CHICAGO—Joseph Mansueto, Executive Chairman of Morningstar, Inc. (NASDAQ:MORN), has sold a significant portion of his holdings in the company, according to a recent SEC filing. The transactions, executed on November 6 and 7, involved the sale of 8,349 shares of common stock, amounting to approximately $3.52 million.
The sales were conducted at various prices, ranging from $336.39 to $345.90 per share. Following these transactions, Mansueto continues to hold 10,817,645 shares directly and indirectly through trusts. The sales were made under a pre-arranged trading plan adopted in November 2023, as noted in the filing.
In other recent news, Morningstar, Inc. announced that CFO Jason Dubinsky will step down at year-end. This coincides with the company's third-quarter earnings report showcasing sustained growth and disciplined cost management. Analyst firms have had differing views on Morningstar, with Redburn-Atlantic downgrading the stock from Buy to Neutral, citing slower licensed-based revenue growth and lower productivity. Conversely, UBS initiated coverage with a Buy rating, seeing potential for significant earnings improvement and forecasting a 17% higher earnings per share in 2026 than the consensus.
In terms of mergers, Morningstar Wealth entered a strategic alliance with AssetMark, Inc., resulting in AssetMark's acquisition of approximately $12 billion in assets from Morningstar Wealth's Turnkey Asset Management Platform. Other developments include Morningstar's commitment to maintaining its quarterly dividend at 40.5 cents per share. However, the company has also acknowledged potential risks and uncertainties such as maintaining brand reputation, mitigating cybersecurity threats, and adapting to regulatory changes. These are recent developments that investors should be aware of.
InvestingPro Insights
While Joseph Mansueto's recent stock sale might raise eyebrows, Morningstar's financial metrics and market position paint a picture of a company on solid footing. According to InvestingPro data, Morningstar boasts a market capitalization of $14.98 billion and has demonstrated strong revenue growth, with a 12.55% increase over the last twelve months as of Q3 2024.
The company's financial health is further underscored by its profitability. Morningstar's gross profit margin stands at an impressive 60.91%, indicating efficient cost management. Moreover, the company has maintained dividend payments for 15 consecutive years, with a current dividend yield of 0.47%, reflecting a commitment to shareholder returns.
InvestingPro Tips highlight that Morningstar is trading near its 52-week high, with a one-year price total return of 31.35%. This performance suggests investor confidence in the company's prospects. Additionally, analysts predict that Morningstar will remain profitable this year, aligning with the company's track record of consistent earnings.
For investors seeking a deeper understanding of Morningstar's potential, InvestingPro offers 11 additional tips, providing a comprehensive analysis of the company's financial health and market position.
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