Morningstar Stock Price, News & Analysis

Morningstar, Inc. (Nasdaq: MORN) will release its third-quarter 2021 financial results on October 27, 2021, after the market closes. The company does not conduct analyst conference calls but invites investors to submit questions via email. Morningstar is a prominent provider of independent investment research, operating across 29 countries and offering a variety of services to individual investors, financial advisors, and institutional clients. As of June 30, 2021, the company managed approximately $251 billion in assets.

Morningstar (MORN) launched the Due Diligence Module, designed to help financial advisors comply with Client Focused Reforms (CFRs) in Canada by evaluating investment alternatives effectively. A survey indicated that 64% of advisors feel unsupported in navigating these new requirements. The module offers a streamlined workflow for assessing investment options, ensuring compliance with suitability standards. It integrates with existing systems and supports various investment types. Morningstar aims to enhance advisors' confidence and operationalize CFR requirements for better compliance.

Morningstar has announced a new analytics capability in Morningstar Direct, enhancing data analysis with interactive Notebooks. This development aims to provide investors with diverse insights into ownership and performance. Five Notebooks are currently available, with three more datasets expected by the end of 2021, including Portfolio Manager Performance History and Stock Ownership Analysis. Additionally, users will soon pilot the Analytics Lab for custom analytics, leveraging Python data science capabilities. The announcements were made ahead of the annual Morningstar Investment Conference.

Morningstar, Inc. (Nasdaq: MORN) reported U.S. mutual fund and ETF inflows of $103 billion for August 2021, surpassing July's $71 billion but below earlier records. Key highlights include international-equity funds attracting $24 billion, marking their 10th consecutive month of inflows, and year-to-date totals reaching $193 billion. Taxable and municipal-bond funds also gained $47 billion and $11 billion, respectively. Vanguard and iShares led asset gains among fund families with $24 billion and $19.8 billion respectively.

Morningstar, Inc. (MORN) announced significant enhancements to its investment research offerings for model portfolios. The company will double its coverage of model portfolios by the end of 2021, publish its annual report on the model portfolio landscape, and launch the Morningstar Rating for model portfolios. Key findings reveal that approximately $315 billion is managed in model portfolios, with BlackRock leading as the largest provider. New functionalities, such as the 'Model Exchange' in Advisor Workstation, aim to improve investor access to tailored investment strategies.

Morningstar, Inc. (MORN) announced the acquisition of Moorgate Benchmarks, enhancing its capabilities in index design and administration. This move aims to provide customized investment indexes, tapping into Moorgate's advanced technology and European expertise. Moorgate becomes a wholly owned subsidiary, with its 20 employees joining Morningstar's Indexes team. The acquisition aligns with Morningstar's strategy to disrupt the index industry, offering more value to investors. Financial terms remain undisclosed, but this strategic acquisition positions Morningstar as a stronger competitor in the global index market.

Morningstar (MORN) released its annual fund fee study, revealing a significant decline in average expense ratios for U.S. mutual funds and ETFs. From 2000 to 2020, the asset-weighted average fee decreased from 0.93% to 0.41%, saving investors an estimated $6.2 billion in 2020 alone. Key findings include the reduction in fees for both active and passive funds, with passive funds averaging 0.12%. Additionally, while sustainable funds have higher fees, their costs have been decreasing. The report emphasizes a trend towards low-cost funds which attract substantial investor inflows.

Morningstar reported U.S. mutual fund and ETF flows for July 2021, totaling $72 billion, below the $121 billion monthly average in H1 2021. ETFs attracted $49 billion, while actively managed funds collected $15 billion. International-equity funds continued strong performance with $30 billion inflows. However, U.S. equity funds faced $7.2 billion in outflows for the first time since January. Taxable-bond funds gathered $33 billion, their lowest since March 2020, while sustainability funds saw significant growth, attracting over $45 billion in 2021 so far.

Morningstar reported strong growth in Q2 2021, with revenue rising 26.7% to $415.4 million, and organic revenue up 16.7%. Despite these gains, operating income fell 23.0% to $47.2 million, and diluted net income decreased 32.1% to $0.76 per share. Adjusted diluted net income surged 23.1% to $1.76 per share. Year-to-date, revenue increased 24.0% to $808.2 million, driven by robust performance in core products like PitchBook and Morningstar Indexes. Operating cash flow was $127.2 million, reflecting a 0.3% decline due to a Sustainalytics earn-out payment.