Morningstar Director Steven Kaplan Sells 1,250 Shares Amid Negative Insider Sentiment

Steven N. Kaplan, a Morningstar Director, sold 1,250 shares of company stock at $298.13 per share, totaling $372,662, under a Rule 10b5-1 trading plan. Kaplan still owns 43,177 shares directly, following this sale, which is part of a larger trend of 59 insider sales over the past year.

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Morningstar Director Steven Kaplan Sells 1,250 Shares Amid Negative Insider Sentiment

Morningstar Director Steven Kaplan Sells 1,250 Shares Amid Negative Insider Sentiment

On May 10, 2024, Steven N. Kaplan, a Director at Morningstar Inc. (NASDAQ:MORN), sold 1,250 shares of the company's stock at an average price of $298.13 per share, resulting in a total sale amount of approximately $372,662. This transaction was conducted under a Rule 10b5-1 trading plan, which Kaplan had previously adopted on August 3, 2023.

Why this matters: The sale of shares by a high-ranking executive like Kaplan can have a significant impact on investor confidence, potentially influencing the stock's performance. As Morningstar is a major player in the financial services industry, this insider sentiment can have broader implications for the sector as a whole.

Rule 10b5-1 plans allow company insiders to set up predetermined trading arrangements for selling stocks at a time when they are not in possession of material non-public information, providing a defense against accusations of insider trading. Following the sale, Kaplan still owns a total of 43,177 shares of Morningstar stock directly.

This sale is part of a larger trend, with Kaplan having sold a total of 2,500 shares over the past year, with no purchases, indicating negative insider sentiment. The pattern of 59 insider sales and no insider purchases over the past year further reinforces this sentiment towards the stock.

Morningstar, headquartered in Chicago, Illinois, is known for providing investment advice and other finance-related services. The company boasts a robust market capitalization of $12.67 billion and has shown commendable revenue growth, with an 11.01% increase over the last twelve months as of Q1 2024. As of the latest transaction, the company's shares were valued at $298.13, with a price-earnings ratio of 59.88, significantly above the industry median.

According to GF Value, the stock's valuation is $296.69, leading to a price-to-GF-Value ratio of 1, indicating that the stock is fairly valued. Morningstar has maintained dividend payments for 15 consecutive years and experienced a strong return over the last year, with a 58.1% one-year price total return.

This article is designed to provide general insights and is not tailored financial advice. The analysis is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. For investors seeking more detailed analytics and insights, InvestingPro offers additional tips on Morningstar's financial outlook.

Key Takeaways

  • Steven N. Kaplan, Morningstar Director, sold 1,250 shares at $298.13 each, totaling $372,662.
  • The sale was made under a Rule 10b5-1 trading plan to avoid insider trading accusations.
  • Kaplan still owns 43,177 shares directly, and has sold 2,500 shares over the past year with no purchases.
  • Morningstar's stock is fairly valued with a price-to-GF-Value ratio of 1, and has a strong 1-year price total return of 58.1%.
  • The company has maintained dividend payments for 15 consecutive years and has a market capitalization of $12.67 billion.