Marsh & McLennan Cos. (MMC) Upgraded by Zacks Investment Research to “Buy”
Zacks Investment Research upgraded shares of Marsh & McLennan Cos. (NYSE:MMC) from a hold rating to a buy rating in a research report report published on Monday. They currently have $75.00 price objective on the stock.
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 brokerages also recently commented on MMC. BMO Capital Markets reissued a market perform rating and issued a $73.00 price objective (down previously from $77.00) on shares of Marsh & McLennan Cos. in a research report on Tuesday, July 12th. Deutsche Bank AG lifted their price objective on shares of 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 price objective on shares of Marsh & McLennan Cos. and gave the company a hold rating in a research report on Monday, September 12th. Barclays PLC reissued an overweight rating and issued a $71.00 price objective on shares of Marsh & McLennan Cos. in a research report on Tuesday, June 21st. Finally, Keefe, Bruyette & Woods lifted their price objective on shares of Marsh & McLennan Cos. from $69.00 to $71.00 and gave the company an outperform rating in a research report on Friday, July 29th. Four research analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the stock. Marsh & McLennan Cos. presently has a consensus rating of Buy and a consensus target price of $68.50.
Shares of Marsh & McLennan Cos. (NYSE:MMC) opened at 66.39 on Monday. The company has a 50-day moving average of $67.12 and a 200-day moving average of $65.30. The company has a market cap of $34.41 billion, a PE ratio of 21.21 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 released its earnings results on Thursday, July 28th. The company reported $0.91 earnings per share for the quarter, beating analysts’ consensus estimates of $0.90 by $0.01. The business earned $3.40 billion during the quarter, compared to the consensus estimate 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 for the quarter was up 4.7% compared to the same quarter last year. During the same quarter last year, the firm earned $0.80 earnings per share. Equities analysts forecast that Marsh & McLennan Cos. will post $3.38 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 15th. Shareholders of record on Tuesday, October 11th will be paid a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 2.05%. The ex-dividend date of this dividend is Thursday, October 6th. Marsh & McLennan Cos.’s dividend payout ratio (DPR) is 43.45%.
In other Marsh & McLennan Cos. news, Chairman Alexander S. Moczarski sold 22,230 shares of Marsh & McLennan Cos. stock in a transaction dated Monday, August 15th. The shares were sold at an average price of $67.41, for a total value of $1,498,524.30. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 1.51% of the stock is currently owned by company insiders.
Institutional investors have recently modified their holdings of the stock. Washington Trust Bank boosted its position in shares of Marsh & McLennan Cos. by 2.9% in the second quarter. Washington Trust Bank now owns 1,685 shares of the company’s stock valued at $115,000 after buying an additional 48 shares during the last quarter. BlueMountain Capital Management LLC purchased a new position in shares of Marsh & McLennan Cos. during the first quarter valued at approximately $121,000. Financial Architects Inc boosted its position in shares of Marsh & McLennan Cos. by 326.2% in the second quarter. Financial Architects Inc now owns 2,144 shares of the company’s stock valued at $146,000 after buying an additional 1,641 shares during the last quarter. Howard Hughes Medical Institute purchased a new position in shares of Marsh & McLennan Cos. during the first quarter valued at approximately $136,000. Finally, Integrated Investment Consultants LLC boosted its position in shares of Marsh & McLennan Cos. by 10.7% in the second quarter. Integrated Investment Consultants LLC now owns 2,356 shares of the company’s stock valued at $161,000 after buying an additional 228 shares during the last quarter. Institutional investors own 85.97% of the company’s stock.
Marsh & McLennan Cos. Company Profile
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.
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