Morningstar (NASDAQ:MORN) Hits New 12-Month High - What's Next?

Key Points

• Morningstar shares reached a new 52-week high, trading as high as $226.86 and last changing hands at $224.14. The stock’s 50-day and 200-day moving averages were $205.72 and $186.16, respectively.
• Analyst sentiment remains favorable, with Morningstar holding a consensus “Moderate Buy” rating and an average price target of $235.67; BMO Capital Markets recently raised its target to $237.
• Morningstar exceeded quarterly expectations, reporting $3.48 in EPS versus the $3.04 consensus and revenue of $672.10 million versus estimates of $664.75 million. Institutional investors own 57.02% of the company, while insiders have sold shares in recent months.

Shares of Morningstar, Inc. (NASDAQ:MORN - Get Free Report) reached a new 52-week high on Friday. The stock traded as high as $226.86 and last traded at $224.14, with a volume of 7,981 shares traded. The stock had previously closed at $222.54.

Analyst Upgrades and Downgrades

A number of research firms have commented on MORN. BMO Capital Markets boosted their price target on shares of Morningstar from $230.00 to $237.00 and gave the stock an "outperform" rating in a research report on Tuesday, October 13th. Wall Street Zen raised shares of Morningstar from a "hold" rating to a "buy" rating in a research note on Saturday, September 26th. UBS Group dropped their target price on Morningstar from $280.00 to $260.00 and set a "buy" rating on the stock in a report on Tuesday, July 7th. Finally, Weiss Ratings raised Morningstar from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, October 9th. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, Morningstar has an average rating of "Moderate Buy" and a consensus target price of $235.67.

Morningstar Price Performance

The business has a fifty day simple moving average of $205.72 and a 200-day simple moving average of $186.16. The company has a debt-to-equity ratio of 1.66, a quick ratio of 1.06 and a current ratio of 1.06. The stock has a market capitalization of $8.42 billion, a P/E ratio of 19.58 and a beta of 1.02.

Morningstar (NASDAQ:MORN - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The business services provider reported $3.48 EPS for the quarter, topping the consensus estimate of $3.04 by $0.44. The firm had revenue of $672.10 million during the quarter, compared to analyst estimates of $664.75 million. Morningstar had a net margin of 17.00% and a return on equity of 44.52%.

Insider Buying and Selling at Morningstar

In other news, Chairman Joseph Mansueto sold 7,906 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $210.26, for a total transaction of $1,662,315.56. Following the completion of the sale, the chairman owned 7,960,570 shares in the company, valued at $1,673,789,448.20. This trade represents a 0.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 86,500 shares of company stock worth $17,824,451 over the last 90 days. 38.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Callan Family Office LLC acquired a new position in Morningstar during the second quarter valued at $846,000. Bank of America Corp DE lifted its position in Morningstar by 11.7% during the 1st quarter. Bank of America Corp DE now owns 183,575 shares of the business services provider's stock valued at $31,033,000 after purchasing an additional 19,264 shares during the period. Public Employees Retirement System of Ohio bought a new position in Morningstar during the second quarter worth about $903,000. Engineers Gate Manager LP boosted its stake in Morningstar by 182.2% in the 2nd quarter. Engineers Gate Manager LP now owns 39,989 shares of the business services provider's stock worth $6,239,000 after purchasing an additional 25,817 shares during the period. Finally, Fluent Financial LLC increased its position in shares of Morningstar by 150.0% in the second quarter. Fluent Financial LLC now owns 14,362 shares of the business services provider's stock valued at $2,241,000 after acquiring an additional 8,618 shares during the last quarter. Hedge funds and other institutional investors own 57.02% of the company's stock.

About Morningstar

Morningstar, Inc is a global provider of independent investment research, data, and financial technology. The company serves asset managers, financial advisors, institutions, retirement plans, and individual investors with information designed to support investment analysis and decision-making.

Its products and services include research and ratings on mutual funds, exchange-traded funds, stocks, bonds, and other investments; portfolio analysis and planning tools; investment-management and advisory services; and software and data solutions for financial professionals and institutions.

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