Marsh & McLennan Companies, Inc. (MMC) has reached an all-time high, with its stock price soaring to $232.67. This new peak marks a significant milestone for the global professional services firm, reflecting a robust performance that has seen the company's stock climb steadily over the past year. Investors have shown increased confidence in Marsh & McLennan's strategic initiatives and market position, which is underscored by an impressive 1-year change of 15.22%. The company's ascent to this record level is a testament to its resilience and adaptability in a complex and ever-changing global landscape, as it continues to deliver value to its clients and shareholders alike.
In other recent news, Marsh & McLennan has seen a flurry of activity, most notably the completion of a $7.75 billion acquisition of McGriff, a retail broking unit previously owned by Truist. Evercore ISI has resumed coverage of Marsh & McLennan, assigning an Outperform rating and setting a price target of $242, reflecting recent developments including the McGriff acquisition and third-quarter results. The acquisition is expected to contribute around $400 million to $500 million in EBITDA to Marsh & McLennan, and is projected to be modestly accretive to EPS in 2025 and more significantly in 2026.
In addition, Marsh & McLennan has issued $7.25 billion in senior notes, facilitated by major underwriters including Citigroup (NYSE:C) Global Markets Inc., BofA Securities, Inc., and Deutsche Bank (ETR:DBKGn) Securities Inc. The company also reported a 5% increase in underlying revenue and a 12% rise in adjusted operating income for Q3 2024, with an adjusted EPS of $1.63 and consolidated revenue of $5.7 billion.
Analyst firms including Keefe, Bruyette & Woods, BMO Capital Markets, RBC Capital, and Goldman Sachs have updated their price targets and ratings for Marsh & McLennan. These adjustments reflect their analysis of the company's recent performance and future prospects. The company's strategic focus is shifting towards the McGriff acquisition, expected to be modestly accretive to the adjusted EPS in its first year. These are among the recent developments for Marsh & McLennan.
InvestingPro Insights
Marsh & McLennan's recent achievement of an all-time high stock price is further supported by data from InvestingPro. The company's market capitalization stands at an impressive $113.31 billion, reflecting its significant presence in the insurance industry. MMC's strong performance is evident in its revenue growth of 7.84% over the last twelve months, with total revenue reaching $23.95 billion.
InvestingPro Tips highlight MMC's financial stability and shareholder-friendly policies. The company has maintained dividend payments for 54 consecutive years and has raised its dividend for 15 consecutive years, demonstrating a commitment to returning value to shareholders. This is particularly noteworthy given the company's current dividend yield of 1.41%.
The stock's momentum is further emphasized by its trading near its 52-week high, with a price that is 99.31% of its 52-week high value. This aligns with the article's mention of MMC's steady climb over the past year.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips on Marsh & McLennan, providing deeper insights into the company's financial health and market position.
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