Capital World Investors has increased its holdings in Marsh & McLennan Companies, Inc. (NYSE: MRSH), acquiring an additional 92,767 shares during the third quarter of 2024. As reported in a recent filing with the Securities and Exchange Commission (SEC), the institutional investor now owns a total of 17,702,898 shares, representing approximately 3.61% of the financial services provider’s stock. This stake is valued at around $3.57 billion.
Several other institutional investors have also adjusted their positions in Marsh & McLennan. Notably, Brighton Jones LLC expanded its investment by 51.2% in the fourth quarter, bringing its total to 8,738 shares worth $1.86 million. Similarly, Bison Wealth LLC increased its stake by 39.6%, now holding 3,064 shares valued at $651,000. Other notable investors include Wedbush Securities Inc., which raised its position by 60.8% to 1,661 shares worth $363,000, and AE Wealth Management LLC, which lifted its stake by 12.7% to 3,959 shares valued at $866,000.
As of now, institutional investors collectively own approximately 87.99% of Marsh & McLennan’s stock.
Insider Transactions and Financial Performance
In related news, CEO John Q. Doyle sold 16,655 shares on March 4, 2024, for a total of $3.05 million, at an average price of $183.30 per share. Following this transaction, Doyle retains 116,811 shares, which are valued at around $21.41 million. This sale represents a 12.48% decrease in his holdings. Company insiders own 0.35% of Marsh & McLennan’s stock.
Marsh & McLennan announced its quarterly earnings results on January 29, 2024, reporting earnings per share (EPS) of $2.12, exceeding analysts’ expectations of $1.97 by $0.15. The company achieved a net margin of 15.42% and a return on equity of 31.60%. Revenue for the quarter reached $6.60 billion, surpassing the anticipated $6.52 billion. This marks an 8.7% increase in revenue year-over-year.
Analysts project that Marsh & McLennan will post an EPS of $9.61 for the current fiscal year.
Dividend Announcement and Analyst Ratings
The company also declared a quarterly dividend of $0.90 per share, set to be paid on May 15, 2024. Shareholders on record as of April 9, 2024, will receive this dividend, which translates to an annualized payout of $3.60 and a yield of 2.0%. The current dividend payout ratio stands at 42.70%.
In recent analyst reports, several brokerages have adjusted their price targets for Marsh & McLennan. Morgan Stanley raised its price objective from $190.00 to $195.00, maintaining an “equal weight” rating. Royal Bank of Canada reiterated a “sector perform” rating with a target of $200.00, while Mizuho set a target price of $199.00, down from $213.00. Wells Fargo & Company increased its price target to $203.00, also giving the stock an “equal weight” rating. Barclays upped its price objective from $206.00 to $210.00, rating the company as “overweight.”
Overall, one analyst rates the stock as a Strong Buy, six as Buy, eleven as Hold, and one as Sell. According to data from MarketBeat, Marsh & McLennan currently holds a consensus rating of “Hold” with an average price target of $216.18.
Founded in 1905 and headquartered in New York City, Marsh & McLennan Companies is a global professional services firm offering advice and solutions in the areas of risk, strategy, and people. The firm operates through several subsidiaries and business units, specializing in diverse services including insurance brokerage, risk management, and management consulting. Its extensive history and scale position it as a key adviser to corporations, governments, and other institutions.
