Short Interest in Morningstar, Inc. (NASDAQ:MORN) Declines By 32.6%

Key Points

• Short interest in Morningstar, Inc. has declined by 32.6% to 721,300 shares as of September 30th, accounting for approximately 2.9% of the company's stock.
• Insider Chairman Joseph D. Mansueto sold 6,705 shares at an average price of $260.65, reducing his ownership stake by 0.07% to about 9.3 million shares.
• Analysts have given Morningstar an average rating of "Moderate Buy" with a target price of $355.00, although some reports have downgraded the stock to a "hold" rating.

Morningstar, Inc. (NASDAQ:MORN - Get Free Report) saw a large decrease in short interest during the month of September. As of September 30th, there was short interest totaling 721,300 shares, a decrease of 32.6% from the September 15th total of 1,070,000 shares. Approximately 2.9% of the company's stock are sold short. Based on an average daily trading volume, of 395,700 shares, the days-to-cover ratio is presently 1.8 days. Based on an average daily trading volume, of 395,700 shares, the days-to-cover ratio is presently 1.8 days. Approximately 2.9% of the company's stock are sold short.

Insider Activity at Morningstar

In other news, Chairman Joseph D. Mansueto sold 6,705 shares of the firm's stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $260.65, for a total value of $1,747,658.25. Following the completion of the sale, the chairman directly owned 9,312,836 shares of the company's stock, valued at $2,427,390,703.40. This trade represents a 0.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Over the last three months, insiders sold 85,500 shares of company stock valued at $22,341,957. Corporate insiders own 36.20% of the company's stock.

Hedge Funds Weigh In On Morningstar

Institutional investors have recently modified their holdings of the business. Hughes Financial Services LLC acquired a new position in Morningstar during the first quarter worth about $25,000. Osterweis Capital Management Inc. acquired a new position in Morningstar during the 2nd quarter worth approximately $29,000. IFP Advisors Inc increased its position in Morningstar by 270.3% during the 2nd quarter. IFP Advisors Inc now owns 137 shares of the business services provider's stock worth $43,000 after purchasing an additional 100 shares in the last quarter. Larson Financial Group LLC increased its position in Morningstar by 5,066.7% during the 1st quarter. Larson Financial Group LLC now owns 155 shares of the business services provider's stock worth $46,000 after purchasing an additional 152 shares in the last quarter. Finally, MAI Capital Management increased its position in Morningstar by 37.8% during the 1st quarter. MAI Capital Management now owns 153 shares of the business services provider's stock worth $46,000 after purchasing an additional 42 shares in the last quarter. Institutional investors and hedge funds own 57.02% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently issued reports on MORN. Wall Street Zen cut shares of Morningstar from a "buy" rating to a "hold" rating in a research note on Saturday, July 5th. Weiss Ratings restated a "hold (c)" rating on shares of Morningstar in a research report on Wednesday, October 8th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, Morningstar currently has an average rating of "Moderate Buy" and an average target price of $355.00.

Morningstar Price Performance

MORN stock traded down $1.88 during midday trading on Thursday, reaching $218.09. The company had a trading volume of 286,184 shares, compared to its average volume of 264,989. The stock has a 50 day moving average price of $242.42 and a 200-day moving average price of $274.51. The company has a market capitalization of $9.20 billion, a price-to-earnings ratio of 23.23 and a beta of 1.00. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.13 and a quick ratio of 1.13. Morningstar has a 1-year low of $210.02 and a 1-year high of $365.00.

Morningstar (NASDAQ:MORN - Get Free Report) last issued its earnings results on Wednesday, July 30th. The business services provider reported $2.40 EPS for the quarter, beating the consensus estimate of $2.21 by $0.19. Morningstar had a net margin of 17.22% and a return on equity of 23.54%. The company had revenue of $605.10 million during the quarter, compared to analysts' expectations of $605.84 million.

Morningstar Company Profile

Morningstar, Inc provides independent investment insights in the United States, Asia. Australia, Continental Europe, the United Kingdom, and internationally. The company operates in five segments: Morningstar Data and Analytics; PitchBook; Morningstar Wealth; Morningstar Credit; and Morningstar Retirement.

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