Zacks Investment Research Downgrades Marsh & McLennan Cos. (MMC) to Sell
Marsh & McLennan Cos. (NYSE:MMC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday.
According to Zacks, “Marsh & McLennan’s exposure to currency volatility due to huge international presence, and integration risks from acquisitions raises concern. However, the company should benefit from improved pricing, stable ratings, strong capital management and expense control initiatives. Its segments Risk and Insurance Services and Consulting are also performing well. The company's effective capital management via share buyback and dividend payment also remains impressive. Also its strategic acquisitions and restructuring initiatives have generated new clients will generate long term growth. Our proven model cannot conclusively say if Marsh & McLennan will beat expectation when it reports third quarter results on Oct 25. This is because Zacks Rank #4 that decreases predictive power of a beat when combined with Earnings ESP of 0.00% makes prediction difficult.”
Several other equities research analysts have also recently weighed in on MMC. Barclays PLC reissued an “overweight” rating and set a $71.00 price target on shares of Marsh & McLennan Cos. in a research report on Tuesday, June 21st. BMO Capital Markets reissued a “market perform” rating and set a $73.00 price target (down previously from $77.00) on shares of Marsh & McLennan Cos. in a research report on Tuesday, July 12th. Deutsche Bank AG increased their price target on shares of Marsh & McLennan Cos. from $67.00 to $71.00 and gave the company a “buy” rating in a research report on Friday, July 29th. Keefe, Bruyette & Woods increased their price target on shares of Marsh & McLennan Cos. from $69.00 to $71.00 and gave the company an “outperform” rating in a research report on Friday, July 29th. Finally, Credit Suisse Group AG set a $55.00 price target on shares of Marsh & McLennan Cos. and gave the company a “hold” rating in a research report on Monday, September 12th. One research analyst has rated the stock with a sell rating, three have issued a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company. The company has an average rating of “Buy” and a consensus price target of $69.18.
This story is the sole property of American Banking News and it was originally published by American Banking News. If you are reading this story on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. The original version of this article is available at http://www.americanbankingnews.com/2016/10/17/zacks-investment-research-downgrades-marsh-mclennan-cos-mmc-to-sell.html
Marsh & McLennan Cos. (NYSE:MMC) traded down 0.52% during midday trading on Monday, hitting $65.65. 717,830 shares of the stock traded hands. Marsh & McLennan Cos. has a 52 week low of $50.81 and a 52 week high of $68.69. The stock’s 50-day moving average price is $66.92 and its 200-day moving average price is $65.53. The stock has a market capitalization of $34.02 billion, a P/E ratio of 20.97 and a beta of 0.93.
Marsh & McLennan Cos. (NYSE:MMC) last announced its quarterly earnings results on Thursday, July 28th. The company reported $0.91 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.90 by $0.01. The business earned $3.40 billion during the quarter, compared to analysts’ expectations of $3.38 billion. Marsh & McLennan Cos. had a net margin of 12.54% and a return on equity of 25.30%. The firm’s revenue for the quarter was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.80 EPS. Equities research analysts expect that Marsh & McLennan Cos. will post $3.38 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 15th. Investors of record on Tuesday, October 11th will be paid a $0.34 dividend. The ex-dividend date of this dividend is Thursday, October 6th. This represents a $1.36 annualized dividend and a dividend yield of 2.06%. Marsh & McLennan Cos.’s payout ratio is 43.45%.
In related news, Chairman Alexander S. Moczarski sold 22,230 shares of the stock in a transaction dated Monday, August 15th. The shares were sold at an average price of $67.41, for a total value of $1,498,524.30. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 1.51% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently added to or reduced their stakes in MMC. Washington Trust Bank raised its stake in Marsh & McLennan Cos. by 2.9% in the second quarter. Washington Trust Bank now owns 1,685 shares of the company’s stock worth $115,000 after buying an additional 48 shares in the last quarter. BlueMountain Capital Management LLC purchased a new stake in Marsh & McLennan Cos. during the first quarter worth $121,000. Financial Architects Inc raised its stake in Marsh & McLennan Cos. by 326.2% in the second quarter. Financial Architects Inc now owns 2,144 shares of the company’s stock worth $146,000 after buying an additional 1,641 shares in the last quarter. Integrated Investment Consultants LLC raised its stake in Marsh & McLennan Cos. by 10.7% in the second quarter. Integrated Investment Consultants LLC now owns 2,356 shares of the company’s stock worth $161,000 after buying an additional 228 shares in the last quarter. Finally, First Allied Advisory Services Inc. purchased a new stake in Marsh & McLennan Cos. during the second quarter worth $201,000. Institutional investors and hedge funds own 85.97% of the company’s stock.
Marsh & McLennan Cos. Company Profile
Marsh & McLennan Companies, Inc is a professional services firm offering clients advice and solutions in risk, strategy and people. The Company is the parent company of various specialty consultants, including Marsh, an insurance broker, intermediary and risk advisor; Guy Carpenter, a risk and reinsurance specialist; Mercer, a provider of human resource (HR) and related financial advice and services, and Oliver Wyman Group, a management, economic and brand consultancy.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Marsh & McLennan Cos. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Marsh & McLennan Cos. and related companies with MarketBeat.com's FREE daily email newsletter.