sachs Group boosted their price target on shares of Moelis & Company from $56.00 to $63.00 and gave the company a "neutral" rating in a report on Thursday, May 15th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and two have issued a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $66.00.

Institutional Trading of Moelis & Company

Large investors have recently added to or reduced their stakes in the business. New York State Teachers Retirement System lifted its stake in shares of Moelis & Company by 46.9% in the 2nd quarter. New York State Teachers Retirement System now owns 24,232 shares of the asset manager's stock valued at $1,510,000 after purchasing an additional 7,732 shares during the last quarter. Capital Management Corp VA raised its holdings in Moelis & Company by 17.4% during the second quarter. Capital Management Corp VA now owns 246,151 shares of the asset manager's stock valued at $15,340,000 after buying an additional 36,498 shares in the last quarter. Moran Wealth Management LLC acquired a new stake in shares of Moelis & Company in the second quarter worth about $2,358,000. Verdence Capital Advisors LLC lifted its position in shares of Moelis & Company by 1.8% in the second quarter. Verdence Capital Advisors LLC now owns 39,358 shares of the asset manager's stock worth $2,453,000 after buying an additional 683 shares during the last quarter. Finally, Yousif Capital Management LLC boosted its stake in shares of Moelis & Company by 6.2% during the 2nd quarter. Yousif Capital Management LLC now owns 28,397 shares of the asset manager's stock worth $1,770,000 after acquiring an additional 1,662 shares in the last quarter. 91.53% of the stock is owned by institutional investors.

Moelis & Company Trading Down 0.6%

The firm has a market cap of $5.56 billion, a price-to-earnings ratio of 27.90 and a beta of 1.64. The stock has a fifty day moving average price of $62.51 and a 200 day moving average price of $63.38.

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.