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

Marsh & McLennan Companies, Inc. (NYSE:MMC) shares 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 (EPS) for the quarter, topping analysts’ consensus estimates of $2.80 by $0.09. Marsh & McLennan Companies had a return on equity of 33.72% and a net margin of 16.52%. The company had revenue of $6.50 billion for the quarter, compared to the consensus estimate of $6.38 billion. During the same quarter last year, the business posted $2.53 earnings per share. The firm’s revenue was up 9.7% compared to the same quarter last year.

Marsh & McLennan Companies Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 15th. Shareholders of record on Thursday, April 4th will be given a dividend of $0.71 per share. The ex-dividend date is Wednesday, April 3rd. This represents a $2.84 dividend on an annualized basis and a yield of 1.40%. Marsh & McLennan Companies’s payout ratio is 37.72%.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on MMC shares. Jefferies Financial Group raised their price target on Marsh & McLennan Companies from $197.00 to $208.00 and gave the company a “hold” rating in a research report on Friday. The Goldman Sachs Group downgraded Marsh & McLennan Companies from a “buy” rating to a “sell” rating and decreased their price objective for the stock from $215.00 to $185.00 in a report on Monday, January 8th. Keefe, Bruyette & Woods lifted their price objective on Marsh & McLennan Companies from $185.00 to $188.00 and gave the stock an “underperform” rating in a report on Wednesday, April 10th. Wells Fargo & Company lifted their price objective on Marsh & McLennan Companies from $212.00 to $213.00 and gave the stock an “equal weight” rating in a report on Friday. Finally, JPMorgan Chase & Co. raised their target price on Marsh & McLennan Companies from $190.00 to $198.00 and gave the stock a “neutral” rating in a research note on Monday, April 8th. Two investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and three have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $204.87.

Insider Transactions at Marsh & McLennan Companies

In other news, CEO Dean Michael Klisura sold 9,994 shares of the business’s stock in a transaction that occurred on Friday, March 8th. The stock was sold at an average price of $205.00, for a total value of $2,048,770.00. Following the sale, the chief executive officer now directly owns 20,935 shares of the company’s stock, valued at approximately $4,291,675. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In related news, VP Stacy Mills sold 1,461 shares of the business’s stock in a transaction that occurred on Thursday, March 14th. The shares were sold at an average price of $209.16, for a total value of $305,582.76. Following the completion of the transaction, the vice president now directly owns 2,923 shares in the company, valued at approximately $611,374.68. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Dean Michael Klisura sold 9,994 shares of the business’s stock in a transaction that occurred on Friday, March 8th. The stock was sold at an average price of $205.00, for a total transaction of $2,048,770.00. Following the completion of the transaction, the chief executive officer now owns 20,935 shares of the company’s stock, valued at $4,291,675. The disclosure for this sale can be found here. Insiders have sold a total of 36,751 shares of company stock valued at $7,448,163 in the last ninety days. 0.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Marsh & McLennan Companies

A number of hedge funds have recently added to or reduced their stakes in the stock. Maryland State Retirement & Pension System raised its stake in Marsh & McLennan Companies by 0.9% during the 1st quarter. Maryland State Retirement & Pension System now owns 38,863 shares of the financial services provider’s stock valued at $7,671,000 after buying an additional 330 shares during the last quarter. Horizon Bancorp Inc. IN raised its stake in Marsh & McLennan Companies by 23.0% during the 1st quarter. Horizon Bancorp Inc. IN now owns 798 shares of the financial services provider’s stock valued at $164,000 after buying an additional 149 shares during the last quarter. Marshall Financial Group LLC raised its stake in Marsh & McLennan Companies by 10.9% during the 1st quarter. Marshall Financial Group LLC now owns 4,428 shares of the financial services provider’s stock valued at $912,000 after buying an additional 435 shares during the last quarter. First Trust Direct Indexing L.P. grew its position in shares of Marsh & McLennan Companies by 7.8% during the 1st quarter. First Trust Direct Indexing L.P. now owns 10,261 shares of the financial services provider’s stock valued at $2,114,000 after acquiring an additional 739 shares during the period. Finally, Norden Group LLC bought a new stake in shares of Marsh & McLennan Companies during the 1st quarter valued at $918,000. 87.99% of the stock is currently owned by hedge funds and other institutional investors.

Marsh & McLennan Companies Stock Performance

The business’s 50-day moving average price is $202.86 and its 200-day moving average price is $196.82. 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 stock has a market cap of $99.90 billion, a P/E ratio of 26.88, a P/E/G ratio of 3.59 and a beta of 0.90.

Marsh & McLennan Companies Company Profile

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.