Wells Fargo & Company Has Lowered Expectations for Marsh & McLennan Companies (NYSE:MMC) Stock Price

Key Points

• Wells Fargo & Company has lowered its price target for Marsh & McLennan Companies (NYSE:MMC) from $222.00 to $212.00, maintaining an "equal weight" rating on the stock.
• Despite the price adjustment, analysts suggest a potential upside of 13.45% from the stock's current price, with a consensus target price averaging $235.31 among multiple brokerages.
• The latest earnings report shows Marsh & McLennan Companies beating estimates with an EPS of $1.85, reflecting an 11.5% year-over-year increase in quarterly revenue.

Marsh & McLennan Companies (NYSE:MMC - Get Free Report) had its price objective cut by equities research analysts at Wells Fargo & Company from $222.00 to $212.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has an "equal weight" rating on the financial services provider's stock. Wells Fargo & Company's price objective would suggest a potential upside of 13.45% from the stock's current price.

Several other brokerages have also commented on MMC. Citigroup assumed coverage on shares of Marsh & McLennan Companies in a research report on Wednesday, August 13th. They set a "neutral" rating and a $226.00 target price on the stock. JPMorgan Chase & Co. upgraded shares of Marsh & McLennan Companies from a "neutral" rating to an "overweight" rating and decreased their target price for the stock from $248.00 to $242.00 in a research report on Thursday, October 9th. Weiss Ratings restated a "hold (c+)" rating on shares of Marsh & McLennan Companies in a research report on Wednesday, October 8th. Cantor Fitzgerald started coverage on Marsh & McLennan Companies in a report on Wednesday, August 13th. They issued an "overweight" rating and a $256.00 target price on the stock. Finally, Wolfe Research started coverage on Marsh & McLennan Companies in a report on Tuesday, September 16th. They issued a "peer perform" rating on the stock. Seven investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $235.31.

Marsh & McLennan Companies Price Performance

Marsh & McLennan Companies stock opened at $186.86 on Friday. The business has a 50 day simple moving average of $203.22 and a 200-day simple moving average of $214.58. The stock has a market capitalization of $91.86 billion, a PE ratio of 22.41, a price-to-earnings-growth ratio of 2.57 and a beta of 0.81. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.20 and a quick ratio of 1.20. Marsh & McLennan Companies has a 12 month low of $185.12 and a 12 month high of $248.00.

Marsh & McLennan Companies (NYSE:MMC - Get Free Report) last released its earnings results on Thursday, October 16th. The financial services provider reported $1.85 EPS for the quarter, beating analysts' consensus estimates of $1.78 by $0.07. The company had revenue of $6.35 billion during the quarter, compared to the consensus estimate of $6.34 billion. Marsh & McLennan Companies had a return on equity of 31.90% and a net margin of 16.00%.Marsh & McLennan Companies's quarterly revenue was up 11.5% compared to the same quarter last year. During the same quarter last year, the company earned $1.63 earnings per share. Equities analysts predict that Marsh & McLennan Companies will post 9.61 earnings per share for the current year.

Insider Activity at Marsh & McLennan Companies

In related news, CEO John Q. Doyle sold 21,079 shares of the stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $205.65, for a total transaction of $4,334,896.35. Following the sale, the chief executive officer owned 87,681 shares of the company's stock, valued at $18,031,597.65. This trade represents a 19.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.35% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Marsh & McLennan Companies

Large investors have recently modified their holdings of the company. Lockerman Financial Group Inc. raised its holdings in shares of Marsh & McLennan Companies by 7.2% during the 3rd quarter. Lockerman Financial Group Inc. now owns 1,735 shares of the financial services provider's stock valued at $350,000 after buying an additional 117 shares during the period. Tower View Wealth Management LLC increased its holdings in Marsh & McLennan Companies by 1.1% during the 3rd quarter. Tower View Wealth Management LLC now owns 31,053 shares of the financial services provider's stock worth $6,258,000 after purchasing an additional 345 shares during the last quarter. HBK Sorce Advisory LLC increased its holdings in Marsh & McLennan Companies by 3.4% during the 3rd quarter. HBK Sorce Advisory LLC now owns 11,431 shares of the financial services provider's stock worth $2,330,000 after purchasing an additional 375 shares during the last quarter. Avanza Fonder AB increased its holdings in Marsh & McLennan Companies by 10.0% during the 3rd quarter. Avanza Fonder AB now owns 39,722 shares of the financial services provider's stock worth $8,005,000 after purchasing an additional 3,623 shares during the last quarter. Finally, CWM LLC grew its position in shares of Marsh & McLennan Companies by 61.1% in the 3rd quarter. CWM LLC now owns 36,505 shares of the financial services provider's stock worth $7,357,000 after acquiring an additional 13,840 shares in the last quarter. 87.99% of the stock is currently owned by hedge funds and other institutional investors.

About Marsh & McLennan Companies

Marsh & McLennan Cos., Inc is a professional services firm, which engages in offering clients advice and solutions in risk, strategy, and people. It operates through the Risk and Insurance Services, and Consulting segments. The Risk and Insurance Services segment is involved in risk management activities, as well as insurance and reinsurance broking and services.

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