Morningstar (NASDAQ:MORN) Reaches New 12-Month Low - Time to Sell?

Key Points

• Morningstar, Inc. (NASDAQ:MORN) reached a new 52-week low, trading as low as $250.08 before closing at $250.75.
• Analyst ratings have shifted, with Wall Street Zen downgrading the stock from a "buy" to a "hold" rating, while it currently holds a consensus rating of "Moderate Buy" with an average target price of $361.67.
• Insider trading activity includes Chairman Joseph D. Mansueto selling 7,250 shares for approximately $1.86 million, indicating ongoing market adjustments.

Morningstar, Inc. (NASDAQ:MORN - Get Free Report)'s share price reached a new 52-week low on Wednesday . The stock traded as low as $250.08 and last traded at $250.75, with a volume of 154119 shares traded. The stock had previously closed at $257.63.

Analyst Upgrades and Downgrades

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

Morningstar Trading Down 2.4%

The company has a debt-to-equity ratio of 0.52, a current ratio of 1.13 and a quick ratio of 1.13. The firm has a market cap of $10.60 billion, a PE ratio of 26.77 and a beta of 1.01. The company's 50 day moving average price is $274.05 and its 200 day moving average price is $288.71.

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

Insider Activity

In other news, Chairman Joseph D. Mansueto sold 7,250 shares of the business's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $256.50, for a total transaction of $1,859,625.00. Following the completion of the transaction, the chairman owned 9,373,175 shares of the company's stock, valued at approximately $2,404,219,387.50. The trade was a 0.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Insiders have sold a total of 85,500 shares of company stock worth $22,341,957 over the last three months. Insiders own 36.20% of the company's stock.

Institutional Trading of Morningstar

A number of hedge funds have recently bought and sold shares of the company. Hughes Financial Services LLC bought a new position in Morningstar during the first quarter valued at approximately $25,000. Osterweis Capital Management Inc. acquired a new stake in shares of Morningstar during the 2nd quarter worth about $29,000. IFP Advisors Inc raised its position in Morningstar by 270.3% in the 2nd quarter. IFP Advisors Inc now owns 137 shares of the business services provider's stock valued at $43,000 after buying an additional 100 shares during the last quarter. Larson Financial Group LLC grew its stake in shares of Morningstar by 5,066.7% during the 1st quarter. Larson Financial Group LLC now owns 155 shares of the business services provider's stock worth $46,000 after acquiring an additional 152 shares during the period. Finally, MAI Capital Management raised its position in Morningstar by 37.8% in the first quarter. MAI Capital Management now owns 153 shares of the business services provider's stock worth $46,000 after acquiring an additional 42 shares during the period. 57.02% of the stock is owned by hedge funds and other institutional investors.

About Morningstar

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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