Marsh & McLennan Companies (NYSE:MRSH) Downgraded by Citigroup to Neutral

Citigroup cut shares of Marsh & McLennan Companies (NYSE:MRSH) from a buy rating to a neutral rating in a research note issued to investors on Wednesday morning, MarketBeat reports. The brokerage currently has $200.00 target price on the financial services provider’s stock.

Other equities research analysts have also recently issued reports about the stock. Barclays cut their price target on shares of Marsh & McLennan Companies from $209.00 to $206.00 and set an “overweight” rating on the stock in a research report on Wednesday, April 8th. Morgan Stanley decreased their price objective on Marsh & McLennan Companies from $180.00 to $175.00 and set an “equal weight” rating for the company in a report on Monday, July 6th. Mizuho lifted their target price on Marsh & McLennan Companies from $194.00 to $197.00 and gave the company a “neutral” rating in a research report on Thursday, July 9th. Bank of America reduced their price target on Marsh & McLennan Companies from $181.00 to $174.00 and set an “underperform” rating for the company in a research report on Tuesday, April 14th. Finally, JPMorgan Chase & Co. raised their price target on Marsh & McLennan Companies from $206.00 to $212.00 and gave the company an “overweight” rating in a research note on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Marsh & McLennan Companies has a consensus rating of “Hold” and a consensus price target of $201.69.

Marsh & McLennan Companies Price Performance

Shares of MRSH stock opened at $176.27 on Wednesday. The firm has a market capitalization of $85.16 billion, a PE ratio of 21.55, a PEG ratio of 2.73 and a beta of 0.61. Marsh & McLennan Companies has a 12-month low of $156.60 and a 12-month high of $213.80. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.14 and a quick ratio of 1.11.

Marsh & McLennan Companies (NYSE:MRSH) last announced its earnings results on Tuesday, July 21st. The financial services provider reported $2.96 EPS for the quarter, topping the consensus estimate of $2.89 by $0.07. Marsh & McLennan Companies had a net margin of 14.24% and a return on equity of 32.67%. The firm had revenue of $7.28 billion for the quarter. The business’s quarterly revenue was up 6.2% on a year-over-year basis. Equities analysts predict that Marsh & McLennan Companies will post 10.36 EPS for the current fiscal year.

Marsh & McLennan Companies Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Thursday, July 23rd will be paid a $0.99 dividend. This represents a $3.96 annualized dividend and a dividend yield of 2.2%. This is a boost from Marsh & McLennan Companies’s previous quarterly dividend of $0.90. The ex-dividend date is Thursday, July 23rd. Marsh & McLennan Companies’s dividend payout ratio is currently 44.01%.

Insider Activity at Marsh & McLennan Companies

In related news, CEO John Q. Doyle sold 16,656 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $161.71, for a total transaction of $2,693,441.76. Following the sale, the chief executive officer owned 116,811 shares of the company’s stock, valued at $18,889,506.81. This represents a 12.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.38% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake in shares of Marsh & McLennan Companies by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 46,589,633 shares of the financial services provider’s stock worth $8,643,309,000 after acquiring an additional 387,100 shares during the period. State Street Corp acquired a new stake in Marsh & McLennan Companies during the 4th quarter valued at approximately $4,057,682,000. Capital International Investors bought a new position in Marsh & McLennan Companies during the 4th quarter worth approximately $3,482,557,000. Capital World Investors acquired a new position in shares of Marsh & McLennan Companies in the 4th quarter worth approximately $3,140,284,000. Finally, Wellington Management Group LLP bought a new stake in shares of Marsh & McLennan Companies in the 4th quarter valued at $2,967,927,000. Institutional investors own 87.99% of the company’s stock.

Marsh & McLennan Companies News Roundup

Here are the key news stories impacting Marsh & McLennan Companies this week:

• Positive Sentiment: Marsh & McLennan beat second-quarter earnings expectations, reporting $2.96 EPS versus consensus around $2.89, with revenue of $7.28 billion. The beat was driven by strength in Consulting and Risk & Insurance Services, which supports the view that core demand remains healthy. Article Title
• Positive Sentiment: Wells Fargo raised its price target on MRSH from $186 to $188, and Mizuho increased its target from $197 to $201. Those higher targets suggest analysts still see upside from current levels, even though both firms kept relatively cautious ratings. Article Title Article Title
• Neutral Sentiment: Several analysts remained cautious despite the earnings beat: Citigroup downgraded the stock from buy to neutral, and William Blair maintained a Hold view. That signals the results were solid, but not enough to fully reset valuation concerns. Article Title Article Title
• Neutral Sentiment: Management’s earnings call highlighted both growth and challenges, implying that while operating trends are improving, investors are still weighing execution and margin outlook. Article Title

About Marsh & McLennan Companies

Marsh & McLennan Companies (NYSE: MMC) is a global professional services firm headquartered in New York City that provides advice and solutions in the areas of risk, strategy and people. Founded in 1905, the company has grown into a diversified group of businesses focused on insurance brokerage and risk management, reinsurance, human capital and investment consulting, and management consulting. Its long history and scale position it as a prominent adviser to corporations, governments and other institutions seeking to manage risk and optimize human and financial capital.

The firm operates through several well-known subsidiaries and business units that specialize in distinct services.