MSCI (NYSE:MSCI) Stock Price Down 8% – Here’s Why

MSCI Inc (NYSE:MSCI) dropped 8% during mid-day trading on Tuesday . The company traded as low as $520.30 and last traded at $514.4450. Approximately 735,306 shares traded hands during trading, an increase of 24% from the average daily volume of 590,786 shares. The stock had previously closed at $559.39.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on MSCI. UBS Group set a $638.00 target price on shares of MSCI in a research note on Wednesday, January 28th. JPMorgan Chase & Co. upped their price objective on MSCI from $655.00 to $680.00 and gave the company an “overweight” rating in a research note on Wednesday, October 29th. Royal Bank Of Canada reissued an “outperform” rating and set a $655.00 price objective on shares of MSCI in a report on Thursday, January 29th. Barclays restated an “overweight” rating on shares of MSCI in a research note on Thursday, January 29th. Finally, Evercore increased their price target on MSCI from $655.00 to $690.00 and gave the stock an “outperform” rating in a research note on Thursday, January 29th. Eight equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $659.00.

MSCI Stock Performance

The firm has a market cap of $38.74 billion, a P/E ratio of 32.86, a P/E/G ratio of 2.35 and a beta of 1.29. The firm has a 50 day simple moving average of $575.09 and a 200 day simple moving average of $566.98.

MSCI (NYSE:MSCI) last announced its quarterly earnings results on Wednesday, January 28th. The technology company reported $4.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.62 by $0.04. The firm had revenue of $822.53 million for the quarter, compared to the consensus estimate of $819.51 million. MSCI had a net margin of 38.36% and a negative return on equity of 82.59%. The company’s revenue for the quarter was up 10.6% on a year-over-year basis. During the same period in the prior year, the firm posted $4.18 earnings per share. Sell-side analysts predict that MSCI Inc will post 16.86 EPS for the current fiscal year.

MSCI Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Friday, February 13th will be issued a $2.05 dividend. The ex-dividend date of this dividend is Friday, February 13th. This is an increase from MSCI’s previous quarterly dividend of $1.80. This represents a $8.20 annualized dividend and a dividend yield of 1.6%. MSCI’s payout ratio is currently 45.89%.

MSCI announced that its Board of Directors has initiated a share buyback program on Tuesday, October 28th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the technology company to buy up to 7.1% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.

Insider Activity at MSCI

In other MSCI news, General Counsel Robert J. Gutowski sold 624 shares of the firm’s stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $558.42, for a total value of $348,454.08. Following the sale, the general counsel owned 15,945 shares of the company’s stock, valued at $8,904,006.90. This trade represents a 3.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Andrew C. Wiechmann sold 450 shares of the business’s stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $550.00, for a total value of $247,500.00. Following the transaction, the chief financial officer directly owned 21,639 shares of the company’s stock, valued at $11,901,450. The trade was a 2.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 3.31% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On MSCI

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Pinnacle Bancorp Inc. purchased a new position in MSCI in the 3rd quarter worth approximately $27,000. Root Financial Partners LLC bought a new stake in shares of MSCI during the 3rd quarter worth $28,000. Mowery & Schoenfeld Wealth Management LLC lifted its holdings in shares of MSCI by 341.7% during the 4th quarter. Mowery & Schoenfeld Wealth Management LLC now owns 53 shares of the technology company’s stock worth $30,000 after acquiring an additional 41 shares during the last quarter. Eagle Bay Advisors LLC purchased a new position in MSCI in the fourth quarter worth $34,000. Finally, Elyxium Wealth LLC bought a new position in MSCI in the fourth quarter valued at $34,000. 89.97% of the stock is owned by hedge funds and other institutional investors.

MSCI Company Profile

MSCI Inc is a global provider of investment decision support tools and services for the financial industry. The company is best known for its family of market indexes, which are widely used as benchmarks by asset managers and as the basis for exchange-traded funds and other passive products. In addition to index construction and licensing, MSCI offers portfolio analytics, risk models, factor and performance attribution tools, and a suite of data and technology solutions designed to support portfolio management and trading.

Beyond traditional indexing and risk analytics, MSCI has expanded into environmental, social and governance (ESG) research and ratings, offering data, scores and screening tools that help investors integrate sustainability considerations into investment processes.