Oregon Retirement Fund Expands Stake in MSCI by Over 32%

Oregon Public Employees Retirement Fund has significantly increased its holdings in MSCI Inc, boosting its position by 32.2% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the fund now owns 8,881 shares of the technology company’s stock, following the acquisition of an additional 2,163 shares during this period. The total value of the fund’s investment in MSCI is approximately $5,039,000.

This increase in holdings coincides with similar actions from other institutional investors. For instance, Empowered Funds LLC raised its stake in MSCI by 7.6% in the first quarter, now owning 2,003 shares, valued at $1,133,000. Additionally, Woodline Partners LP expanded its position by 39.0%, acquiring 6,585 shares worth $3,724,000, while Focus Partners Wealth increased their holdings by 10.1%, now owning 24,728 shares valued at $13,984,000.

The influence of institutional investors is notable, as they collectively own 89.97% of MSCI’s stock.

Insider Activity and Financial Performance

Recent transactions by company insiders further highlight the dynamics at MSCI. On November 24, 2023, General Counsel Robert J. Gutowski sold 624 shares at an average price of $558.42, totaling $348,454.08. Following this sale, Gutowski holds 15,945 shares valued at around $8,904,006.90, reflecting a 3.77% decrease in his position.

Conversely, CEO Henry A. Fernandez purchased 2,290 shares on December 5, 2023, at an average price of $536.17, amounting to $1,227,829.30. After this acquisition, Fernandez owns 335,069 shares, valued at approximately $179,653,945.73, marking a 0.69% increase in his holdings. Company insiders currently own 3.31% of MSCI’s stock.

MSCI recently reported its quarterly earnings on October 28, 2023, announcing earnings per share (EPS) of $4.47, exceeding analysts’ expectations of $4.37. The company achieved a net margin of 40.03% and reported $793.43 million in revenue, slightly below the anticipated $794.87 million. This represents a 9.5% increase compared to the same quarter last year when the company posted an EPS of $3.86.

Stock Buyback and Dividend Announcements

In a strategic move, MSCI’s board approved a stock repurchase program, allowing the company to buy back up to $3.00 billion in shares, which represents approximately 7.1% of its stock. Such buyback initiatives often indicate that a company’s leadership believes its stock is undervalued.

On November 28, 2023, MSCI declared a quarterly dividend of $1.80 per share, paid to investors of record on November 14, 2023. This results in an annualized dividend of $7.20 with a yield of 1.2%. The company’s current payout ratio stands at 45.63%.

Research analysts continue to express optimism about MSCI’s future performance. Barclays recently increased its target price for MSCI shares from $650.00 to $660.00 while maintaining an “overweight” rating. Similarly, Evercore ISI raised its price objective to $611.00 with an “outperform” rating.

Currently, MSCI has received one “Strong Buy” rating, six “Buy” ratings, and four “Hold” ratings, resulting in an average rating of “Moderate Buy” with a consensus price target of $642.63.

MSCI Inc serves as a global provider of investment decision support tools and services for the financial industry, known primarily for its family of market indexes widely used by asset managers. The company has broadened its offerings to include environmental, social, and governance (ESG) research and ratings, helping investors integrate sustainability into their investment strategies.