Morningstar Stock Price, News & Analysis

Morningstar, Nasdaq: MORN, reported a 5.0% revenue growth for Q1 2023, totaling $479.7 million, with organic revenue growth at 2.8%. However, operating income saw a significant decline of 56.6% to $24.5 million, and diluted net income per share plummeted to ($0.18), down from $1.06 in the same quarter of the prior year. The company highlighted that while license-based areas thrived with a 16.7% revenue increase, challenges arose from soft credit issuance and market volatility affecting other revenue streams. Free cash flow turned negative at ($6.1 million), compared to ($4.5 million) a year prior. CEO Kunal Kapoor noted cautious management during economic uncertainty, with slowed headcount growth.

Morningstar, Inc. (Nasdaq: MORN) announced the launch of the Portfolio Analytics feature for its ByAllAccounts product, enhancing data aggregation for financial advisors. This feature integrates Morningstar Licensed Data, providing detailed analytics on investment portfolios, including asset allocation, sector exposure, and risk analytics. With these tools, advisors can generate proposals more efficiently and optimize client investment strategies. Katy Gibson, general manager of ByAllAccounts, emphasized the need for competitive advantages in wealth management, while Daniel Needham, president of Morningstar Wealth, reaffirmed their commitment to innovation in financial technology. Morningstar's asset management services include approximately $246 billion in assets under advisement as of December 31, 2022, highlighting the company's extensive market reach.

Morningstar, Inc. (Nasdaq: MORN) announced a significant enhancement to its U.S. Wealth Platform by integrating curated portfolios from top asset managers including BlackRock, Clark Capital, Fidelity, and T. Rowe Price. This initiative aims to provide financial advisors and their clients a broader spectrum of investment choices. The Morningstar Wealth Portfolio Strategist team will offer unique model pairing options, facilitating personalized recommendations in a unified managed account. This strategic evolution follows the successful launch of Direct Indexing. Morningstar continues to support advisors with curated insights to streamline investment decision-making.

Morningstar Sustainalytics has launched its Low Carbon Transition Ratings, designed to help investors assess a company's preparedness for a low-carbon economy. This new rating system evaluates nearly 4,000 public companies and aims to expand to over 12,500 by 2024. The ratings are based on an assessment of a company's strategies and actions towards meeting net-zero commitments, focusing on greenhouse gas emissions and governance practices. Sustainalytics' research finds only 25% of companies have strong emission reduction targets and 8% have effective GHG performance incentive plans. The ratings also use the PRI-commissioned Inevitable Policy Response scenario to determine companies' transition risks. Investors can leverage this to identify risks, comply with regulations, and shape climate investment strategies.

Morningstar, Inc. published its 2023 Target-Date Strategy Landscape Report, revealing that target-date strategies attracted $153 billion in net inflows during 2022, with $121 billion (79%) funneled into collective investment trusts (CITs). Total assets in target-date strategies dipped to $2.82 trillion, a 14% decline from $3.27 trillion in 2021 due to market depreciation. CITs are projected to surpass mutual funds in popularity. The report also highlights the influence of fees on fund flows, with $60 billion going to the cheapest options and litigation risks for sponsors concerning performance.

Morningstar, Inc. (Nasdaq: MORN) will release its first-quarter 2023 financial results on April 26, 2023, after market close. The company does not conduct analyst conference calls, but investors can submit questions via email. Morningstar is a prominent provider of independent investment insights across North America, Europe, Australia, and Asia, serving various investors including individuals and institutions. As of December 31, 2022, Morningstar managed approximately $246 billion in assets. The company operates in 32 countries, focusing on a wide range of investment offerings.

Morningstar, Inc. (NASDAQ: MORN) recently announced the winners of the 2023 U.S. Morningstar Awards for Investing Excellence. Rick Rieder of BlackRock was honored as the Outstanding Portfolio Manager for his leadership in building a top-tier fixed-income operation since 2010. Capital Group received the Exemplary Stewardship award, recognizing its strong track record and investor-centric philosophy. Morningstar's head of manager research highlighted the proven results and focus on investor interests from both winners. The awards emphasize excellence in the asset management industry.

The board of directors of Morningstar declared a quarterly dividend of 37.5 cents per share, maintaining the same amount as the previous quarter. This dividend is payable on April 28, 2023, to shareholders recorded as of April 7, 2023. Morningstar provides independent investment insights and manages approximately $246 billion in assets as of December 31, 2022, serving clients globally across multiple investment sectors.