Morningstar, Inc. $MORN Stock Sold by Redmond Asset Management LLC

Redmond Asset Management LLC cut its stake in shares of Morningstar, Inc. (NASDAQ:MORN) by 70.1% in the 3rd quarter, Holdings Channel reports. The institutional investor owned 2,296 shares of the business services provider’s stock after selling 5,385 shares during the quarter. Redmond Asset Management LLC’s holdings in Morningstar were worth $436,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also made changes to their positions in MORN. Park Avenue Securities LLC raised its holdings in shares of Morningstar by 5.4% in the 3rd quarter. Park Avenue Securities LLC now owns 4,423 shares of the business services provider’s stock worth $841,000 after purchasing an additional 225 shares during the period. Signaturefd LLC lifted its stake in shares of Morningstar by 12.8% in the 3rd quarter. Signaturefd LLC now owns 662 shares of the business services provider’s stock valued at $126,000 after purchasing an additional 75 shares in the last quarter. Citizens Financial Group Inc. RI grew its holdings in shares of Morningstar by 36.3% during the 3rd quarter. Citizens Financial Group Inc. RI now owns 1,977 shares of the business services provider’s stock worth $376,000 after purchasing an additional 527 shares during the period. Simplicity Wealth LLC acquired a new stake in Morningstar during the 3rd quarter worth approximately $279,000. Finally, Root Financial Partners LLC purchased a new position in Morningstar in the third quarter valued at approximately $106,000. 57.02% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Morningstar news, Chairman Joseph Mansueto sold 5,659 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $218.84, for a total transaction of $1,238,415.56. Following the completion of the sale, the chairman owned 7,938,192 shares in the company, valued at $1,737,193,937.28. This trade represents a 0.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 86,500 shares of company stock worth $17,824,451. 38.80% of the stock is owned by company insiders.

Morningstar Stock Up 3.6%

Shares of NASDAQ:MORN opened at $222.54 on Friday. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 1.66. Morningstar, Inc. has a 52-week low of $141.49 and a 52-week high of $226.29. The company has a 50 day moving average of $205.72 and a two-hundred day moving average of $186.16. The company has a market capitalization of $8.35 billion, a price-to-earnings ratio of 17.23 and a beta of 1.02.

Morningstar (NASDAQ:MORN) last announced its earnings results on Wednesday, October 28th. The business services provider reported $3.48 earnings per share for the quarter, beating the consensus estimate of $3.04 by $0.44. Morningstar had a return on equity of 44.52% and a net margin of 17.00%. The company had revenue of $672.10 million during the quarter, compared to the consensus estimate of $664.75 million.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on MORN shares. Wall Street Zen upgraded shares of Morningstar from a “hold” rating to a “buy” rating in a report on Saturday, September 26th. BMO Capital Markets increased their price target on Morningstar from $230.00 to $237.00 and gave the company an “outperform” rating in a report on Tuesday, October 13th. UBS Group cut their price objective on Morningstar from $280.00 to $260.00 and set a “buy” rating on the stock in a research report on Tuesday, July 7th. Finally, Weiss Ratings upgraded Morningstar from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, October 9th. Two investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $235.67.

Key Stories Impacting Morningstar

Here are the key news stories impacting Morningstar this week:

• Positive Sentiment: Q3 earnings and revenue exceeded expectations. Morningstar reported revenue of $672.1 million, up 8.9% year over year and above the $664.75 million consensus estimate. Adjusted EPS of $3.48 also surpassed expectations of $3.04. Morningstar quarterly earnings report
• Positive Sentiment: Profitability improved sharply. Operating income rose 31.0% to $167.4 million, while reported diluted EPS increased 41.0% to $3.06. The quarterly margin reached approximately 28.3%, reinforcing the case that Morningstar is converting revenue growth into faster earnings growth. Morningstar Q3 revenue and earnings results
• Positive Sentiment: Growth remained broad-based. Morningstar Credit revenue increased 18.3%, while Morningstar Retirement revenue rose 21.3%. Morningstar Credit and the Morningstar Direct Platform were identified as the largest contributors to organic revenue growth. The company also repurchased approximately $100 million of stock during the quarter. Morningstar Q3 earnings growth announcement
• Positive Sentiment: UBS maintained a Buy rating and a $260 price target. Analyst Alex Kramm cited strong earnings and margin expansion, while raising the EPS outlook. The unchanged target implies additional upside based on the stock’s recent trading level. UBS Morningstar rating
• Neutral Sentiment: Morningstar’s fund-flow analysis showed $32 billion leaving U.S. stock funds in September, including $17 billion from large-growth funds. This highlights cautious investor behavior, but the data concerns the broader fund market rather than Morningstar’s operating performance. Morningstar fund-flow analysis
• Negative Sentiment: Insider activity remains a potential overhang: reported transactions showed no insider purchases and substantial selling over the past six months, including sales by Executive Chairman Joseph Mansueto. Operating cash flow and free cash flow also declined modestly year over year. Morningstar insider activity and cash flow report

Morningstar Company Profile

Morningstar, Inc is a global provider of independent investment research, data, and financial technology. The company serves asset managers, financial advisors, institutions, retirement plans, and individual investors with information designed to support investment analysis and decision-making.

Its products and services include research and ratings on mutual funds, exchange-traded funds, stocks, bonds, and other investments; portfolio analysis and planning tools; investment-management and advisory services; and software and data solutions for financial professionals and institutions.