Marsh & McLennan Cos. (NYSE:MMC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
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. Barclays PLC restated a “buy” rating and issued a $77.00 price objective on shares of Marsh & McLennan Cos. in a report on Friday, September 30th. 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 report on Monday, September 12th. BMO Capital Markets restated a “market perform” rating and issued a $74.00 price objective (up from $73.00) on shares of Marsh & McLennan Cos. in a report on Wednesday, August 3rd. Keefe, Bruyette & Woods raised their price objective on shares of Marsh & McLennan Cos. from $69.00 to $71.00 and gave the company an “outperform” rating in a report on Friday, July 29th. Finally, Deutsche Bank AG raised their price objective on shares of Marsh & McLennan Cos. from $67.00 to $71.00 and gave the company a “buy” rating in a 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 issued a strong buy rating to the company’s stock. Marsh & McLennan Cos. has a consensus rating of “Buy” and a consensus price target of $68.50.
Shares of Marsh & McLennan Cos. (NYSE:MMC) opened at 65.98 on Tuesday. 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 $34.19 billion, a price-to-earnings ratio of 21.08 and a beta of 0.93. The firm has a 50-day moving average of $67.14 and a 200 day moving average of $65.30.
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, beating the Zacks’ consensus estimate of $0.90 by $0.01. Marsh & McLennan Cos. had a net margin of 12.54% and a return on equity of 25.30%. The business had revenue of $3.40 billion for the quarter, compared to analyst estimates of $3.38 billion. During the same period last year, the business earned $0.80 EPS. The company’s revenue was up 4.7% on a year-over-year basis. Equities analysts forecast that Marsh & McLennan Cos. will post $3.38 earnings per share for the current fiscal 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. The ex-dividend date of this dividend is Thursday, October 6th. This represents a $1.36 dividend on an annualized basis and a yield of 2.05%. Marsh & McLennan Cos.’s dividend payout ratio is presently 43.45%.
In other Marsh & McLennan Cos. news, Chairman Alexander S. Moczarski sold 22,230 shares of Marsh & McLennan Cos. 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 company insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of MMC. Aviva PLC increased its stake in shares of Marsh & McLennan Cos. by 0.6% in the first quarter. Aviva PLC now owns 267,661 shares of the company’s stock valued at $16,271,000 after buying an additional 1,661 shares during the last quarter. A.R. Schmeidler & Co. Inc. increased its stake in shares of Marsh & McLennan Cos. by 0.3% in the first quarter. A.R. Schmeidler & Co. Inc. now owns 100,368 shares of the company’s stock valued at $6,101,000 after buying an additional 332 shares during the last quarter. M&T Bank Corp increased its stake in shares of Marsh & McLennan Cos. by 1.1% in the first quarter. M&T Bank Corp now owns 52,998 shares of the company’s stock valued at $3,220,000 after buying an additional 592 shares during the last quarter. Menta Capital LLC purchased a new stake in shares of Marsh & McLennan Cos. during the first quarter valued at $1,173,000. Finally, Advisor Partners LLC increased its stake in shares of Marsh & McLennan Cos. by 101.3% in the first quarter. Advisor Partners LLC now owns 10,128 shares of the company’s stock valued at $616,000 after buying an additional 5,097 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.
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.