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

Key Points

• Analysts have a consensus rating of "Moderate Buy" on MSCI from 11 firms (9 Buys, 2 Holds) with an average 12‑month price target of about $671.78, including Bank of America at $700 and UBS at $638.
• MSCI beat quarterly EPS estimates ($4.66 vs. $4.62) with revenue up 10.6% year‑over‑year, and the company raised its quarterly dividend to $2.05 (annualized $8.20) for a ~1.4% yield.

MSCI Inc (NYSE:MSCI - Get Free Report) has earned a consensus rating of "Moderate Buy" from the eleven ratings firms that are currently covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation and nine have given a buy recommendation to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $671.7778.

A number of analysts have weighed in on the stock. Barclays restated an "overweight" rating on shares of MSCI in a research note on Thursday, January 29th. Royal Bank Of Canada reissued an "outperform" rating and set a $655.00 price target on shares of MSCI in a research report on Thursday, January 29th. Weiss Ratings raised MSCI from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, February 26th. UBS Group set a $638.00 target price on MSCI in a report on Wednesday, January 28th. Finally, Bank of America assumed coverage on MSCI in a report on Tuesday, February 17th. They set a "buy" rating and a $700.00 price target on the stock.

MSCI Stock Down 1.2%

MSCI stock opened at $565.53 on Friday. The business has a 50 day moving average of $571.59 and a 200 day moving average of $565.53. The firm has a market cap of $41.55 billion, a PE ratio of 36.04, a price-to-earnings-growth ratio of 2.33 and a beta of 1.29. MSCI has a twelve month low of $486.73 and a twelve month high of $626.28.

MSCI (NYSE:MSCI - Get Free Report) last released its earnings results on Wednesday, January 28th. The technology company reported $4.66 EPS for the quarter, topping analysts' consensus estimates of $4.62 by $0.04. MSCI had a negative return on equity of 82.59% and a net margin of 38.36%.The firm had revenue of $822.53 million for the quarter, compared to analysts' expectations of $819.51 million. During the same period in the prior year, the firm posted $4.18 earnings per share. The company's quarterly revenue was up 10.6% on a year-over-year basis. On average, research analysts expect that MSCI will post 16.86 earnings per share for the current fiscal year.

MSCI Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Friday, February 13th were paid a dividend of $2.05 per share. The ex-dividend date was Friday, February 13th. This represents a $8.20 annualized dividend and a yield of 1.4%. This is an increase from MSCI's previous quarterly dividend of $1.80. MSCI's dividend payout ratio (DPR) is currently 52.26%.

Insider Transactions at MSCI

In other news, CFO Andrew C. Wiechmann sold 450 shares of MSCI stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $550.00, for a total value of $247,500.00. Following the completion of the sale, the chief financial officer directly owned 21,639 shares in the company, valued at $11,901,450. The trade was a 2.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Henry A. Fernandez acquired 800 shares of the firm's stock in a transaction dated Tuesday, February 17th. The shares were bought 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 directly owned 1,493,847 shares of the company's stock, valued at $775,231,900.65. The trade was a 0.05% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 3.31% of the company's stock.

Hedge Funds Weigh In On MSCI

Hedge funds and other institutional investors have recently modified their holdings of the company. SHP Wealth Management purchased a new stake in MSCI during the fourth quarter valued at $36,000. Midway Capital Research & Management purchased a new position in MSCI in the fourth quarter worth about $2,130,000. Reflection Asset Management purchased a new position in MSCI in the fourth quarter worth about $730,000. MidFirst Bank bought a new stake in shares of MSCI during the 4th quarter valued at about $803,000. Finally, MV Capital Management Inc. purchased a new stake in shares of MSCI during the 4th quarter valued at about $2,355,000. 89.97% of the stock is owned by institutional investors.

MSCI Company Profile

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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