Joseph D. Mansueto, Executive Chairman of Morningstar, Inc. (NASDAQ:MORN), has sold a notable portion of his holdings in the company, according to a recent SEC filing. On November 1, Mansueto sold a total of 9,062 shares of Morningstar common stock, amounting to approximately $2.97 million. The shares were sold at prices ranging from $327.5841 to $329.4627 per share.
Following these transactions, Mansueto still holds a substantial number of shares. He directly owns 10,845,718 shares and indirectly holds additional shares through trusts. The sales were conducted under a pre-arranged trading plan, as part of a Rule 10b5-1 trading arrangement established in November 2023.
In other recent news, Morningstar, Inc. announced that CFO Jason Dubinsky is set to step down at the end of the year. The company has begun the succession process to find Dubinsky's replacement. Morningstar also reported ongoing growth and margin expansion in its third-quarter earnings report. In terms of analyst reviews, Redburn-Atlantic downgraded Morningstar's stock from Buy to Neutral, citing slower licensed-based revenue growth and lower productivity compared to industry peers. However, UBS initiated coverage on Morningstar with a Buy rating, forecasting Morningstar's 2026 earnings per share at $11.09, a figure 17% higher than the consensus among published analysts.
In merger news, 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. This move allows Morningstar Wealth to serve as a third-party strategist on the AssetMark platform. The company also maintained its quarterly dividend at 40.5 cents per share. These recent developments underscore Morningstar's commitment to enhancing its services and maintaining transparency with its shareholders.
InvestingPro Insights
While Joseph D. Mansueto's recent sale of Morningstar shares may raise eyebrows, it's important to consider the broader financial picture of the company. According to InvestingPro data, Morningstar boasts a market capitalization of $14.15 billion and has demonstrated strong revenue growth of 12.55% over the last twelve months as of Q3 2024. This growth is complemented by a robust EBITDA growth of 68.01% over the same period, indicating the company's ability to increase its operational efficiency.
InvestingPro Tips reveal that Morningstar has maintained dividend payments for 15 consecutive years and has raised its dividend for 3 consecutive years. This consistent dividend policy, coupled with a current dividend yield of 0.49%, suggests a commitment to returning value to shareholders despite executive stock sales.
Moreover, Morningstar's P/E ratio of 43.13 might seem high at first glance, but an InvestingPro Tip indicates that the company is actually trading at a low P/E ratio relative to its near-term earnings growth. This could imply that the stock is potentially undervalued considering its growth prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into Morningstar's financial health and market position.
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