Marsh & McLennan Companies (NYSE:MMC) Shares Gap Up on Strong Earnings

Marsh & McLennan Companies, Inc. (NYSE:MMC - Get Free Report) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $197.62, but opened at $205.98. Marsh & McLennan Companies shares last traded at $204.26, with a volume of 329,397 shares changing hands.

The financial services provider reported $2.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.80 by $0.09. The business had revenue of $6.50 billion during the quarter, compared to analysts' expectations of $6.38 billion. Marsh & McLennan Companies had a net margin of 16.52% and a return on equity of 33.72%. The business's revenue was up 9.7% on a year-over-year basis. During the same period last year, the firm posted $2.53 earnings per share.

Marsh & McLennan Companies Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 15th. Stockholders of record on Thursday, April 4th will be issued a $0.71 dividend. This represents a $2.84 annualized dividend and a dividend yield of 1.41%. The ex-dividend date of this dividend is Wednesday, April 3rd. Marsh & McLennan Companies's dividend payout ratio (DPR) is presently 37.72%.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. TD Cowen assumed coverage on shares of Marsh & McLennan Companies in a research note on Wednesday, January 10th. They set a "market perform" rating and a $189.00 target price for the company. Keefe, Bruyette & Woods increased their target price on shares of Marsh & McLennan Companies from $185.00 to $188.00 and gave the company an "underperform" rating in a research note on Wednesday, April 10th. Evercore ISI increased their target price on shares of Marsh & McLennan Companies from $212.00 to $218.00 and gave the company an "outperform" rating in a research note on Thursday, April 11th. JPMorgan Chase & Co. increased their target price on shares of Marsh & McLennan Companies from $190.00 to $198.00 and gave the company a "neutral" rating in a research note on Monday, April 8th. Finally, The Goldman Sachs Group downgraded shares of Marsh & McLennan Companies from a "buy" rating to a "sell" rating and reduced their price target for the company from $215.00 to $185.00 in a research report on Monday, January 8th. Two research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and three have given a buy rating to the company. Based on data from MarketBeat.com, Marsh & McLennan Companies has a consensus rating of "Hold" and a consensus price target of $204.73.

Insider Buying and Selling at Marsh & McLennan Companies

In other Marsh & McLennan Companies news, VP Stacy Mills sold 1,461 shares of the company's stock in a transaction that occurred on Thursday, March 14th. The shares were sold at an average price of $209.16, for a total value of $305,582.76. Following the transaction, the vice president now owns 2,923 shares in the company, valued at approximately $611,374.68. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. In other news, VP Stacy Mills sold 1,461 shares of the firm's stock in a transaction on Thursday, March 14th. The shares were sold at an average price of $209.16, for a total transaction of $305,582.76. Following the transaction, the vice president now owns 2,923 shares in the company, valued at approximately $611,374.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Martine Ferland sold 9,128 shares of the firm's stock in a transaction on Tuesday, March 5th. The shares were sold at an average price of $201.63, for a total transaction of $1,840,478.64. Following the transaction, the chief executive officer now owns 9,979 shares in the company, valued at approximately $2,012,065.77. The disclosure for this sale can be found here. In the last quarter, insiders have sold 36,751 shares of company stock worth $7,448,163. 0.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Markel Corp raised its holdings in Marsh & McLennan Companies by 1.5% in the 1st quarter. Markel Corp now owns 618,800 shares of the financial services provider's stock worth $105,456,000 after acquiring an additional 9,300 shares during the period. United Bank raised its holdings in Marsh & McLennan Companies by 1.9% in the 1st quarter. United Bank now owns 7,580 shares of the financial services provider's stock worth $1,292,000 after acquiring an additional 144 shares during the period. Blair William & Co. IL raised its holdings in Marsh & McLennan Companies by 1.9% in the 1st quarter. Blair William & Co. IL now owns 37,526 shares of the financial services provider's stock worth $6,395,000 after acquiring an additional 695 shares during the period. Cetera Investment Advisers raised its holdings in Marsh & McLennan Companies by 43.9% in the 1st quarter. Cetera Investment Advisers now owns 4,188 shares of the financial services provider's stock worth $714,000 after acquiring an additional 1,277 shares during the period. Finally, Moors & Cabot Inc. raised its holdings in Marsh & McLennan Companies by 8.5% in the 1st quarter. Moors & Cabot Inc. now owns 3,066 shares of the financial services provider's stock worth $523,000 after acquiring an additional 241 shares during the period. Institutional investors own 87.99% of the company's stock.

Marsh & McLennan Companies Stock Up 2.0 %

The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 0.96. The stock has a market cap of $99.52 billion, a P/E ratio of 26.24, a P/E/G ratio of 3.56 and a beta of 0.90. The firm's fifty day moving average is $202.67 and its 200 day moving average is $196.69.

About Marsh & McLennan Companies

Marsh & McLennan Companies, Inc, a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. It operates through Risk and Insurance Services, and Consulting segments. The Risk and Insurance Services segment offers risk management services, such as risk advice, risk transfer, and risk control and mitigation solutions, as well as insurance and reinsurance broking, strategic advisory services, and analytics solutions, and insurance program management services.