CHICAGO—Joseph D. Mansueto, the Executive Chairman of Morningstar, Inc. (NASDAQ:MORN), recently sold shares of the company totaling approximately $1.04 million, according to a regulatory filing. The transactions occurred on November 14 and 15, 2024, and involved multiple sales of Morningstar's common stock.
The shares were sold at prices ranging from $342.13 to $346.9881 per share. Following these transactions, Mansueto retains direct ownership of 10,788,378 shares of Morningstar. Additionally, he holds 4,414,795 shares in grantor retained annuity trusts and 150,000 shares in trusts for the benefit of his children.
These sales were conducted under a pre-established Rule 10b5-1 trading plan, which allows company insiders to set up a schedule for selling stocks to avoid concerns about insider trading.
In other recent news, Morningstar, Inc. has seen several significant developments. The company's recent SEC filing disclosed a detailed investor Q&A, demonstrating its commitment to transparency. Key topics addressed in the Q&A included brand management, cybersecurity measures, regulatory compliance, and the impact of artificial intelligence on operations.
Morningstar's Chief Financial Officer, Jason Dubinsky, announced his departure at the end of the year, initiating a search for his successor. In the realm of financial performance, the company's third-quarter earnings report indicated ongoing growth and margin expansion.
Analysts have shown mixed responses, with Redburn-Atlantic downgrading Morningstar's stock from Buy to Neutral, while UBS initiated coverage with a Buy rating, citing potential for significant earnings improvement.
In terms of mergers and acquisitions, Morningstar Wealth embarked on 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.
Lastly, Morningstar has reiterated its commitment to maintaining its quarterly dividend at 40.5 cents per share. These are recent developments, and as always, the company has acknowledged potential risks and uncertainties.
InvestingPro Insights
While Joseph D. Mansueto's recent stock sale may raise eyebrows, Morningstar's financial metrics and market position suggest a company on solid footing. According to InvestingPro data, Morningstar boasts a market capitalization of $14.31 billion and has demonstrated strong revenue growth of 12.55% over the last twelve months as of Q3 2024. The company's gross profit margin stands at an impressive 60.91%, indicating efficient operations and pricing power.
InvestingPro Tips highlight Morningstar's commitment to shareholder returns, noting that the company has maintained dividend payments for 15 consecutive years and has raised its dividend for 3 consecutive years. This consistent dividend policy aligns with Morningstar's profitability, as analysts predict the company will remain profitable this year.
Despite trading at a high P/E ratio of 43.68, which might seem expensive at first glance, Morningstar's PEG ratio of 0.12 suggests that the stock may actually be undervalued relative to its earnings growth potential. This could explain why the company's stock price has seen a 24.04% total return over the past year.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights, with 7 more tips available for Morningstar on the platform.
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