MSCI's Outperform Rating Affirmed by Royal Bank of Canada

The research note released on Wednesday by the Royal Bank of Canada has once again confirmed its "outperform" rating for MSCI (NYSE: MSCI - Get Free Report). Along with this rating, the bank has set a target price of $638.00 for the shares of the technology company. This anticipated target suggests a potential increase of approximately 10.49% based on the company's previous stock close.

In addition, other research firms have provided their insights on MSCI. For example, Redburn Atlantic upgraded MSCI from a "neutral" to a "buy" rating and set a price target of $680.00 as of October 9. Morgan Stanley increased their price target from $615.00 to $640.00, rating the stock as "overweight" based on their report from July 24. Following suit, The Goldman Sachs Group also raised their price objective for MSCI from $526.00 to $590.00, giving the stock a "neutral" rating on the same date. Barclays recently set a higher target price of $700.00, up from $650.00, maintaining an "overweight" classification in their Friday report on September 13. Meanwhile, UBS Group has adjusted their target price down from $695.00 to $680.00, still offering a "buy" rating.

As of now, MSCI stock has received a variety of ratings, with seven analysts suggesting a hold and nine analysts advocating for buying the stock. According to MarketBeat.com, the consensus rating for MSCI is classified as a "Moderate Buy," with an average price target standing at $622.54.

Current Stock Performance of MSCI

On Wednesday, shares of MSCI saw a slight decline of $1.52 during trading, reaching a price of $577.41. The trading volume recorded was 173,249 shares, substantially lower than the average volume of 538,095. Over the past year, MSCI has experienced a low of $439.95 and a peak of $631.70. The company currently holds a market capitalization of $45.41 billion, with a price-to-earnings ratio of 38.44, a PEG ratio of 3.09, and a beta of 1.11. The stock's 50-day moving average sits at $579.80 while the 200-day moving average is at $529.06.

MSCI recently released its earnings results on October 29, reporting earnings of $3.86 per share (EPS) for the recent quarter which exceeded analysts’ expectations of $3.77 by $0.09. Although the company showed a negative return on equity of 143.09%, it achieved a net margin of 43.86%. The reported revenue was $724.70 million, surpassing the anticipated $716.15 million. Comparatively, during the same period in the previous year, MSCI had earned $3.45 EPS, indicating a year-on-year revenue increase of 15.9%. Currently, analysts expect MSCI to report an EPS of approximately 14.83 for the current financial year.

Institutional Ownership of MSCI

Recent changes among hedge funds have been noted concerning MSCI. In the second quarter, Rothschild Investment LLC made its entry into MSCI with a stake worth about $26,000. Similarly, HWG Holdings LP entered the picture with a stake valued around $27,000 in the same quarter. Crewe Advisors LLC also acquired a new stake in MSCI worth approximately $34,000 in the first quarter, while Ridgewood Investments LLC invested about $40,000 during the second quarter. Lastly, American National Bank & Trust bought a position of around $58,000 in the third quarter. Presently, institutional investors and hedge funds own 89.97% of MSCI's stock.

About MSCI

MSCI Inc, along with its subsidiaries, offers essential decision-making tools and solutions for the investment sector globally. The company's Index segment provides various indexes for utilization in several investment areas. This includes indexed financial products such as ETFs, mutual funds, annuities, structured products, and over-the-counter derivatives, among others. MSCI also facilitates performance benchmarking, portfolio construction and rebalancing, asset allocation, and licenses Global Industry Classification Standard (GICS) and GICS Direct.

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