Morningstar (NASDAQ:MORN) Stock Price Down 4.3% - Time to Sell?

Key Points

• Morningstar shares fell 4.3% to $238.23, down from a previous close of $248.92, with trading volume decreasing by 2% from the average.
• Wall Street analysts downgraded Morningstar from a "buy" to a "hold" rating, with a consensus price target of $361.67.
• Morningstar reported earnings of $2.40 per share, exceeding estimates, but revenue fell slightly short of expectations at $605.10 million.

Morningstar, Inc. (NASDAQ:MORN - Get Free Report) shares were down 4.3% during mid-day trading on Thursday . The stock traded as low as $239.00 and last traded at $238.23. Approximately 232,734 shares were traded during mid-day trading, a decline of 2% from the average daily volume of 238,468 shares. The stock had previously closed at $248.92.

Analyst Upgrades and Downgrades

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

Morningstar Stock Up 0.6%

The company has a fifty day simple moving average of $264.94 and a 200-day simple moving average of $285.10. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 0.52. The firm has a market cap of $9.92 billion, a P/E ratio of 25.04 and a beta of 1.01.

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

Insider Buying and Selling at Morningstar

In other news, Chairman Joseph D. Mansueto sold 7,250 shares of the company's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $256.50, for a total value 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 $2,404,219,387.50. This represents a 0.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders sold a total of 85,500 shares of company stock valued at $22,341,957 over the last three months. Corporate insiders own 36.20% of the company's stock.

Hedge Funds Weigh In On Morningstar

A number of hedge funds have recently made changes to their positions in MORN. Norges Bank bought a new position in shares of Morningstar in the second quarter worth about $93,224,000. AQR Capital Management LLC boosted its stake in shares of Morningstar by 691.0% in the second quarter. AQR Capital Management LLC now owns 293,969 shares of the business services provider's stock worth $92,286,000 after acquiring an additional 256,806 shares during the period. Millennium Management LLC boosted its stake in shares of Morningstar by 88.0% in the first quarter. Millennium Management LLC now owns 540,795 shares of the business services provider's stock worth $162,168,000 after acquiring an additional 253,137 shares during the period. Invesco Ltd. boosted its stake in shares of Morningstar by 266.5% in the second quarter. Invesco Ltd. now owns 280,923 shares of the business services provider's stock worth $88,190,000 after acquiring an additional 204,277 shares during the period. Finally, Amundi boosted its stake in shares of Morningstar by 22,716.4% in the second quarter. Amundi now owns 162,681 shares of the business services provider's stock worth $50,512,000 after acquiring an additional 161,968 shares during the period. Institutional investors own 57.02% of the company's stock.

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.