According to Zacks, “Marsh & McLennan should benefit from improved pricing, stable ratings, strong capital management and expense control initiatives. Its segments Risk and Insurance Services and Consulting are also performing well. The company's effective capital management via share buyback and dividend payment also remains impressive. Also its strategic acquisitions and restructuring initiatives have generated new clients will generate long term growth. Nevertheless, its exposure to currency volatility due to huge international presence, and integration risks from acquisitions raises concern. The company is expected to release third quarter earnings on Oct 25, 2016. The Zacks Consensus earning estimate for the quarter is pegged at $0.69 per share which translates into year over year growth rate of 9.2%.”
A number of other equities research analysts have also weighed in on the stock. BMO Capital Markets reissued a market perform rating and set a $73.00 target price (down from $77.00) on shares of Marsh & McLennan Cos. in a report on Tuesday, July 12th. Barclays PLC reissued an overweight rating and set a $71.00 target price on shares of Marsh & McLennan Cos. in a report on Tuesday, June 21st. Keefe, Bruyette & Woods boosted their target price on shares of Marsh & McLennan Cos. from $69.00 to $71.00 and gave the stock an outperform rating in a report on Friday, July 29th. Deutsche Bank AG boosted their target price on shares of Marsh & McLennan Cos. from $67.00 to $71.00 and gave the stock a buy rating in a report on Friday, July 29th. Finally, Credit Suisse Group AG set a $55.00 target price on shares of Marsh & McLennan Cos. and gave the stock a hold rating in a report on Monday, September 12th. Four investment analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company. Marsh & McLennan Cos. presently has an average rating of Buy and a consensus price target of $68.50.
Shares of Marsh & McLennan Cos. (NYSE:MMC) opened at 66.33 on Tuesday. The stock’s 50 day moving average is $67.16 and its 200 day moving average is $65.29. The company has a market capitalization of $34.37 billion, a PE ratio of 21.19 and a beta of 0.93. Marsh & McLennan Cos. has a 1-year low of $50.81 and a 1-year high of $68.69.
Marsh & McLennan Cos. (NYSE:MMC) last announced its quarterly earnings results on Thursday, July 28th. The company reported $0.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $0.01. The company had revenue of $3.40 billion for the quarter, compared to analyst estimates of $3.38 billion. Marsh & McLennan Cos. had a net margin of 12.54% and a return on equity of 25.30%. The firm’s revenue was up 4.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.80 EPS. On average, equities research analysts anticipate that Marsh & McLennan Cos. will post $3.38 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 15th. Stockholders of record on Tuesday, October 11th will be paid a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a dividend yield of 2.05%. The ex-dividend date of this dividend is Thursday, October 6th. Marsh & McLennan Cos.’s dividend payout ratio is currently 43.45%.
In other news, Chairman Alexander S. Moczarski sold 22,230 shares of the company’s stock in a transaction on Monday, August 15th. The shares were sold at an average price of $67.41, for a total value of $1,498,524.30. The transaction was disclosed in a document filed with the SEC, which is available through this link. 1.51% of the stock is currently owned by insiders.
Several large investors have recently bought and sold shares of MMC. Washington Trust Bank raised its stake in Marsh & McLennan Cos. by 0.6% in the third quarter. Washington Trust Bank now owns 1,695 shares of the company’s stock worth $114,000 after buying an additional 10 shares in the last quarter. Sawtooth Asset Management Inc. increased its position in Marsh & McLennan Cos. by 1.2% in the second quarter. Sawtooth Asset Management Inc. now owns 3,928 shares of the company’s stock worth $269,000 after buying an additional 46 shares during the last quarter. HL Financial Services LLC increased its position in Marsh & McLennan Cos. by 0.4% in the second quarter. HL Financial Services LLC now owns 16,324 shares of the company’s stock worth $1,118,000 after buying an additional 60 shares during the last quarter. First National Trust Co. increased its position in Marsh & McLennan Cos. by 0.9% in the second quarter. First National Trust Co. now owns 8,622 shares of the company’s stock worth $590,000 after buying an additional 79 shares during the last quarter. Finally, IFP Advisors Inc increased its position in Marsh & McLennan Cos. by 1.8% in the second quarter. IFP Advisors Inc now owns 4,457 shares of the company’s stock worth $305,000 after buying an additional 79 shares during the last quarter. 85.97% of the stock is currently owned by institutional investors.
About Marsh & McLennan Cos.
Marsh & McLennan Companies, Inc is a professional services firm offering clients advice and solutions in risk, strategy and people. The Company is the parent company of various specialty consultants, including Marsh, an insurance broker, intermediary and risk advisor; Guy Carpenter, a risk and reinsurance specialist; Mercer, a provider of human resource (HR) and related financial advice and services, and Oliver Wyman Group, a management, economic and brand consultancy.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Marsh & McLennan Cos. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Marsh & McLennan Cos. and related companies with MarketBeat.com's FREE daily email newsletter.