Morningstar (NASDAQ:MORN) Releases Quarterly Earnings Results, Beats Estimates By $0.53 EPS

Key Points

• Morningstar beat estimates: Q1 EPS was $3.18 versus the $2.65 consensus (beat by $0.53) and revenue was $644.8M versus $625.6M, with a 27.9% ROE and a 15.3% net margin.
• Stock moved higher on the results: shares rose to $187.60 on above-average volume (753,035 vs. avg. 551,495); market cap is ~$7.23B and the stock trades at a P/E of 21.06 (12‑month range $149.08–$316.71).
• Insider and analyst activity is mixed: Chairman Joseph Mansueto sold 7,304 shares (insiders still own 38.8%), while analysts have issued downgrades and divergent price targets, leaving an average rating of “Hold” with a $236.50 target.

Morningstar (NASDAQ:MORN - Get Free Report) issued its quarterly earnings results on Wednesday. The business services provider reported $3.18 earnings per share for the quarter, beating the consensus estimate of $2.65 by $0.53, FiscalAI reports. Morningstar had a return on equity of 27.94% and a net margin of 15.30%.The firm had revenue of $644.80 million during the quarter, compared to the consensus estimate of $625.62 million.

Morningstar Stock Performance

NASDAQ MORN traded up $3.87 during trading hours on Wednesday, hitting $187.60. The company's stock had a trading volume of 753,035 shares, compared to its average volume of 551,495. Morningstar has a 12 month low of $149.08 and a 12 month high of $316.71. The company's 50 day simple moving average is $176.07 and its two-hundred day simple moving average is $196.87. The company has a market cap of $7.23 billion, a P/E ratio of 21.06 and a beta of 1.11. The company has a debt-to-equity ratio of 0.88, a current ratio of 0.99 and a quick ratio of 0.99.

Insider Transactions at Morningstar

In other Morningstar news, Chairman Joseph D. Mansueto sold 7,304 shares of the firm's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $160.63, for a total value of $1,173,241.52. Following the transaction, the chairman directly owned 8,184,212 shares of the company's stock, valued at approximately $1,314,629,973.56. This trade represents a 0.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders sold 84,643 shares of company stock valued at $14,088,066 over the last 90 days. Company insiders own 38.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Osterweis Capital Management Inc. purchased a new position in Morningstar in the second quarter worth about $29,000. Measured Wealth Private Client Group LLC purchased a new position in Morningstar in the third quarter worth about $26,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Morningstar by 23.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 178 shares of the business services provider's stock worth $53,000 after purchasing an additional 34 shares during the last quarter. Quarry LP boosted its position in Morningstar by 51.2% in the fourth quarter. Quarry LP now owns 189 shares of the business services provider's stock worth $41,000 after purchasing an additional 64 shares during the last quarter. Finally, Geneos Wealth Management Inc. boosted its position in Morningstar by 278.2% in the first quarter. Geneos Wealth Management Inc. now owns 208 shares of the business services provider's stock worth $62,000 after purchasing an additional 153 shares during the last quarter. 57.02% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Weiss Ratings downgraded Morningstar from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, April 9th. Wall Street Zen downgraded Morningstar from a "buy" rating to a "hold" rating in a report on Saturday, April 18th. UBS Group set a $280.00 price objective on Morningstar in a report on Friday, February 13th. Finally, BMO Capital Markets reduced their price objective on Morningstar from $257.00 to $193.00 and set an "outperform" rating for the company in a report on Tuesday, February 17th. Two research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $236.50.

Morningstar Company Profile

Morningstar, Inc is a leading provider of independent investment research, data, and analytics, serving both individual investors and financial professionals. The company offers comprehensive coverage of financial products, including mutual funds, exchange-traded funds (ETFs), stocks, bonds and market indexes. Morningstar's proprietary rating systems and research methodologies help clients assess the risk and return profiles of investment opportunities and make informed decisions.

Its core products include Morningstar Direct, an institutional investment analysis platform; Morningstar Office Cloud, a portfolio management solution for advisors; and Morningstar Data, which delivers extensive datasets through APIs and data feeds.

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