What Happened?
Shares of investment analytics provider MSCI (NYSE: MSCI) jumped 3.1% in the morning session after the company reported strong third-quarter financial results that topped expectations, which was followed by a new share repurchase program and positive analyst actions.
The company's operating revenues grew by 9.5%, and its diluted earnings per share rose by a notable 19%. Following this strong performance, MSCI's board approved a new $3.0 billion plan to buy back its own shares. The positive results also prompted favorable reactions from analysts. JPMorgan Chase & Co. increased its price target on the stock to $680.00 from $655.00, and Wells Fargo also raised its target. Additionally, MSCI announced an offering of senior unsecured notes, stating the funds could be used for general corporate purposes, including potential share repurchases.
After the initial pop the shares cooled down to $586.39, up 3.3% from previous close.
Is now the time to buy MSCI? Access our full analysis report here.
What Is The Market Telling Us
MSCI’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 4% on the news that the company reported third-quarter financial results that surpassed Wall Street's profit expectations. The company posted revenue of $793.4 million, up 9.5% from the same period last year, which was in line with analyst estimates. More impressively, its adjusted earnings per share (EPS) came in at $4.47, a 15.8% increase year-over-year and a 2.3% beat against the consensus forecast of $4.37. The positive earnings surprise suggested strong operational efficiency and profitability for the index and analytics provider, encouraging investor confidence despite revenue merely meeting expectations.
MSCI is down 1.8% since the beginning of the year, but at $586.39 per share, it is still trading close to its 52-week high of $635.99 from December 2024. Investors who bought $1,000 worth of MSCI’s shares 5 years ago would now be looking at an investment worth $1,676.
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