BNP Paribas has significantly increased its investment in MSCI Inc, boosting its holdings by 38.3% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission, BNP Paribas now owns 8,276 shares of the technology company, following the acquisition of an additional 2,293 shares in the quarter. The value of BNP Paribas’ stake in MSCI reached approximately $4.7 million by the end of the reporting period.
This move is part of a broader trend among hedge funds and institutional investors who have also been increasing their positions in MSCI. Vanguard Group Inc. raised its stake by 1.7% during the same quarter, now owning 9,674,093 shares valued at $5.5 billion after adding 165,851 shares. Similarly, State Street Corp increased its stake by 1.4%, bringing its total to 3,281,311 shares worth approximately $1.9 billion.
Bamco Inc. NY and Principal Financial Group Inc. also bolstered their investments. Bamco increased its holdings by 4.8%, owning 2,170,333 shares valued at about $1.25 billion, while Principal Financial grew its position by 6.6%, totaling 1,777,749 shares valued at $1.01 billion. Notably, JPMorgan Chase & Co. raised its stake by 36.0%, now holding 1,069,180 shares worth approximately $606.7 million. Overall, institutional investors control 89.97% of MSCI’s stock.
Analysts Project Strong Growth for MSCI
Wall Street analysts have recently updated their outlook for MSCI shares. Wells Fargo & Company increased its price target from $590.00 to $618.00, maintaining an “equal weight” rating. UBS Group set a target of $638.00, while Evercore raised its estimate from $655.00 to $690.00 and rated the stock as “outperform.” Bank of America has initiated coverage with a “buy” recommendation and a target price of $700.00.
Currently, eight analysts have issued a “Buy” rating for MSCI, with three rating it as “Hold.” According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $671.78.
As of the latest trading session, MSCI shares opened at $547.34. The company has a market capitalization of $40.22 billion, a price-to-earnings ratio of 34.88, and a one-year trading range between $486.73 and $626.28.
MSCI’s Financial Performance and Dividend Increase
MSCI announced its earnings results on January 28, 2024, reporting an earnings per share (EPS) of $4.66, surpassing the consensus estimate of $4.62 by $0.04. The company generated revenues of $822.53 million, exceeding analysts’ expectations of $819.51 million. This marks a 10.6% year-over-year increase from the previous quarter.
In addition to its strong financial performance, MSCI has declared a quarterly dividend of $2.05, which is an increase from the previous dividend of $1.80. This dividend will result in an annualized payout of $8.20, providing a dividend yield of 1.5%. The ex-dividend date was set for February 13, 2024, with the payment made on February 27, 2024. MSCI’s current payout ratio stands at 52.26%.
Additionally, CEO Henry A. Fernandez acquired 800 shares at an average cost of $518.95 per share on February 17, 2024, raising his total ownership to 1,493,847 shares, valued at approximately $775.23 million. This transaction was disclosed in a filing with the Securities and Exchange Commission.
With MSCI Inc’s focus on enhancing its offerings, including environmental, social, and governance (ESG) research and ratings, the company remains a key player in providing investment decision support tools and services for the financial industry.
