Today, Marsh & McLennan Companies, Inc. (NYSE:MMC) disclosed an upcoming blackout period for its employee benefit plans, specifically affecting the trading of the company's common stock. This temporary suspension, as reported in a recent 8-K filing with the Securities and Exchange Commission (SEC), is due to administrative changes in the company's 401(k) Savings and Investment Plan.
The blackout period is scheduled to commence on July 26, 2024, at 4:00 p.m. Eastern Time and is expected to conclude by the week of August 12, 2024. The purpose of this trading halt is to facilitate the transition of individual account management and recordkeeping services from the current administrator to Alight Solutions LLC.
During this blackout, directors and executive officers of Marsh & McLennan will be prohibited from conducting any transactions involving the company's stock, including derivative securities, whether within or outside of the 401(k) Plan. This restriction is in compliance with the Sarbanes-Oxley Act of 2002 and SEC Regulation Blackout Trading Restriction (BTR).
The company has issued a notice to its executive officers and directors regarding the trading suspension, which also outlines that inquiries about the blackout period can be directed to Connor Kuratek, Deputy General Counsel, Chief Compliance Officer and Corporate Secretary, for a period of two years following the end of the blackout.
The notice of the blackout period is included as Exhibit 99.1 in the 8-K filing and serves as the official communication regarding this temporary suspension of trading. Marsh & McLennan's proactive disclosure aims to maintain transparency with its stakeholders and ensure compliance with regulatory requirements during this administrative transition.
In other recent news, Marsh McLennan (NYSE:MMC) has been making significant strides in its expansion strategy. The company has announced its intent to acquire UK and Dutch pension specialist Cardano, a move that will integrate approximately $66 billion in assets under management into Mercer (NASDAQ:MERC)'s wealth management services. The merger, pending regulatory approval, is expected to conclude by the end of 2024.
Marsh McLennan has also been active in the U.S. with acquisitions of Perkins Insurance Agencies, AC Risk Management, and Fisher Brown Bottrell Insurance, Inc. for $315.9 million. These acquisitions aim to strengthen Marsh McLennan's presence in various regions and sectors, including West Texas, the Northeast, and the Southeast.
In terms of analyst notes, Keefe, Bruyette & Woods raised their price target on Marsh & McLennan to $195, maintaining an Underperform rating on the stock. RBC Capital Markets also increased their price target to $210, citing the company's solid top-line momentum.
InvestingPro Insights
As Marsh & McLennan Companies, Inc. (NYSE:MMC) approaches its blackout period, investors may consider the company's financial health and market performance to assess the potential impact. According to real-time data from InvestingPro, Marsh & McLennan boasts a robust market capitalization of 106.68 billion USD, reflecting its significant presence in the insurance industry. Despite the temporary trading suspension, the company's fundamentals remain strong, with a notable revenue growth of 10.38% over the last twelve months as of Q1 2024.
InvestingPro Tips highlight that Marsh & McLennan has not only raised its dividend for 14 consecutive years but has also maintained dividend payments for an impressive 54 years. These factors, combined with the company's low price volatility and status as a prominent player in the insurance industry, could reassure investors during the upcoming blackout period.
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