Marsh & McLennan trails S&P 500 as cost and leverage concerns weigh
Shares have fallen 11.6% over the past year, but analysts retain a reported Moderate Buy consensus.
Marsh & McLennan shares have underperformed the S&P 500 over the past 52 weeks, falling 11.6% while the benchmark gained 15.7%, according to a report published by Barchart and distributed by Yahoo Finance.
The stock is down 5.9% year to date, compared with an 11.6% rise for the S&P 500. Over the past three months, however, shares have gained 6.3%, ahead of the index’s 2.9% increase. The stock has also traded above its 50-day and 200-day moving averages since June.
The reported pressures include higher wages, talent-retention expenses and acquisition costs, which have weighed on margins. Investors have also cited weaker property and casualty insurance pricing, elevated leverage and higher interest expenses following acquisitions including McGriff.
Marsh & McLennan, which operates across 130 countries and has more than 95,000 colleagues, had a reported market capitalisation of $84.4 billion. Rival Aon has fallen 17.3% over the past 52 weeks and 16.1% year to date, according to the report.
Despite the relative weakness, the 26 analysts covered in the report retain a Moderate Buy consensus. Their mean price target is $203.91, described as 16.8% above current levels.
