Marsh & McLennan Companies (NYSE:MMC) Shares Gap Up After Strong Earnings

Shares of Marsh & McLennan Companies, Inc. (NYSE:MMC) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $197.62, but opened at $205.98. Marsh & McLennan Companies shares last traded at $204.26, with a volume of 329,397 shares.

The financial services provider reported $2.89 earnings per share for the quarter, topping analysts’ consensus estimates of $2.80 by $0.09. The firm had revenue of $6.50 billion during the quarter, compared to analysts’ expectations of $6.38 billion. Marsh & McLennan Companies had a return on equity of 33.72% and a net margin of 16.52%. Marsh & McLennan Companies’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.53 EPS.

Marsh & McLennan Companies Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 15th. Investors of record on Thursday, April 4th will be given a dividend of $0.71 per share. This represents a $2.84 annualized dividend and a dividend yield of 1.39%. The ex-dividend date of this dividend is Wednesday, April 3rd. Marsh & McLennan Companies’s dividend payout ratio is currently 37.72%.

Analyst Ratings Changes

Several research analysts have recently commented on the stock. Wells Fargo & Company lowered shares of Marsh & McLennan Companies from an “overweight” rating to an “equal weight” rating and set a $212.00 price target for the company. in a report on Thursday, April 11th. Evercore ISI increased their target price on Marsh & McLennan Companies from $212.00 to $218.00 and gave the stock an “outperform” rating in a research report on Thursday, April 11th. Morgan Stanley upped their price target on shares of Marsh & McLennan Companies from $205.00 to $210.00 and gave the stock an “equal weight” rating in a research report on Monday. TD Cowen started coverage on shares of Marsh & McLennan Companies in a research note on Wednesday, January 10th. They set a “market perform” rating and a $189.00 target price for the company. Finally, The Goldman Sachs Group cut Marsh & McLennan Companies from a “buy” rating to a “sell” rating and cut their price target for the company from $215.00 to $185.00 in a report on Monday, January 8th. Two equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $204.73.

Insider Activity at Marsh & McLennan Companies

In related news, CFO Mark C. Mcgivney sold 12,494 shares of the business’s stock in a transaction on Monday, March 4th. The stock was sold at an average price of $200.79, for a total value of $2,508,670.26. Following the sale, the chief financial officer now owns 33,678 shares of the company’s stock, valued at approximately $6,762,205.62. The sale was disclosed in a legal filing with the SEC, which is available through this link. In other news, CEO Martine Ferland sold 9,128 shares of the stock in a transaction that occurred on Tuesday, March 5th. The shares were sold at an average price of $201.63, for a total transaction of $1,840,478.64. Following the sale, the chief executive officer now directly owns 9,979 shares of the company’s stock, valued at $2,012,065.77. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Mark C. Mcgivney sold 12,494 shares of the stock in a transaction on Monday, March 4th. The shares were sold at an average price of $200.79, for a total value of $2,508,670.26. Following the completion of the transaction, the chief financial officer now owns 33,678 shares in the company, valued at $6,762,205.62. The disclosure for this sale can be found here. Insiders have sold 36,751 shares of company stock worth $7,448,163 over the last three months. Company insiders own 0.30% of the company’s stock.

Institutional Trading of Marsh & McLennan Companies

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MMC. Ignite Planners LLC boosted its stake in Marsh & McLennan Companies by 4.3% in the third quarter. Ignite Planners LLC now owns 1,267 shares of the financial services provider’s stock valued at $243,000 after acquiring an additional 52 shares during the last quarter. Westover Capital Advisors LLC increased its position in shares of Marsh & McLennan Companies by 3.0% in the 4th quarter. Westover Capital Advisors LLC now owns 1,843 shares of the financial services provider’s stock valued at $349,000 after buying an additional 53 shares in the last quarter. Evoke Wealth LLC lifted its holdings in Marsh & McLennan Companies by 4.4% during the fourth quarter. Evoke Wealth LLC now owns 1,258 shares of the financial services provider’s stock worth $238,000 after acquiring an additional 53 shares in the last quarter. RDA Financial Network lifted its holdings in shares of Marsh & McLennan Companies by 3.1% during the 1st quarter. RDA Financial Network now owns 1,762 shares of the financial services provider’s stock valued at $363,000 after purchasing an additional 53 shares in the last quarter. Finally, Optas LLC increased its stake in Marsh & McLennan Companies by 2.9% during the 1st quarter. Optas LLC now owns 1,880 shares of the financial services provider’s stock worth $387,000 after purchasing an additional 53 shares in the last quarter. 87.99% of the stock is currently owned by institutional investors and hedge funds.

Marsh & McLennan Companies Stock Up 3.5 %

The company has a debt-to-equity ratio of 0.96, a quick ratio of 1.10 and a current ratio of 1.10. The firm’s fifty day simple moving average is $202.67 and its 200 day simple moving average is $196.69. The stock has a market capitalization of $100.95 billion, a price-to-earnings ratio of 26.24, a P/E/G ratio of 3.56 and a beta of 0.90.

About Marsh & McLennan Companies

Marsh & McLennan Companies, Inc, a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. It operates through Risk and Insurance Services, and Consulting segments. The Risk and Insurance Services segment offers risk management services, such as risk advice, risk transfer, and risk control and mitigation solutions, as well as insurance and reinsurance broking, strategic advisory services, and analytics solutions, and insurance program management services.