MSCI Inc (NYSE:MSCI) Receives Average Recommendation of "Buy" from Brokerages

Key Points

• Buy consensus from 11 analysts with a 12‑month average target of $692.70, implying roughly a 17% upside from current levels and supported by recent elevated targets (UBS $720, BofA $700).
• Q1 results beat estimates: EPS $4.55 vs. $4.38 and revenue $850.8M vs. $830.9M (revenue +14.1% YoY) with a 40.7% net margin, which helped lift the stock.
• The company announced a quarterly dividend of $2.05 (annualized $8.20; yield ~1.4%), and insiders showed confidence with CEO Henry Fernandez buying 800 shares while insiders own 3.76% of the stock.

Shares of MSCI Inc (NYSE:MSCI - Get Free Report) have received an average rating of "Buy" from the eleven ratings firms that are covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a hold recommendation, nine have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $692.70.

A number of analysts have recently weighed in on the stock. Bank of America assumed coverage on shares of MSCI in a research note on Tuesday, February 17th. They issued a "buy" rating and a $700.00 price objective on the stock. Royal Bank Of Canada reiterated an "outperform" rating and issued a $655.00 price objective on shares of MSCI in a research note on Wednesday. Evercore increased their price objective on shares of MSCI from $655.00 to $690.00 and gave the stock an "outperform" rating in a research note on Thursday, January 29th. Weiss Ratings upgraded shares of MSCI from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday. Finally, Wells Fargo & Company increased their price objective on shares of MSCI from $545.00 to $650.00 and gave the stock an "equal weight" rating in a research note on Wednesday.

Key Stories Impacting MSCI

Here are the key news stories impacting MSCI this week:

• Positive Sentiment: Q1 results beat expectations — MSCI reported stronger-than-expected Q1 revenue and earnings, which previously pushed the stock higher on improved fundamentals. MSCI Trading Up on Earnings
• Positive Sentiment: UBS raised its price target to $720 with a Buy rating — analysts now see ~20%+ upside from current levels, supporting a bullish medium-term case. UBS Raises Price Target
• Neutral Sentiment: Shareholder votes completed at the April 21 annual meeting — investors approved the board, pay plan and auditor, removing a governance overhang. Annual Meeting Results
• Neutral Sentiment: Positive longer-term research notes and coverage — Zacks and other outlets highlight MSCI as a strong long-term holding, reinforcing the company’s secular data/index/analytics story. Zacks: Top Stock for Long-Term
• Negative Sentiment: Macro/geopolitical weakness is pressuring markets — investor letters cite the Iran war and broader market declines (MSCI World and others), which can depress demand for index- and benchmarking-related flows. Fiduciary Management Q1 Letter
• Negative Sentiment: Index methodology / market-specific actions — MSCI extended a suspension related to Indonesian equities, creating near-term headline and regional flow uncertainty. MSCI Extends Indonesia Suspension

MSCI Trading Down 0.9%

Shares of MSCI stock opened at $592.33 on Friday. MSCI has a 12-month low of $501.08 and a 12-month high of $626.28. The firm has a market capitalization of $43.12 billion, a price-to-earnings ratio of 33.83, a PEG ratio of 2.26 and a beta of 1.30. The firm's 50 day simple moving average is $553.89 and its two-hundred day simple moving average is $562.41.

MSCI (NYSE:MSCI - Get Free Report) last released its quarterly earnings data on Tuesday, April 21st. The technology company reported $4.55 earnings per share for the quarter, topping analysts' consensus estimates of $4.38 by $0.17. The firm had revenue of $850.80 million for the quarter, compared to analyst estimates of $830.91 million. MSCI had a net margin of 40.74% and a negative return on equity of 65.48%. The business's quarterly revenue was up 14.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $4.00 earnings per share. On average, sell-side analysts predict that MSCI will post 19.55 EPS for the current fiscal year.

MSCI Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Friday, May 15th will be issued a dividend of $2.05 per share. The ex-dividend date of this dividend is Friday, May 15th. This represents a $8.20 dividend on an annualized basis and a yield of 1.4%. MSCI's dividend payout ratio is 46.83%.

Insiders Place Their Bets

In other news, CEO Henry A. Fernandez purchased 800 shares of the stock in a transaction that occurred on Tuesday, February 17th. The shares were purchased at an average cost of $518.95 per share, with a total value of $415,160.00. Following the completion of the acquisition, the chief executive officer owned 1,493,847 shares of the company's stock, valued at approximately $775,231,900.65. This represents a 0.05% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Andrew C. Wiechmann sold 450 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $560.00, for a total transaction of $252,000.00. Following the sale, the chief financial officer directly owned 22,544 shares in the company, valued at $12,624,640. This trade represents a 1.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 3.76% of the company's stock.

Institutional Trading of MSCI

A number of hedge funds have recently added to or reduced their stakes in the company. Keybank National Association OH boosted its holdings in MSCI by 5.2% during the first quarter. Keybank National Association OH now owns 2,148 shares of the technology company's stock worth $1,158,000 after buying an additional 107 shares in the last quarter. Root Financial Partners LLC boosted its holdings in MSCI by 286.0% during the first quarter. Root Financial Partners LLC now owns 220 shares of the technology company's stock worth $119,000 after buying an additional 163 shares in the last quarter. USS Investment Management Ltd boosted its holdings in MSCI by 3.8% during the first quarter. USS Investment Management Ltd now owns 13,876 shares of the technology company's stock worth $7,483,000 after buying an additional 505 shares in the last quarter. Premier Path Wealth Partners LLC grew its position in shares of MSCI by 61.6% in the first quarter. Premier Path Wealth Partners LLC now owns 769 shares of the technology company's stock valued at $415,000 after purchasing an additional 293 shares during the period. Finally, Mayflower Financial Advisors LLC grew its position in shares of MSCI by 11.0% in the first quarter. Mayflower Financial Advisors LLC now owns 454 shares of the technology company's stock valued at $245,000 after purchasing an additional 45 shares during the period. 89.97% of the stock is owned by hedge funds and other institutional investors.

About MSCI

MSCI Inc is a global provider of investment decision support tools and services for the financial industry. The company is best known for its family of market indexes, which are widely used as benchmarks by asset managers and as the basis for exchange-traded funds and other passive products. In addition to index construction and licensing, MSCI offers portfolio analytics, risk models, factor and performance attribution tools, and a suite of data and technology solutions designed to support portfolio management and trading.

Beyond traditional indexing and risk analytics, MSCI has expanded into environmental, social and governance (ESG) research and ratings, offering data, scores and screening tools that help investors integrate sustainability considerations into investment processes.

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