Morningstar (NASDAQ:MORN) Announces Quarterly Earnings Results, Beats Estimates By $0.37 EPS

Morningstar (NASDAQ:MORN) announced its quarterly earnings results on Thursday. The business services provider reported $2.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.34 by $0.37, FiscalAI reports. The company had revenue of $641.10 million during the quarter, compared to the consensus estimate of $634.43 million. Morningstar had a return on equity of 25.07% and a net margin of 15.70%.

Morningstar Price Performance

Shares of NASDAQ MORN traded down $1.34 during mid-day trading on Thursday, reaching $154.01. The company’s stock had a trading volume of 1,403,076 shares, compared to its average volume of 558,702. The stock has a 50-day moving average of $207.02 and a two-hundred day moving average of $226.39. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.04 and a current ratio of 1.04. The stock has a market capitalization of $6.33 billion, a P/E ratio of 17.52 and a beta of 1.08. Morningstar has a 1-year low of $149.08 and a 1-year high of $330.55.

Morningstar Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 2nd will be given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Friday, October 2nd. Morningstar’s dividend payout ratio is 22.75%.

Insider Activity

In other Morningstar news, Chairman Joseph D. Mansueto sold 3,214 shares of the stock in a transaction dated Tuesday, February 10th. The shares were sold at an average price of $162.84, for a total value of $523,367.76. Following the completion of the sale, the chairman owned 8,212,442 shares in the company, valued at approximately $1,337,314,055.28. This represents a 0.04% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Caroline J. Tsay sold 600 shares of the business’s stock in a transaction that occurred on Monday, December 29th. The stock was sold at an average price of $218.48, for a total value of $131,088.00. Following the transaction, the director owned 3,745 shares in the company, valued at approximately $818,207.60. This represents a 13.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 49,674 shares of company stock valued at $9,604,948. 36.20% of the stock is owned by corporate insiders.

Institutional Trading of Morningstar

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. AQR Capital Management LLC raised its holdings in shares of Morningstar by 106.9% during the 3rd quarter. AQR Capital Management LLC now owns 608,244 shares of the business services provider’s stock worth $141,119,000 after acquiring an additional 314,275 shares during the period. Voloridge Investment Management LLC increased its position in Morningstar by 362.8% during the third quarter. Voloridge Investment Management LLC now owns 187,128 shares of the business services provider’s stock worth $43,416,000 after purchasing an additional 146,693 shares during the last quarter. Two Sigma Investments LP raised its stake in Morningstar by 78.1% during the third quarter. Two Sigma Investments LP now owns 286,175 shares of the business services provider’s stock worth $66,395,000 after purchasing an additional 125,507 shares during the period. Focus Partners Wealth boosted its holdings in Morningstar by 2,899.4% in the 3rd quarter. Focus Partners Wealth now owns 128,855 shares of the business services provider’s stock valued at $29,896,000 after purchasing an additional 124,559 shares during the last quarter. Finally, DF Dent & Co. Inc. grew its stake in shares of Morningstar by 129.4% in the 3rd quarter. DF Dent & Co. Inc. now owns 199,585 shares of the business services provider’s stock valued at $46,306,000 after buying an additional 112,573 shares during the period. 57.02% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. UBS Group dropped their price target on shares of Morningstar from $350.00 to $320.00 and set a “buy” rating on the stock in a research report on Thursday, October 30th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Morningstar in a report on Monday, December 29th. BMO Capital Markets set a $250.00 price objective on Morningstar in a report on Thursday, October 30th. Finally, Wall Street Zen raised Morningstar from a “hold” rating to a “buy” rating in a research note on Friday, January 23rd. Two investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, Morningstar has an average rating of “Moderate Buy” and an average target price of $285.00.

About Morningstar

Morningstar, Inc is a leading provider of independent investment research, data, and analytics, serving both individual investors and financial professionals. The company offers comprehensive coverage of financial products, including mutual funds, exchange-traded funds (ETFs), stocks, bonds and market indexes. Morningstar’s proprietary rating systems and research methodologies help clients assess the risk and return profiles of investment opportunities and make informed decisions.

Its core products include Morningstar Direct, an institutional investment analysis platform; Morningstar Office Cloud, a portfolio management solution for advisors; and Morningstar Data, which delivers extensive datasets through APIs and data feeds.