Morningstar (NASDAQ:MORN) Stock Price Up 4.6% - Time to Buy?

Key Points

• Morningstar shares rose 4.6% to about $204.77, though trading volume was 68% below the daily average. The stock’s market capitalization was approximately $7.64 billion, with a P/E ratio of 19.33.
• Analysts maintain a generally positive outlook, with an average rating of “Moderate Buy” and an average price target of $227.33. Recent targets range from $210 to $260.
• Morningstar exceeded quarterly expectations, reporting $3.10 in EPS versus the $2.83 consensus and revenue of $663.2 million versus $649.72 million expected. Institutional investors own 57.02% of the company, while insiders have recently sold shares.

Morningstar, Inc. (NASDAQ:MORN - Get Free Report) shares rose 4.6% during trading on Wednesday. The stock traded as high as $202.51 and last traded at $204.7650. 149,433 shares traded hands during mid-day trading, a decline of 68% from the average daily volume of 473,123 shares. The stock had previously closed at $195.69.

Analysts Set New Price Targets

A number of equities analysts have commented on the company. Rothschild & Co Redburn set a $210.00 price target on Morningstar in a research note on Thursday, June 18th. BMO Capital Markets reissued an "outperform" rating and set a $212.00 price target on shares of Morningstar in a research report on Friday, June 26th. Weiss Ratings upgraded shares of Morningstar from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, August 14th. UBS Group dropped their price target on shares of Morningstar from $280.00 to $260.00 and set a "buy" rating on the stock in a report on Tuesday, July 7th. Finally, Wall Street Zen upgraded Morningstar from a "hold" rating to a "buy" rating in a research note on Saturday, September 26th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, Morningstar presently has an average rating of "Moderate Buy" and an average target price of $227.33.

Morningstar Trading Up 4.1%

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 cap of $7.64 billion, a PE ratio of 19.33 and a beta of 1.02. The stock has a fifty day moving average price of $202.36 and a 200 day moving average price of $182.97.

Morningstar (NASDAQ:MORN - Get Free Report) last released its earnings results on Wednesday, July 29th. The business services provider reported $3.10 EPS for the quarter, beating analysts' consensus estimates of $2.83 by $0.27. Morningstar had a return on equity of 38.57% and a net margin of 16.43%.The firm had revenue of $663.20 million for the quarter, compared to analysts' expectations of $649.72 million.

Insider Buying and Selling

In other news, Chairman Joseph Mansueto sold 7,906 shares of Morningstar stock in a transaction on Tuesday, August 18th. The stock was 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 directly owned 7,960,570 shares in the company, valued at approximately $1,673,789,448.20. This trade represents a 0.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 86,500 shares of company stock valued at $17,824,451. Corporate insiders own 38.80% of the company's stock.

Hedge Funds Weigh In On Morningstar

Institutional investors have recently modified their holdings of the stock. Bamco Inc. NY purchased a new position in Morningstar during the 2nd quarter worth $545,937,000. BlackRock Inc. bought a new stake in shares of Morningstar in the second quarter valued at about $324,792,000. Dimensional Fund Advisors LP boosted its position in Morningstar by 9.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 517,769 shares of the business services provider's stock valued at $87,514,000 after acquiring an additional 45,798 shares in the last quarter. Renaissance Technologies LLC raised its stake in Morningstar by 38.6% in the first quarter. Renaissance Technologies LLC now owns 448,870 shares of the business services provider's stock valued at $75,881,000 after buying an additional 125,100 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in Morningstar by 38.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 394,931 shares of the business services provider's stock worth $66,763,000 after acquiring an additional 109,833 shares in the last quarter. 57.02% of the stock is owned by hedge funds and other institutional investors.

About Morningstar

Morningstar, Inc is a global provider of independent investment research, data, and analytical services. The company serves individual investors, financial advisors, asset managers, institutions, and retirement plan providers through information and tools designed to support investment research, portfolio construction, wealth management, and financial planning.

Its offerings include ratings and research on mutual funds, exchange-traded funds, stocks, bonds, and other investments; portfolio management and investment research platforms such as Morningstar Direct and Morningstar Advisor Workstation; and data, analytics, and software for asset managers and financial institutions.

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