The State of Alaska Department of Revenue has recently increased its stake in MSCI Inc. by 0.3% during the first quarter. This adjustment brings the department's total holdings to 10,955 shares, valued at approximately $6.14 million, following the acquisition of an additional 35 shares.
Norden Group LLC also entered the MSCI arena, acquiring a new stake worth around $2.39 million in the same quarter. Institutional investors and hedge funds collectively hold 89.97% of the company's stock.
MSCI operates primarily through its Index segment, offering a variety of indexes utilized in investment processes. The recent uptick in institutional investment reflects a growing confidence in MSCI's business model and its potential for future growth.
Recent reports from various financial analysts have provided mixed signals regarding MSCI's stock performance. UBS Group has lowered its price target from $695 to $680, while maintaining a "buy" rating. Royal Bank of Canada reaffirmed an "outperform" rating and set a price objective of $638. Goldman Sachs has increased its target from $526 to $590, assigning a "neutral" rating. Barclays has raised its price target from $650 to $700, giving MSCI an "overweight" rating.
The consensus among analysts indicates a "Moderate Buy" rating for MSCI, with an average price target of $622.54. As of the latest trading session, MSCI shares were down 0.6%, trading at $575.71, with a market capitalization of $45.28 billion.
MSCI's recent quarterly earnings report has revealed a positive trajectory for the company. For the quarter ending October 29, the firm reported earnings per share (EPS) of $3.86, surpassing the consensus estimate of $3.77 by $0.09. Revenue for the quarter reached $724.7 million, exceeding analysts' expectations of $716.15 million. This marks a significant year-over-year revenue increase of 15.9%.
Despite these positive earnings, MSCI reported a negative return on equity of 143.09%. However, the net margin of 43.86% suggests that the company is maintaining a healthy profitability level. Analysts project that MSCI will post an EPS of 14.83 for the current year.
The trading activity surrounding MSCI shares has been notable, with several institutional investors adjusting their positions in the company. Wealth Enhancement Advisory Services LLC increased its holdings by 4.8% in the first quarter, now owning 3,615 shares valued at $2.03 million after acquiring an additional 165 shares. Allspring Global Investments Holdings LLC also raised its position by 7.7%, bringing its total to 48,601 shares worth approximately $27.24 million after purchasing an additional 3,465 shares. Sumitomo Mitsui Trust Holdings Inc. has similarly expanded its stake in MSCI by 0.6%, now holding 187,388 shares valued at $105.02 million following the acquisition of 1,119 additional shares.