Marsh & McLennan Companies (NYSE:MRSH) Hits New 1-Year High - What's Next?

Key Points

• Marsh & McLennan shares reached a new 52-week high, trading as high as $199.59 and gaining 4.6%. The stock’s consensus analyst rating remains “Hold,” with an average price target of $204.42.
• The company exceeded quarterly earnings expectations, reporting $2.03 in adjusted EPS versus the $1.96 consensus estimate, while revenue rose 8.1% year over year to $6.86 billion.
• Marsh & McLennan declared a quarterly dividend of $0.99 per share, equivalent to an annualized $3.96 payout and a 2.0% yield. Institutional investors own nearly 88% of the company, while recent insider activity primarily involved stock sales.

Marsh & McLennan Companies, Inc. (NYSE:MRSH - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Thursday. The company traded as high as $199.59 and last traded at $199.2440, with a volume of 3,054,195 shares. The stock had previously closed at $190.56.

Wall Street Analyst Weigh In

MRSH has been the topic of several research reports. Mizuho increased their price objective on shares of Marsh & McLennan Companies from $190.00 to $200.00 and gave the stock a "neutral" rating in a research note on Monday. BMO Capital Markets decreased their target price on Marsh & McLennan Companies from $203.00 to $179.00 and set a "market perform" rating for the company in a research note on Thursday, October 1st. Weiss Ratings raised Marsh & McLennan Companies from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, August 7th. The Goldman Sachs Group dropped their price target on Marsh & McLennan Companies from $197.00 to $191.00 and set a "neutral" rating on the stock in a research report on Thursday, October 1st. Finally, Keefe, Bruyette & Woods raised their price target on Marsh & McLennan Companies from $186.00 to $201.00 and gave the stock a "market perform" rating in a report on Monday. Two research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $204.42.

Marsh & McLennan Companies Trading Up 4.6%

The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 1.27. The company has a market cap of $94.74 billion, a price-to-earnings ratio of 23.83, a price-to-earnings-growth ratio of 2.65 and a beta of 0.59. The firm's 50-day simple moving average is $181.40.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) last posted its quarterly earnings results on Thursday, October 15th. The financial services provider reported $2.03 earnings per share for the quarter, beating the consensus estimate of $1.96 by $0.07. The firm had revenue of $6.86 billion for the quarter. Marsh & McLennan Companies had a return on equity of 33.32% and a net margin of 14.20%. Marsh & McLennan Companies's revenue for the quarter was up 8.1% compared to the same quarter last year. Sell-side analysts expect that Marsh & McLennan Companies, Inc. will post 10.46 EPS for the current fiscal year.

Marsh & McLennan Companies Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Thursday, October 1st will be issued a dividend of $0.99 per share. This represents a $3.96 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date is Thursday, October 1st. Marsh & McLennan Companies's dividend payout ratio is 47.37%.

Insider Buying and Selling

In related news, SVP Paul Beswick sold 713 shares of the company's stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $198.00, for a total value of $141,174.00. Following the completion of the transaction, the senior vice president directly owned 16,376 shares in the company, valued at approximately $3,242,448. This represents a 4.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Martin South sold 7,100 shares of the stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $189.99, for a total transaction of $1,348,929.00. Following the completion of the transaction, the insider owned 16,632 shares of the company's stock, valued at approximately $3,159,913.68. This represents a 29.92% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.38% of the company's stock.

Institutional Investors Weigh In On Marsh & McLennan Companies

A number of hedge funds have recently made changes to their positions in the company. Quadrant Capital Group LLC grew its holdings in shares of Marsh & McLennan Companies by 0.6% during the third quarter. Quadrant Capital Group LLC now owns 9,612 shares of the financial services provider's stock worth $1,701,000 after purchasing an additional 53 shares during the last quarter. Pinnacle Bancorp Inc. raised its holdings in shares of Marsh & McLennan Companies by 37.7% in the third quarter. Pinnacle Bancorp Inc. now owns 219 shares of the financial services provider's stock valued at $37,000 after buying an additional 60 shares during the last quarter. Continuum Advisory LLC lifted its position in Marsh & McLennan Companies by 5.3% during the 1st quarter. Continuum Advisory LLC now owns 1,452 shares of the financial services provider's stock worth $252,000 after buying an additional 73 shares in the last quarter. Clearstead Trust LLC lifted its position in Marsh & McLennan Companies by 12.6% during the 1st quarter. Clearstead Trust LLC now owns 668 shares of the financial services provider's stock worth $116,000 after buying an additional 75 shares in the last quarter. Finally, Kintegral Advisory LLC grew its holdings in Marsh & McLennan Companies by 0.6% during the 3rd quarter. Kintegral Advisory LLC now owns 14,387 shares of the financial services provider's stock worth $2,456,000 after acquiring an additional 81 shares during the last quarter. Institutional investors and hedge funds own 87.99% of the company's stock.

About Marsh & McLennan Companies

Marsh & McLennan Companies is a global professional services firm that provides advice and solutions in risk, strategy and people. The company serves businesses, governments and institutions through a portfolio of specialized businesses focused on insurance brokerage, reinsurance, consulting and talent management.

Its principal businesses include Marsh, an insurance brokerage and risk advisory firm; Guy Carpenter, a provider of reinsurance brokerage and related risk-management services; Mercer, which offers consulting in investment, retirement, health and workforce strategy; and Oliver Wyman, a management consulting firm serving clients across industries and regions.

Founded in 1905, Marsh & McLennan serves clients in countries and markets around the world.

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