Marsh & McLennan Cos. (NYSE:MMC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Marsh & McLennan's exposure to currency volatility due to huge international presence, and integration risks from acquisitions raises concern. Nevertheless its strategic acquisitions and restructuring initiatives have generated new clients, triggering growth. The upcoming quarters 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. 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 9.4%.”
MMC has been the subject of several other reports. BMO Capital Markets reiterated a “market perform” rating and issued a $73.00 target price (down from $77.00) on shares of Marsh & McLennan Cos. in a research report on Tuesday, July 12th. Deutsche Bank AG increased their target price on Marsh & McLennan Cos. from $67.00 to $71.00 and gave the company a “buy” rating in a research report on Friday, July 29th. Credit Suisse Group AG set a $55.00 target price on Marsh & McLennan Cos. and gave the company a “hold” rating in a research report on Monday, September 12th. Barclays PLC reiterated an “overweight” rating and issued a $71.00 target price on shares of Marsh & McLennan Cos. in a research report on Tuesday, June 21st. Finally, Keefe, Bruyette & Woods increased their target price on Marsh & McLennan Cos. from $69.00 to $71.00 and gave the company an “outperform” rating in a research report on Friday, July 29th. One investment analyst has rated the stock with a sell rating, three have given a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the stock. The stock has a consensus rating of “Buy” and an average target price of $67.60.
Shares of Marsh & McLennan Cos. (NYSE:MMC) traded up 0.91% during trading on Tuesday, hitting $67.62. The company had a trading volume of 792,989 shares. The stock has a 50-day moving average of $67.21 and a 200 day moving average of $64.95. Marsh & McLennan Cos. has a 12-month low of $50.81 and a 12-month high of $68.69. The stock has a market capitalization of $35.04 billion, a price-to-earnings ratio of 21.60 and a beta of 0.98.
Marsh & McLennan Cos. (NYSE:MMC) last announced its quarterly earnings data on Thursday, July 28th. The company reported $0.91 earnings per share for the quarter, topping the consensus estimate of $0.90 by $0.01. Marsh & McLennan Cos. had a return on equity of 25.30% and a net margin of 12.54%. The business earned $3.40 billion during the quarter, compared to the consensus estimate of $3.38 billion. During the same period in the prior year, the company earned $0.80 EPS. Marsh & McLennan Cos.’s revenue for the quarter was up 4.7% on a year-over-year basis. On average, analysts predict that Marsh & McLennan Cos. will post $3.38 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 15th. Investors of record on Tuesday, October 11th will be paid a dividend of $0.34 per share. The ex-dividend date is Thursday, October 6th. This represents a $1.36 annualized dividend and a yield of 2.03%. Marsh & McLennan Cos.’s dividend payout ratio is currently 43.45%.
In related news, Chairman Alexander S. Moczarski sold 22,230 shares of the firm’s stock in a transaction that occurred on Monday, August 15th. The stock was sold at an average price of $67.41, for a total transaction of $1,498,524.30. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.51% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in the company. Raymond James Trust N.A. boosted its stake in shares of Marsh & McLennan Cos. by 1.0% in the first quarter. Raymond James Trust N.A. now owns 4,220 shares of the company’s stock worth $256,000 after buying an additional 43 shares during the period. Glenmede Trust Co. NA boosted its stake in shares of Marsh & McLennan Cos. by 371.0% in the first quarter. Glenmede Trust Co. NA now owns 341,042 shares of the company’s stock worth $20,731,000 after buying an additional 268,638 shares during the period. Commonwealth Equity Services Inc boosted its stake in shares of Marsh & McLennan Cos. by 3.2% in the first quarter. Commonwealth Equity Services Inc now owns 42,557 shares of the company’s stock worth $2,587,000 after buying an additional 1,322 shares during the period. Virginia Retirement System purchased a new stake in shares of Marsh & McLennan Cos. during the first quarter worth approximately $514,000. Finally, IFP Advisors Inc boosted its stake in shares of Marsh & McLennan Cos. by 10.2% in the first quarter. IFP Advisors Inc now owns 4,378 shares of the company’s stock worth $266,000 after buying an additional 404 shares during the period. 85.97% of the stock is owned by institutional investors and hedge funds.
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.