In a series of transactions, Joseph D. Mansueto, the Executive Chairman of Morningstar, Inc. (NASDAQ:MORN), has sold a significant amount of company stock, totaling over $2.85 million. The sales were conducted at varying prices, ranging from $299.17 to $301.27 per share.
According to the latest filings, Mansueto completed multiple stock sales on May 17 and May 20. On the first date, he sold 3,587 shares at an average price of $299.37 and 698 shares at an average price of $300.16. On May 20, he continued with the sale of 2,538 shares at an average price of $299.17, 1,613 shares at an average price of $300.45, and 1,083 shares at an average price of $301.27.
The sales were part of a prearranged trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. This plan was adopted by Mansueto on November 17, 2023.
Following these transactions, Mansueto still holds a significant number of shares in Morningstar, directly and indirectly. The direct holdings that followed the transactions amounted to 10,687,931 shares, while additional shares are held indirectly through trusts for the benefit of Mansueto and his children, with Mansueto serving as trustee or his spouse acting in that capacity.
Investors often keep an eye on insider transactions as they can provide insights into an insider’s view of the company's value. The recent sales by Morningstar's Executive Chairman are notable both for their size and for their timing, as they were executed according to a trading plan set up in the previous year.
InvestingPro Insights
As Morningstar's Executive Chairman Joseph Mansueto divests a portion of his holdings, investors considering the company's stock can look to Morningstar, Inc.'s (NASDAQ:MORN) current financial metrics for further insights. Morningstar's market capitalization stands at a robust $12.83 billion, reflecting its significant presence in the market. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is high at 59.85, suggesting that investors are willing to pay a premium for Morningstar shares. This aligns with one of the InvestingPro Tips indicating that the company is trading at a high earnings multiple.
Moreover, Morningstar has demonstrated a commitment to rewarding shareholders, maintaining dividend payments for 15 consecutive years, which is another key point from the InvestingPro Tips. The company's dividend yield stands at 0.55%, with a recent dividend growth rate of 8.0%. This consistent return to shareholders may be particularly attractive to income-focused investors.
For those looking at longer-term performance, Morningstar has shown a high return over the last year, with a 1 Year Price Total Return of 51.46%. This impressive return is part of a broader pattern of strong performance, as the company has also delivered robust returns over the last five and ten years, further highlighted in the InvestingPro Tips.
For investors seeking a more comprehensive analysis of Morningstar, Inc., additional InvestingPro Tips are available, which delve deeper into the company's valuation and profitability. To explore these insights and refine your investment strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are a total of 8 additional InvestingPro Tips listed in InvestingPro that can provide further guidance on Morningstar's financial health and investment potential.
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