Marsh & McLennan Companies (NYSE:MRSH) Reaches New 12-Month High - Still a Buy?

Key Points

• Marsh & McLennan shares reached a new 52-week high, trading as high as $202.18 and closing near $200, supported by strong recent performance.
• The company exceeded quarterly earnings expectations, reporting $2.03 EPS versus a $1.96 estimate, while revenue rose 8.1% year over year to $6.86 billion.
• Analyst sentiment remains mixed: the stock has an average rating of “Hold” and an average price target of $204.42. Marsh & McLennan also announced a quarterly dividend of $0.99 per share, representing a 2.0% yield.

Marsh & McLennan Companies, Inc. (NYSE:MRSH - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Friday. The stock traded as high as $202.18 and last traded at $200.6620, with a volume of 131,933 shares traded. The stock had previously closed at $197.03.

Wall Street Analysts Forecast Growth

MRSH has been the topic of a number of research analyst reports. Evercore decreased their target price on Marsh & McLennan Companies from $234.00 to $224.00 in a research report on Thursday, October 8th. JPMorgan Chase & Co. boosted their price objective on shares of Marsh & McLennan Companies from $215.00 to $218.00 and gave the company an "overweight" rating in a research note on Tuesday, October 20th. The Goldman Sachs Group reduced their price objective on Marsh & McLennan Companies from $197.00 to $191.00 and set a "neutral" rating on the stock in a research note on Thursday, October 1st. Erste Group Bank raised Marsh & McLennan Companies to a "strong-buy" rating in a research report on Tuesday, September 8th. Finally, UBS Group boosted their price target on Marsh & McLennan Companies from $216.00 to $222.00 and gave the stock a "buy" rating in a research report on Tuesday, October 6th. Two investment analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Marsh & McLennan Companies presently has an average rating of "Hold" and an average price target of $204.42.

Marsh & McLennan Companies Trading Up 1.8%

The company's fifty day moving average price is $182.17. The stock has a market cap of $95.36 billion, a price-to-earnings ratio of 23.87, a price-to-earnings-growth ratio of 2.60 and a beta of 0.59. The company has a debt-to-equity ratio of 1.27, a current ratio of 1.09 and a quick ratio of 1.09.

Marsh & McLennan Companies (NYSE:MRSH - Get Free Report) last released its earnings results on Thursday, October 15th. The financial services provider reported $2.03 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.96 by $0.07. Marsh & McLennan Companies had a return on equity of 33.32% and a net margin of 14.20%. The firm had revenue of $6.86 billion for the quarter. The firm's quarterly revenue was up 8.1% on a year-over-year basis. As a group, sell-side analysts predict that Marsh & McLennan Companies, Inc. will post 10.48 EPS for the current fiscal year.

Marsh & McLennan Companies Dividend Announcement

The business also recently announced 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 annualized dividend and a yield of 2.0%. The ex-dividend date is Thursday, October 1st. Marsh & McLennan Companies's dividend payout ratio (DPR) is 47.37%.

Insider Activity

In related news, VP Stacy Mills sold 1,215 shares of the firm's stock in a transaction dated Friday, October 23rd. The stock was sold at an average price of $200.00, for a total value of $243,000.00. Following the sale, the vice president directly owned 2,705 shares of the company's stock, valued at $541,000. This trade represents a 30.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Dean Klisura sold 4,194 shares of Marsh & McLennan Companies stock in a transaction that occurred on Friday, October 23rd. The stock was sold at an average price of $200.00, for a total transaction of $838,800.00. Following the sale, the chief executive officer owned 20,935 shares in the company, valued at approximately $4,187,000. This represents a 16.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.38% of the company's stock.

Hedge Funds Weigh In On Marsh & McLennan Companies

A number of large investors have recently modified their holdings of MRSH. Integrity Alliance LLC. increased its holdings in Marsh & McLennan Companies by 8.1% in the 3rd quarter. Integrity Alliance LLC. now owns 6,335 shares of the financial services provider's stock valued at $1,082,000 after acquiring an additional 477 shares during the last quarter. Eads & Heald Wealth Management grew its position in shares of Marsh & McLennan Companies by 7.4% during the third quarter. Eads & Heald Wealth Management now owns 2,166 shares of the financial services provider's stock valued at $370,000 after purchasing an additional 150 shares in the last quarter. Gerber Kawasaki Wealth & Investment Management purchased a new position in shares of Marsh & McLennan Companies during the third quarter valued at about $246,000. Capital Management Corp VA increased its holdings in shares of Marsh & McLennan Companies by 2.0% in the third quarter. Capital Management Corp VA now owns 41,161 shares of the financial services provider's stock worth $7,027,000 after purchasing an additional 815 shares during the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of Marsh & McLennan Companies in the third quarter worth about $20,477,000. 87.99% of the stock is currently owned by institutional investors.

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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