Sumitomo Life Insurance Co. has reduced its holdings in MSCI Inc (NYSE: MSCI) by 4.3% during the second quarter of 2023, according to data from Holdings Channel. The firm now owns 4,124 shares of the technology company after selling 184 shares during this period, with its holdings valued at approximately $2,378,000 as reported in its latest SEC filing.
Several institutional investors have also adjusted their positions in MSCI recently. Mirae Asset Global Investments Co. Ltd. increased its stake by 10.0%, acquiring an additional 809 shares to hold a total of 8,882 shares, valued at $5,123,000. Additionally, Waypoint Wealth Counsel entered a new position worth $355,000, while Crestwood Advisors Group LLC raised its holdings by 6.5% to own 524 shares, worth $296,000. Callan Family Office LLC notably increased its share count by 92.9%, now holding 3,627 shares valued at $2,092,000. Currently, institutional investors and hedge funds collectively own 89.97% of MSCI’s stock.
Analyst Ratings and Stock Performance
Recent evaluations from equity analysts reflect a mixed outlook for MSCI’s stock. Barclays has raised its target price from $650.00 to $660.00 while maintaining an “overweight” rating. In contrast, Weiss Ratings downgraded its recommendation from “buy (B-)” to “hold (C+)” on October 25, 2023. UBS Group also increased its target price from $700.00 to $710.00, classifying the stock as a “buy.” Additionally, Seaport Res Ptn upgraded MSCI to a “strong-buy” rating.
As of now, the stock has received one “strong buy” rating, nine “buy” ratings, and four “hold” ratings from analysts, culminating in an average rating of “Moderate Buy” with a price target of $655.90 according to data from MarketBeat.com.
MSCI shares opened at $588.17 on the last trading day. The stock has a fifty-day moving average price of $561.84 and a two-hundred-day moving average of $560.43. Over the past year, MSCI has seen a low of $486.73 and a high of $642.45, with a market capitalization of $45.50 billion.
Quarterly Earnings and Future Outlook
On October 28, 2023, MSCI released its quarterly earnings report, revealing an earnings per share (EPS) of $4.47, surpassing the analysts’ expectations of $4.37 by $0.10. The company reported a net margin of 40.03% and a negative return on equity of 110.94%. Revenue for the quarter was $793.43 million, slightly below the anticipated $794.87 million. This marks a 9.5% increase in revenue compared to the same quarter last year, during which the company posted an EPS of $3.86. Analysts project that MSCI will report an EPS of 16.86 for the current fiscal year.
In addition to its earnings report, MSCI announced a quarterly dividend of $1.80 per share, scheduled for distribution on November 28, 2023. Shareholders of record as of November 14, 2023 will receive this dividend, equating to an annualized total of $7.20 and a dividend yield of 1.2%. The company’s payout ratio currently stands at 45.63%.
In a strategic move, MSCI’s Board of Directors also unveiled a $3.00 billion share buyback plan, allowing the firm to repurchase up to 7.1% of its shares through open market purchases. Such buyback initiatives often suggest that a company’s leadership believes its stock is undervalued.
As an influential provider of decision-support tools and solutions for the investment community, MSCI Inc. plays a critical role in managing investment processes globally, offering indexes for financial products, performance benchmarking, and portfolio construction.
