Morningstar (MORN) | News Based Sentiment Analysis

• On October 3, 2025, Morningstar announced a significant acquisition, agreeing to purchase the Center for Research in Security Prices (CRSP) from the University of Chicago for $375 million. This move is expected to strengthen Morningstar’s position as a leading index provider, as CRSP’s indexes currently benchmark over $3 trillion in U.S. equities, including funds managed by Vanguard. This acquisition adds $55 million in annual revenue for Morningstar.
• Despite a generally positive outlook from analysts, with an average target price of $361.67 representing a potential upside of 59.95% as of October 1, 2025, Wall Street Zen downgraded Morningstar’s rating from “buy” to “hold” on July 5th. The consensus rating remains a “Moderate Buy,” suggesting continued, albeit tempered, optimism.
• Morningstar’s stock experienced a challenging period, hitting a new 52-week low of $228.53 on October 1, 2025, a 27.32% decrease year-over-year. However, InvestingPro data indicates strong financial health, with a Piotroski Score of 9, a 61% gross profit margin, and 8.2% revenue growth, suggesting the decline may not reflect fundamental weaknesses.
• Insider selling activity raised some eyebrows, with Chairman Joseph D. Mansueto selling shares on August 27th and October 2nd, totaling $3,597,283.25 and decreasing his ownership by a combined 0.15%. Over the last quarter, insiders collectively sold $22 million worth of shares.
• Institutional investors demonstrated increased confidence in Morningstar during the second quarter, with Wealth Enhancement Advisory Services LLC increasing their stake by 90.1% to $1.07 million, Invesco Ltd. increasing holdings by 266.5% to $88,190,000, and Amundi significantly raising their stake by 22,716.4% to $50,512,000.
• Morningstar is scheduled to report its third-quarter 2025 financial results after market close on Wednesday, October 29, 2025. Last year, the company reported an EPS of $2.00 for the same quarter, providing a benchmark for comparison.

The Investment Story: October proved to be a mixed month for Morningstar, marked by a strategic acquisition aimed at bolstering its index business, countered by a declining stock price and insider selling. Despite these headwinds, strong institutional interest and solid financial health indicators offer a degree of resilience.

What It Means for Investors: The CRSP acquisition is a positive long-term development, but the stock's recent performance and insider sales warrant caution. Investors should closely watch the October 29th earnings report to assess the company's current trajectory and management's outlook. The mixed signals suggest a period of potential volatility.

Looking Ahead: The upcoming earnings report on October 29, 2025, will be a key catalyst. Investors should pay attention to management’s commentary on the CRSP integration, revenue growth, and the impact of market conditions on their index business. Monitoring insider activity will also be crucial.

The Bottom Line: Morningstar presents a complex investment picture. While the acquisition of CRSP is a strategic win, recent stock performance and insider selling introduce uncertainty. A careful assessment of the upcoming earnings report and continued monitoring of key financial metrics are essential for making informed investment decisions.