First Trust Advisors LP Reduces Stock Holdings in Morningstar, Inc. $MORN

First Trust Advisors LP lessened its position in shares of Morningstar, Inc. (NASDAQ:MORN) by 59.9% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 25,731 shares of the business services provider’s stock after selling 38,444 shares during the period. First Trust Advisors LP’s holdings in Morningstar were worth $4,350,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Osterweis Capital Management Inc. purchased a new position in shares of Morningstar in the second quarter worth about $29,000. Measured Wealth Private Client Group LLC purchased a new stake in shares of Morningstar during the 3rd quarter valued at approximately $26,000. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of Morningstar during the 4th quarter valued at approximately $25,000. Cassaday & Co Wealth Management LLC bought a new position in Morningstar in the 1st quarter worth approximately $26,000. Finally, V Square Quantitative Management LLC bought a new position in Morningstar in the 4th quarter worth approximately $35,000. Institutional investors own 57.02% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Weiss Ratings cut Morningstar from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, July 30th. Rothschild & Co Redburn set a $210.00 price objective on Morningstar in a report on Thursday, June 18th. Wall Street Zen upgraded Morningstar from a “hold” rating to a “buy” rating in a research note on Sunday, June 21st. UBS Group reduced their target price on Morningstar from $280.00 to $260.00 and set a “buy” rating for the company in a report on Tuesday, July 7th. Finally, BMO Capital Markets reiterated an “outperform” rating and set a $212.00 price target on shares of Morningstar in a research report on Friday, June 26th. Two investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $227.33.

Morningstar Stock Performance

NASDAQ MORN opened at $200.25 on Wednesday. The company has a 50-day simple moving average of $173.10 and a two-hundred day simple moving average of $176.79. Morningstar, Inc. has a 12-month low of $141.49 and a 12-month high of $272.00. The firm has a market cap of $7.51 billion, a price-to-earnings ratio of 18.96 and a beta of 0.99. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 1.66.

Morningstar (NASDAQ:MORN) last announced its quarterly earnings results on Wednesday, July 29th. The business services provider reported $3.10 earnings per share for the quarter, beating the consensus estimate of $2.83 by $0.27. The business had revenue of $663.20 million during the quarter, compared to analysts’ expectations of $649.72 million. Morningstar had a net margin of 16.43% and a return on equity of 38.57%.

Insider Buying and Selling at Morningstar

In other Morningstar news, Chairman Joseph D. Mansueto sold 2,270 shares of the company’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $176.72, for a total value of $401,154.40. Following the sale, the chairman owned 8,043,492 shares in the company, valued at approximately $1,421,445,906.24. This represents a 0.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michael Holt sold 270 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $166.05, for a total value of $44,833.50. Following the transaction, the chief financial officer directly owned 12,326 shares of the company’s stock, valued at approximately $2,046,732.30. This trade represents a 2.14% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 43,970 shares of company stock valued at $7,691,126. 38.80% of the stock is currently owned by corporate insiders.

Morningstar News Roundup

Here are the key news stories impacting Morningstar this week:

• Positive Sentiment: Q2 earnings beat expectations. Morningstar reported EPS of $3.10 versus the $2.83 consensus estimate and revenue of $663.2 million versus expectations of $649.7 million. Another analysis cited 9.6% year-over-year revenue growth and 29.2% growth in non-GAAP EPS, reinforcing the company’s earnings momentum. Morningstar: Undervalued With A Differentiated Business Model
• Positive Sentiment: Valuation remains a potential catalyst. Morningstar was described as undervalued at roughly 15.6 times estimated 2026 earnings, well below its historical 35–40 times range. The analysis set a fair-value estimate of $246.40 and highlighted strong cash flow, a conservative payout ratio and a 15-year dividend-growth streak. Morningstar: Undervalued With A Differentiated Business Model
• Neutral Sentiment: Investment-research commentary supports brand visibility. Morningstar said artificial-intelligence-related power demand, rather than stronger ESG sentiment, is driving renewed inflows into sustainable ETFs. The commentary may benefit Morningstar’s industry profile, but it does not provide a direct forecast for MORN revenue or earnings. AI, Not ESG, Is Driving the Revival in Sustainable ETFs
• Negative Sentiment: Director selling adds a modest overhang. Director William Lyons sold 1,000 shares for approximately $199,000, reducing his direct position by 7.19%. The transaction is relatively small and may reflect personal portfolio management, but insider selling can temper sentiment in the short term. Morningstar Director Form 4 Filing

Morningstar Company Profile

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.