Morningstar (NASDAQ:MORN) Reaches New 12-Month Low - Should You Sell?

Key Points

• Morningstar's stock recently hit a new 52-week low, trading at $228.53, down from a previous close of $232.01.
• Wall Street Zen downgraded Morningstar from a "buy" to a "hold" rating, with a current consensus rating of "Moderate Buy" and an average target price of $361.67.
• Chairman Joseph D. Mansueto sold 6,705 shares of the company’s stock, indicating a 0.07% decrease in ownership, amid insider transactions totaling 85,500 shares worth over $22 million in the last quarter.

Morningstar, Inc. (NASDAQ:MORN - Get Free Report)'s share price hit a new 52-week low on Wednesday . The stock traded as low as $228.55 and last traded at $228.53, with a volume of 48346 shares traded. The stock had previously closed at $232.01.

Wall Street Analyst Weigh In

Separately, Wall Street Zen downgraded shares of Morningstar from a "buy" rating to a "hold" rating in a report on Saturday, July 5th. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, Morningstar currently has a consensus rating of "Moderate Buy" and an average target price of $361.67.

Morningstar Price Performance

The stock has a market cap of $9.61 billion, a price-to-earnings ratio of 24.27 and a beta of 1.01. The stock's 50 day moving average price is $257.54 and its two-hundred day moving average price is $282.52. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 0.52.

Morningstar (NASDAQ:MORN - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.21 by $0.19. Morningstar had a net margin of 17.22% and a return on equity of 23.54%. The firm had revenue of $605.10 million for the quarter, compared to the consensus estimate of $605.84 million.

Insider Transactions at Morningstar

In related news, Chairman Joseph D. Mansueto sold 6,705 shares of the stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $260.65, for a total transaction of $1,747,658.25. Following the sale, the chairman directly owned 9,312,836 shares of the company's stock, valued at approximately $2,427,390,703.40. This represents a 0.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders have sold 85,500 shares of company stock worth $22,341,957 over the last quarter. Corporate insiders own 36.20% of the company's stock.

Hedge Funds Weigh In On Morningstar

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MORN. Norges Bank purchased a new position in Morningstar during the second quarter valued at $93,224,000. AQR Capital Management LLC lifted its holdings in Morningstar by 691.0% during the second quarter. AQR Capital Management LLC now owns 293,969 shares of the business services provider's stock valued at $92,286,000 after purchasing an additional 256,806 shares in the last quarter. Millennium Management LLC lifted its holdings in Morningstar by 88.0% during the first quarter. Millennium Management LLC now owns 540,795 shares of the business services provider's stock valued at $162,168,000 after purchasing an additional 253,137 shares in the last quarter. Invesco Ltd. lifted its holdings in Morningstar by 266.5% during the second quarter. Invesco Ltd. now owns 280,923 shares of the business services provider's stock valued at $88,190,000 after purchasing an additional 204,277 shares in the last quarter. Finally, Amundi lifted its holdings in Morningstar by 22,716.4% during the second quarter. Amundi now owns 162,681 shares of the business services provider's stock valued at $50,512,000 after purchasing an additional 161,968 shares in the last quarter. 57.02% of the stock is owned by hedge funds and other institutional investors.

Morningstar Company Profile

Morningstar, Inc provides independent investment insights in the United States, Asia. Australia, Continental Europe, the United Kingdom, and internationally. The company operates in five segments: Morningstar Data and Analytics; PitchBook; Morningstar Wealth; Morningstar Credit; and Morningstar Retirement.

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