Marsh & McLennan Companies (NYSE:MRSH) Sets New 1-Year High - Here's Why

Key Points

• Marsh & McLennan shares hit a new 52-week high, trading as high as $213.89, above the prior close of $210.38.
• The company beat quarterly earnings estimates, reporting $2.03 per share versus the $1.96 consensus, while revenue rose 8.1% year over year to $6.86 billion.
• Analyst views remain mixed: BMO upgraded the stock to “outperform,” but the overall consensus rating was “Hold.” The company also announced a quarterly dividend of $0.99 per share.

Marsh & McLennan Companies, Inc. (NYSE:MRSH - Get Free Report)'s share price reached a new 52-week high during trading on Thursday. The stock traded as high as $213.89 and last traded at $212.1420, with a volume of 2,797 shares traded. The stock had previously closed at $210.38.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on MRSH. BMO Capital Markets raised Marsh & McLennan Companies from a "market perform" rating to an "outperform" rating and raised their price objective for the company from $204.00 to $230.00 in a research note on Tuesday. Weiss Ratings raised Marsh & McLennan Companies from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, August 7th. Cantor Fitzgerald increased their price target on Marsh & McLennan Companies from $212.00 to $218.00 and gave the company an "overweight" rating in a report on Tuesday, July 21st. Evercore dropped their price target on shares of Marsh & McLennan Companies from $234.00 to $224.00 in a research report on Thursday, October 8th. Finally, Mizuho lifted their price target on shares of Marsh & McLennan Companies from $190.00 to $200.00 and gave the company a "neutral" rating in a research report on Monday, October 19th. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $205.84.

Marsh & McLennan Companies Stock Up 1.4%

The firm's 50-day moving average is $183.16. The firm has a market capitalization of $101.46 billion, a P/E ratio of 25.47, a P/E/G ratio of 2.75 and a beta of 0.53. 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 issued its quarterly earnings results on Thursday, October 15th. The financial services provider reported $2.03 earnings per share for the quarter, beating analysts' consensus estimates of $1.96 by $0.07. The firm had revenue of $6.86 billion during the quarter. Marsh & McLennan Companies had a net margin of 14.20% and a return on equity of 33.32%. Marsh & McLennan Companies's revenue was up 8.1% on a year-over-year basis. On average, analysts predict that Marsh & McLennan Companies, Inc. will post 10.48 EPS for the current fiscal year.

Marsh & McLennan Companies Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Thursday, October 1st will be given a dividend of $0.99 per share. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $3.96 dividend on an annualized basis and a yield of 1.9%. Marsh & McLennan Companies's dividend payout ratio (DPR) is 47.37%.

Insider Activity

In other news, VP Stacy Mills sold 1,215 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 $243,000.00. Following the sale, the vice president owned 2,705 shares of the company's stock, valued at approximately $541,000. This trade represents a 30.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 the business's stock in a transaction that occurred on Friday, October 23rd. The shares were sold at an average price of $200.00, for a total value 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. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.38% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Asset Dedication LLC acquired a new stake in Marsh & McLennan Companies in the first quarter valued at about $25,000. Quest 10 Wealth Builders Inc. raised its position in shares of Marsh & McLennan Companies by 95.0% during the third quarter. Quest 10 Wealth Builders Inc. now owns 156 shares of the financial services provider's stock worth $27,000 after acquiring an additional 76 shares during the last quarter. EFG International AG acquired a new position in shares of Marsh & McLennan Companies in the 2nd quarter worth approximately $30,000. Bell Investment Advisors Inc bought a new stake in Marsh & McLennan Companies during the second quarter valued at $31,000. Finally, Gen Wealth Partners Inc bought a new stake in shares of Marsh & McLennan Companies during the 3rd quarter valued at about $33,000. 87.99% of the stock is 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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