Msci’s (MSCI) “Hold” Rating Reaffirmed at Zacks Investment Research
Zacks Investment Research reiterated their hold rating on shares of Msci (NYSE:MSCI) in a research note issued to investors on Wednesday morning.
According to Zacks, “MSCI’s third-quarter results were impressive as both earnings and revenues jumped on a year-over-year basis driven by strong growth in asset-based fees and recurring subscriptions. Strong increase in new recurring subscriptions sales reflected solid demand for the company’s solutions. However, increasing demand for lower fee products from other index providers that are targeting new inflows is a headwind for the company. Additionally, higher cancellations in the Index segment is a concern. Nevertheless, the company is benefiting from the growth of equity ETF-related revenues, non-ETF passive revenues, and exchange-traded futures and options products. The company is also gaining from strong traction in client segments, like wealth management, and banks and broker dealers. Shares have outperformed the industry on a year-to-date basis.”
Several other research analysts also recently commented on MSCI. Barclays cut their price objective on shares of Msci from $175.00 to $165.00 and set an equal weight rating for the company in a report on Friday, November 2nd. BMO Capital Markets assumed coverage on shares of Msci in a report on Wednesday, July 25th. They issued an outperform rating and a $198.00 price objective for the company. Morgan Stanley raised their price objective on shares of Msci from $168.00 to $174.00 and gave the stock an equal weight rating in a report on Friday, August 3rd. Finally, Cantor Fitzgerald raised their price objective on shares of Msci to $192.00 and gave the stock an overweight rating in a report on Friday, August 3rd. Four analysts have rated the stock with a hold rating and five have given a buy rating to the stock. The stock has an average rating of Buy and a consensus price target of $175.29.
Msci (NYSE:MSCI) last released its quarterly earnings data on Thursday, November 1st. The technology company reported $1.35 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.29 by $0.06. The company had revenue of $357.90 million during the quarter, compared to the consensus estimate of $359.91 million. Msci had a net margin of 29.87% and a return on equity of 121.45%. Msci’s revenue for the quarter was up 11.1% on a year-over-year basis. During the same period last year, the firm earned $1.00 EPS. Equities analysts expect that Msci will post 5.27 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, November 30th. Shareholders of record on Friday, November 16th will be paid a $0.58 dividend. This represents a $2.32 annualized dividend and a yield of 1.53%. The ex-dividend date of this dividend is Thursday, November 15th. Msci’s dividend payout ratio is presently 58.29%.
Hedge funds and other institutional investors have recently bought and sold shares of the business. Flagship Harbor Advisors LLC purchased a new stake in shares of Msci during the 2nd quarter valued at $114,000. Harvest Fund Management Co. Ltd raised its position in shares of Msci by 113.9% during the 3rd quarter. Harvest Fund Management Co. Ltd now owns 800 shares of the technology company’s stock valued at $142,000 after buying an additional 426 shares in the last quarter. Smithfield Trust Co. raised its position in shares of Msci by 2,573.3% during the 2nd quarter. Smithfield Trust Co. now owns 802 shares of the technology company’s stock valued at $133,000 after buying an additional 772 shares in the last quarter. Cerebellum GP LLC purchased a new stake in shares of Msci during the 3rd quarter valued at $147,000. Finally, Rampart Investment Management Company LLC purchased a new stake in shares of Msci during the 2nd quarter valued at $152,000. Institutional investors and hedge funds own 92.30% of the company’s stock.
Msci Company Profile
MSCI Inc, together with its subsidiaries, provides investment decision support tools for the clients to manage their investment processes worldwide. The company operates through four segments: Index, Analytics, ESG, and Real Estate. The Index segment primarily provides equity indexes for use in various areas of the investment process, including index-linked product creation and performance benchmarking, as well as portfolio construction and rebalancing, and asset allocation.
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