CHICAGO—Joseph D. Mansueto, Executive Chairman of Morningstar, Inc. (NASDAQ:MORN), recently sold shares of the company's common stock valued at approximately $4.6 million. The transactions, which took place on November 20 and 21, involved a total of 13,131 shares sold at prices ranging from $334.3854 to $340.371 per share.
Following these transactions, Mansueto retains direct ownership of 10,765,410 shares in Morningstar. The sales were executed under a Rule 10b5-1 trading plan, which Mansueto adopted on November 17, 2023. This plan allows insiders to set up a predetermined schedule for selling company shares, providing a defense against accusations of insider trading.
In addition to his direct holdings, Mansueto holds shares indirectly through trusts for the benefit of himself and his children, as well as through trusts managed by his spouse for their children.
In other recent news, Morningstar, Inc. has experienced several significant developments. The company's third-quarter earnings report indicates ongoing growth and margin expansion. Morningstar's Chief Financial Officer, Jason Dubinsky, has announced his decision to step down at the end of the year. In the realm of analyst reviews, Redburn-Atlantic downgraded Morningstar's stock from Buy to Neutral, whereas UBS initiated coverage with a Buy rating, highlighting potential for significant earnings improvement.
On the acquisitions front, Morningstar Wealth has entered into 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. The company has also maintained its quarterly dividend at 40.5 cents per share.
In an effort to enhance transparency, Morningstar has disclosed a series of investor questions and the company's responses in a recent SEC filing. This document provides insights into the company's operations and strategic direction, addressing key topics such as brand management, cybersecurity measures, and regulatory compliance. These are recent developments that reflect the ongoing efforts of Morningstar to balance growth, transparency, and risk management.
InvestingPro Insights
While Joseph D. Mansueto's recent stock sale might raise eyebrows, Morningstar's financial metrics and market position paint a compelling picture for investors. According to InvestingPro data, Morningstar boasts a market capitalization of $14.85 billion and has demonstrated strong revenue growth of 12.55% over the last twelve months as of Q3 2024. This growth trajectory aligns with an InvestingPro Tip indicating that net income is expected to rise this year.
The company's financial health is further underscored by its robust gross profit margin of 60.91% and an impressive EBITDA growth of 68.01% over the same period. These figures suggest that Morningstar is effectively managing its costs while expanding its business operations.
Investors should note that Morningstar is trading near its 52-week high, with its current price at 98.2% of that peak. This strength is reflected in the stock's performance, having delivered a 23.68% total return over the past year. Additionally, an InvestingPro Tip highlights that Morningstar has maintained dividend payments for 15 consecutive years, signaling a commitment to shareholder returns despite executive stock sales.
For those seeking a deeper understanding of Morningstar's valuation and growth prospects, InvestingPro offers 11 additional tips, providing a more comprehensive analysis for informed investment decisions.
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