New York State Common Retirement Fund Trims Stake in Morningstar Inc. as Company Sees Insider Trading Activity
Date: August 2, 2023
In the first quarter of this year, the New York State Common Retirement Fund made a noteworthy decision to reduce its position in Morningstar, Inc. (NASDAQ:MORN) by a significant 44.2%, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund sold approximately 43,026 shares during this period, leaving it with 54,362 shares of the business services provider’s stock. As per the latest SEC filing, these remaining shares are valued at $11,037,000 and contribute to approximately 0.13% of Morningstar’s total worth.
The reduction in stake by the New York State Common Retirement Fund came amidst some noteworthy insider trading activity within Morningstar Inc., further adding to market observers’ curiosity regarding the company’s future trajectory. On July 27th, Director Gail S. Landis completed a transaction involving the sale of 395 shares of Morningstar stock at an average price of $225.00 per share. This single transaction resulted in a total transaction value of $88,875.00.
Following this recent sale, Director Landis now possesses a remaining ownership stake of only 5,727 shares in Morningstar Inc., currently valued at $1,288,575. This information was disclosed in a filing with the Securities & Exchange Commission and is available for viewing through their official website.
Adding intrigue to these developments is another significant insider sale which transpired on May 30th earlier this year by Chairman Joseph D Mansueto himself. In that particular instance; Chairman Mansueto sold an impressive total of 12,650 shares at an average price of $203.99 per share resulting in eye-watering proceeds totaling $2,580,473.50.
After this substantial offering, Chairman Mansueto now maintains a reduced ownership stake of 11,455,575 shares in the company. The valuation of his remaining holdings is an impressive $2,336,822,744.25 as per the most recent filing with the Securities & Exchange Commission.
Unsurprisingly, given this flurry of insider activity in Morningstar Inc., it is revealed that insiders have collectively sold 92,030 shares worth a staggering $18,349,823 in just the last quarter alone. Remarkably and perhaps opportunistically so, insiders continue to retain nearly 40% of the company’s total outstanding stock.
As we turn our focus towards Morningstar Inc.’s financial performance in relation to these recent developments and insider trading activity, it becomes evident that market participants should exercise increased attention. Morningstar Inc. opened at $227.90 on August 2nd and faces an intriguing landscape moving forward.
In terms of its stock price performance over the past year, Morningstar has observed a low of $163.28 and a high of $261.16. Such significant fluctuations showcase both lucrative opportunities for investors and potential risks when it comes to future investment decisions.
Additionally, the business services provider seems to possess a steady grip on its liquidity position with a quick ratio and current ratio situated at 0.93 each. Furthermore, with a debt-to-equity ratio of 0.91 at present, Morningstar appears to adopt a balanced approach to manage its financial obligations effectively.
Overall, Morningstar Inc., boasting a market capitalization figure amounting to approximately $9.72 billion and carrying a relatively high price-to-earnings ratio of 430.01 coupled with a beta rating reflecting moderate volatility at 1.16 needs careful consideration from investors seeking long-term value appreciation.
Given all these factors combined—ranging from insider trading activity to financial statistics—investors will closely monitor Morningstar Inc. as it navigates a landscape full of both potential opportunities and risks, poised to leave its mark on the business services market moving forward.
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Morningstar Draws Institutional Investors with Steady Dividend Payouts
Morningstar Attracts Institutional Investors while Holding Steady Dividend Payout
Date: August 2, 2023
Institutional investors continue to exhibit strong interest in Morningstar, an established business services provider. Recent changes in positions by hedge funds and other institutional investors have drawn attention to the stock. This article explores the investment activities surrounding Morningstar, including stake acquisitions and dividend payouts.
Institutional Investors’ Acquisitions:
Benjamin Edwards Inc., a notable hedge fund, recently entered the market by purchasing a new stake in shares of Morningstar during the fourth quarter of the previous year. The value of this acquisition amounted to $27,000. Notably, Whittier Trust Co. significantly increased its position in Morningstar’s shares by 76.3% during the same period through an additional acquisition of 61 shares, which now brings its ownership to 141 shares worth $31,000.
Meeder Asset Management Inc., another prominent institutional investor, made an astute move by increasing its stake in Morningstar shares by 7,500.0% during the fourth quarter of last year. This remarkable surge resulted from Meeder Asset Management’s additional purchase of 150 shares worth approximately $33,000.
CWM LLC also demonstrated its confidence in Morningstar by boosting its position in the company’s shares by 32.6% during Q1 of this year. With an accumulated portfolio currently amounting to 293 shares valued at $59,000 after acquiring an extra 72 shares.
Quadrant Capital Group LLC rounds up our list of institutional investors who have shown interest in Morningstar’s stocks with a growth rate at their stake increase reaching up to 12.9% during the fourth quarter last year. Quadrant Capital Group LLC added another 49 shares valued at $93,000 to their existing holdings.
Collectively these investments demonstrate a significant level of trust in Morningstar’s potential and market performance, as institutional investors currently own about 55.37% of the company’s stock.
Financial Research Rating:
StockNews.com, a reputable financial research firm, recently initiated coverage on Morningstar shares. In their research note on Thursday, May 18th, StockNews.com assigned a “hold” rating for the company. This rating indicates that although Morningstar shows stability, there might be limited immediate upside potential.
Dividend Announcement and Yield:
Alongside these ownership developments, Morningstar announced its quarterly dividend with an ex-dividend date of July 6th and a record date of July 7th. Shareholders received a dividend payout of $0.375 per share on Monday, July 31st. This translates to an annualized dividend of $1.50 and delivers a dividend yield of 0.66%.
Morningstar’s Payout Ratio Perspective:
It is crucial to analyze the payout ratio when assessing the sustainability of dividends. Morningstar currently has a high payout ratio at approximately 283.02%. While this may raise concerns among some investors due to the significant portion of earnings being distributed as dividends, it can also indicate the company’s commitment to returning capital to shareholders.
Conclusion:
Morningstar continues to capture the attention of institutional investors through recent stake acquisitions by prominent hedge funds and asset management firms. Although StockNews.com has suggested a “hold” rating for the company based on their research note in May earlier this year, Morningstar provides stable dividends that attract income-oriented investors with its annualized dividend payout ratio reaching $1.50 per share amidst generating interest from institutional buyers.
As we move forward into the following quarter, it will be interesting to observe how these developments unfold for both shareholders and institutional investors while keeping an eye on any additional changes in positions from influential market participants.
