Marsh & McLennan Companies, Inc. (NYSE:MMC) has been downgraded by Raymond James on September 25 which now rates the stock as Underperform compared with Outperform rating suggested in the past. Analysts at Credit Suisse, started covering the stock on August 07 with a Neutral rating. Analysts at Goldman, made their first call about the stock on December 04, recommending it is Neutral.
Marsh & McLennan Companies, Inc. (MMC) hit an intraday high Thursday at $85.88. The shares finished at $85.23, after trading as low as $83.32 earlier in the session. It dropped -1.79% in recent trade and currently has a stock-market value of $42.96B. Trading activity significantly improved as the volume at ready counter increased to 2,960,372 shares versus 1,913,055 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,887,370 shares. The stock is now 10.53% above against its bear-market low of $77.11 on October 24, 2018. It has retreated -5.12% since it’s 52-week high of $89.59 reached in December. Now the market price is up 0.26% on the year and up 4.72% YTD.
MMC’s 50 day simple moving average (SMA 50) price is $84.17 and its 200-day simple moving average (SMA 200) price is $83.45. The company’s stock currently has a total float of 502.66M shares. Its weekly volatility is hovering around 2.19% and felt 1.72% volatility in price over a month. On the upside, the share price will test short term resistance at around $86.3. On a downside, the stock is likely to find some support, which begins at $83.74. The failure to get near-term support could push it to $82.25.
Separately, it has been reported that multiple insider activity took place at Marsh & McLennan Companies, Inc. (MMC). SVP, Chief Information Officer Gilbert E Scott sold 80,646 shares for $43,197 in transaction occurred on 2018/08/29. After making this transaction, the SVP, Chief Information Officer owns a direct stake of 6,825,877 shares, worth $3,681,680, as per the last closing price. On 2018/03/05 Glaser Daniel S, President and CEO, MMC at MMC, dumped 41,504 shares at an average price of $81.88 per share. The selling total is valued at $23,761,442.
EVP and General Counsel, Beshar Peter J had divested 10,567 shares for $240,857 through a trade on 2018/03/05. Following this activity, the insider holds 863,852 shares worth $20,528,242 as of recent close. Wall Street’s most bullish Marsh & McLennan Companies, Inc. (NYSE:MMC) analysts are predicting the share price to blow past $98 per share during the next 12 months. The current median share price forecast by them is $90.5, suggesting that the stock could increase 6.18% in that time frame. The average price target of $90.71 calls for a nearly 6.43% increase in the stock price.
When looking at valuations, Marsh & McLennan Companies, Inc. (MMC) has a cheap P/E of 22.18x as compared to industry average of 25.52x. Moreover, it trades for 18.26 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 5.76x price/book and 2.88x price/sales. Compared to others, Marsh & McLennan Companies, Inc. is in a different league with regards to profitability, having net margins of 10.2%. To put some perspective around this, the industry’s average net margin is 10.14%. MMC’s ROE is 20%, which is also considerably better than the industry’s ROE of 11.42%. It’s also very liquid in the near term, with a current ratio of 1.3. The stock has a debt/capital of 0.83.
Shares of Marsh & McLennan Companies, Inc. (MMC) have gained 12.4% since the company’s last earnings report. Over the past 12 fiscal quarters, Marsh & McLennan Companies, Inc. (NYSE:MMC) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 1 quarters (8%), whereas at 3 occasion EPS met analyst expectations. MMC last reported earnings on October 25, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.78 per share, -83.08% change on the same period last year. That was better than consensus for $0.75. Revenue for the recent quarter stood at $3.5 billion, up 5% on last year and above the $3.45 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $3.65 billion to $3.81 billion, which should be compared with $3.74 billion generated last year. EPS is seen in a range of $0.95 to $1.11, against the $1.06 reported a year ago.