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

Marsh & McLennan Companies, Inc. (NYSE:MMC) gapped up prior to trading on Thursday following a better than expected earnings announcement. 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 trading hands.

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 net margin of 16.52% and a return on equity of 33.72%. The company had revenue of $6.50 billion during the quarter, compared to the consensus estimate of $6.38 billion. During the same quarter in the prior year, the firm earned $2.53 EPS. The company’s revenue was up 9.7% compared to the same quarter last year.

Marsh & McLennan Companies Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, May 15th. Stockholders of record on Thursday, April 4th will be paid a dividend of $0.71 per share. The ex-dividend date is Wednesday, April 3rd. This represents a $2.84 annualized dividend and a dividend yield of 1.41%. Marsh & McLennan Companies’s dividend payout ratio (DPR) is 37.72%.

Analyst Ratings Changes

Several research analysts have recently commented on MMC shares. Piper Sandler lowered shares of Marsh & McLennan Companies from an “overweight” rating to a “neutral” rating and set a $211.00 price target on the stock. in a research note on Wednesday. Keefe, Bruyette & Woods increased their price target on shares of Marsh & McLennan Companies from $185.00 to $188.00 and gave the stock an “underperform” rating in a research note on Wednesday, April 10th. 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 price target on the stock. Royal Bank of Canada increased their price target on shares of Marsh & McLennan Companies from $200.00 to $208.00 and gave the stock a “sector perform” rating in a research note on Friday, January 26th. Finally, JPMorgan Chase & Co. increased their price target on shares of 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 issued a buy rating to the company. According to MarketBeat.com, Marsh & McLennan Companies currently has a consensus rating of “Hold” and an average target price of $204.73.

Insiders Place Their Bets

In other Marsh & McLennan Companies news, VP Stacy Mills sold 1,461 shares of the firm’s stock in a transaction 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 sale, the vice president now directly owns 2,923 shares in the company, valued at approximately $611,374.68. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other Marsh & McLennan Companies news, VP Stacy Mills sold 1,461 shares of the firm’s stock in a transaction 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 sale, the vice president now directly owns 2,923 shares in the company, valued at approximately $611,374.68. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Mark C. Mcgivney sold 12,494 shares of the firm’s stock in a transaction on Monday, March 4th. The stock was sold at an average price of $200.79, for a total transaction of $2,508,670.26. Following the completion of the sale, 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 in the last ninety days. Insiders own 0.30% of the company’s stock.

Institutional Trading of Marsh & McLennan Companies

Several institutional investors have recently made changes to their positions in the business. Dixon Mitchell Investment Counsel Inc. acquired a new stake in shares of Marsh & McLennan Companies during the 1st quarter valued at about $35,000. Main Line Retirement Advisors LLC boosted its position in shares of Marsh & McLennan Companies by 17.2% during the 1st quarter. Main Line Retirement Advisors LLC now owns 1,417 shares of the financial services provider’s stock valued at $292,000 after acquiring an additional 208 shares in the last quarter. Hexagon Capital Partners LLC boosted its position in shares of Marsh & McLennan Companies by 19.7% during the 1st quarter. Hexagon Capital Partners LLC now owns 1,339 shares of the financial services provider’s stock valued at $276,000 after acquiring an additional 220 shares in the last quarter. Miracle Mile Advisors LLC boosted its position in shares of Marsh & McLennan Companies by 1.5% during the 1st quarter. Miracle Mile Advisors LLC now owns 13,613 shares of the financial services provider’s stock valued at $2,804,000 after acquiring an additional 198 shares in the last quarter. Finally, Breakwater Capital Group acquired a new stake in shares of Marsh & McLennan Companies during the 1st quarter valued at about $296,000. 87.99% of the stock is currently owned by institutional investors and hedge funds.

Marsh & McLennan Companies Stock Performance

The firm has a market capitalization of $99.52 billion, a price-to-earnings ratio of 26.78, a price-to-earnings-growth ratio of 3.56 and a beta of 0.90. 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 50-day moving average price is $202.77 and its two-hundred day moving average price is $196.72.

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.