Morgan Stanley Issues Pessimistic Forecast for Marsh & McLennan Companies (NYSE:MRSH) Stock Price

Key Points

• Morgan Stanley cut its price target on Marsh & McLennan from $195 to $190 and kept an "equal weight" rating, implying roughly an 8.06% upside from the prior close.
• Analyst sentiment is mixed with a consensus of "Hold" and an average target of $211.75; the breakdown shows 1 Strong Buy, 5 Buy, 11 Hold and 1 Sell.
• Marsh & McLennan recently beat estimates with $2.12 EPS (vs. $1.97) and $6.60B revenue (up 8.7% year-over-year), yet shares trade near $175.84 while CEO John Q. Doyle sold 16,655 shares and insiders own about 0.35% of the stock.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) had its price target reduced by analysts at Morgan Stanley from $195.00 to $190.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm currently has an "equal weight" rating on the financial services provider's stock. Morgan Stanley's target price would suggest a potential upside of 8.06% from the stock's previous close.

A number of other equities analysts have also issued reports on MRSH. Royal Bank Of Canada restated a "sector perform" rating and set a $200.00 target price on shares of Marsh & McLennan Companies in a research report on Friday, January 30th. Evercore decreased their price objective on Marsh & McLennan Companies from $237.00 to $236.00 and set an "outperform" rating for the company in a research report on Wednesday, January 7th. Raymond James Financial upgraded shares of Marsh & McLennan Companies from an "outperform" rating to a "strong-buy" rating and set a $225.00 price objective on the stock in a research report on Tuesday, February 17th. Citigroup lifted their target price on shares of Marsh & McLennan Companies from $201.00 to $205.00 and gave the company a "neutral" rating in a report on Tuesday, February 3rd. Finally, JPMorgan Chase & Co. cut their price target on shares of Marsh & McLennan Companies from $242.00 to $226.00 and set an "overweight" rating for the company in a report on Wednesday, January 7th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $211.75.

Marsh & McLennan Companies Price Performance

Shares of NYSE MRSH traded up $1.23 during midday trading on Monday, hitting $175.84. The company's stock had a trading volume of 271,592 shares, compared to its average volume of 3,101,833. Marsh & McLennan Companies has a 1 year low of $164.89 and a 1 year high of $239.34. The company's fifty day moving average price is $175.70. The stock has a market capitalization of $85.13 billion, a price-to-earnings ratio of 20.86, a price-to-earnings-growth ratio of 2.38 and a beta of 0.75. The company has a debt-to-equity ratio of 1.20, a current ratio of 1.10 and a quick ratio of 1.10.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) last announced its quarterly earnings data on Thursday, January 29th. The financial services provider reported $2.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.97 by $0.15. The business had revenue of $6.60 billion during the quarter, compared to analysts' expectations of $6.52 billion. Marsh & McLennan Companies had a return on equity of 31.60% and a net margin of 15.42%.The business's quarterly revenue was up 8.7% compared to the same quarter last year. During the same quarter last year, the business posted $1.87 EPS. Analysts anticipate that Marsh & McLennan Companies will post 9.61 EPS for the current fiscal year.

Insider Buying and Selling at Marsh & McLennan Companies

In related news, CEO John Q. Doyle sold 16,655 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $183.30, for a total value of $3,052,861.50. Following the completion of the transaction, the chief executive officer directly owned 116,811 shares of the company's stock, valued at $21,411,456.30. This trade represents a 12.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.35% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Marsh & McLennan Companies

Several hedge funds have recently added to or reduced their stakes in MRSH. Pinnacle Bancorp Inc. purchased a new stake in Marsh & McLennan Companies in the 3rd quarter valued at approximately $25,000. Solstein Capital LLC acquired a new position in Marsh & McLennan Companies in the 4th quarter valued at about $25,000. SHP Wealth Management purchased a new position in Marsh & McLennan Companies in the 4th quarter valued at about $26,000. KERR FINANCIAL PLANNING Corp purchased a new stake in shares of Marsh & McLennan Companies during the fourth quarter worth about $27,000. Finally, Golden State Wealth Management LLC acquired a new stake in Marsh & McLennan Companies during the fourth quarter worth approximately $27,000. 87.99% of the stock is currently owned by hedge funds and other institutional investors.

About Marsh & McLennan Companies

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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