Morningstar (NASDAQ:MORN) Reaches New 1-Year Low – Should You Sell?

Morningstar, Inc. (NASDAQ:MORN)’s stock price hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $202.00 and last traded at $202.6440, with a volume of 40160 shares changing hands. The stock had previously closed at $211.24.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on MORN. BMO Capital Markets set a $250.00 target price on shares of Morningstar in a research note on Thursday, October 30th. Wall Street Zen upgraded Morningstar from a “hold” rating to a “buy” rating in a research note on Friday. UBS Group cut their price target on Morningstar from $350.00 to $320.00 and set a “buy” rating on the stock in a research note on Thursday, October 30th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Morningstar in a report on Monday, December 29th. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, Morningstar currently has an average rating of “Moderate Buy” and an average price target of $285.00.

Morningstar Stock Down 4.0%

The stock’s fifty day simple moving average is $214.50 and its two-hundred day simple moving average is $234.68. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.04 and a quick ratio of 1.04. The company has a market capitalization of $8.34 billion, a price-to-earnings ratio of 23.10 and a beta of 1.08.

Morningstar (NASDAQ:MORN) last released its quarterly earnings data on Wednesday, October 29th. The business services provider reported $2.55 earnings per share for the quarter, topping the consensus estimate of $2.42 by $0.13. The firm had revenue of $617.40 million for the quarter, compared to analyst estimates of $603.29 million. Morningstar had a net margin of 15.70% and a return on equity of 25.07%.

Morningstar Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 2nd will be given a dividend of $0.50 per share. The ex-dividend date is Friday, October 2nd. This represents a $2.00 annualized dividend and a dividend yield of 1.0%. Morningstar’s dividend payout ratio is currently 22.75%.

Insider Transactions at Morningstar

In other Morningstar news, Chairman Joseph D. Mansueto sold 1,286 shares of the business’s stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $213.12, for a total transaction of $274,072.32. Following the completion of the transaction, the chairman directly owned 8,600,815 shares of the company’s stock, valued at $1,833,005,692.80. The trade was a 0.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Caroline J. Tsay sold 600 shares of the company’s stock in a transaction dated Monday, December 29th. The stock was sold at an average price of $218.48, for a total transaction of $131,088.00. Following the completion of the transaction, the director owned 3,745 shares of the company’s stock, valued at approximately $818,207.60. This trade represents a 13.81% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 64,350 shares of company stock worth $13,668,311. Corporate insiders own 36.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of MORN. Osterweis Capital Management Inc. bought a new stake in shares of Morningstar during the second quarter valued at about $29,000. Measured Wealth Private Client Group LLC bought a new position in shares of Morningstar during the 3rd quarter valued at about $26,000. Thurston Springer Miller Herd & Titak Inc. bought a new stake in shares of Morningstar in the 4th quarter worth approximately $25,000. IFP Advisors Inc raised its holdings in shares of Morningstar by 270.3% in the 2nd quarter. IFP Advisors Inc now owns 137 shares of the business services provider’s stock worth $43,000 after purchasing an additional 100 shares in the last quarter. Finally, V Square Quantitative Management LLC acquired a new stake in Morningstar during the fourth quarter valued at approximately $35,000. Institutional investors own 57.02% of the company’s stock.

About Morningstar

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.