Morningstar, Inc. (NASDAQ:MORN) Executive Chairman Joseph D. Mansueto has sold a portion of his company stock, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on May 28, 2024, involved the sale of 236 shares at a weighted average price of approximately $296.65, totaling over $70,000.
The sale was executed under a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. This plan had been adopted by Mansueto on November 17, 2023.
The prices at which the shares were sold ranged from $296.60 to $296.72. The reported weighted average sale price reflects the aggregate of these transactions. Mansueto has committed to providing full information regarding the specific numbers of shares sold and their respective prices upon request by the SEC, Morningstar, or any of its shareholders.
Following the sale, Mansueto still holds a significant number of shares in Morningstar. Direct ownership accounts for 10,668,489 shares, while additional shares are held indirectly through trusts. Specifically, 4,752,663 shares are retained in grantor retained annuity trusts for the benefit of Mansueto and his children, with Mansueto serving as the trustee. Another 150,000 shares are held in trusts for his children's benefit, with his spouse acting as the trustee.
The filing was signed on Mansueto's behalf by Kathleen Peacock, by power of attorney, on May 29, 2024.
InvestingPro Insights
As Morningstar's Executive Chairman Joseph D. Mansueto parts with a fraction of his company holdings, the financial data provider's market performance and valuation metrics are of keen interest to investors. Morningstar is currently trading at a premium, with an adjusted Price/Earnings (P/E) ratio of 50.05, reflecting a market that is pricing in optimistic growth prospects for the company. This high earnings multiple is noteworthy, especially since the company has also been able to maintain its dividend payments for 15 consecutive years, showcasing a commitment to shareholder returns.
The company's Price/Book ratio, as of the last twelve months leading up to Q1 2024, stands at 8.89, which indicates that investors are willing to pay a higher price for each dollar of book value. This could be attributed to Morningstar's strong historical performance, with a notable return on assets of 6.23% in the same period. Additionally, the company has experienced a significant year-over-year revenue growth of 11.01%, suggesting a robust expansion of its business activities.
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With analysts predicting profitability this year and the company having been profitable over the last twelve months, Morningstar appears to be on a solid financial footing. The combination of sustained dividend payments and a high return over the last decade further supports the notion of a potentially lucrative long-term investment.
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