Morningstar, Inc. - MORN STOCK NEWS

Morningstar (Nasdaq: MORN) has launched the Morningstar PitchBook Unicorn 30 Index (UI30), tracking the 30 largest and most liquid late-stage venture capital-backed private companies valued at $1 billion or more. The index, developed through collaboration between Morningstar Indexes and PitchBook, includes prominent companies like SpaceX, Stripe, OpenAI, and SHEIN.

The index employs screens for liquidity challenges and uses a market-driven pricing model combining actual transaction data from multiple secondary market price aggregators. It aims to provide greater transparency and accessibility to the late-stage venture capital market for various investor uses, from benchmarking to investable product creation.

According to Morningstar, venture capital now represents 9% of the global equity market, up from 2% a decade ago, highlighting the growing importance of private markets in the global economy.

Morningstar (Nasdaq: MORN) has launched Direct Advisory Suite, a modern software application designed to streamline financial advisors' workflows. Built on the Direct Platform, this comprehensive solution enhances the capabilities of the current Advisor Workstation, offering improved features for research, portfolio building, and client proposal generation.

The suite includes comprehensive research tools powered by Morningstar's database, investment planning features utilizing the Morningstar Portfolio Risk Score, proposal generation with Scenario Builder, one-click portfolio optimization, and an AI chatbot named Mo for quick insights. The platform aims to improve advisor efficiency and client engagement.

Direct Advisory Suite is currently available in North America, with planned expansion to EMEA and APAC markets later this year. Existing Advisor Workstation clients will be upgraded to Direct Advisory Suite throughout 2025.

Morningstar (MORN) has appointed Michael Holt as its new Chief Financial Officer, effective January 1, 2025, succeeding Jason Dubinsky who will transition to a consulting role. Holt, currently serving as Chief Strategy Officer and president of the Research and Investments group, will report to CEO Kunal Kapoor and lead the global finance organization.

Holt joined Morningstar in 2008 as an equity analyst and has held various leadership positions, including leading the global equity research team from 2014 to 2018. In his current role, he oversees a 400-person team responsible for equity and managed investment analysis, ratings, and portfolio construction. He holds a CFA designation, an MBA from the University of Chicago Booth School of Business, and a bachelor's degree from Indiana University.

Morningstar (Nasdaq: MORN) has announced an increase in its quarterly dividend to 45.5 cents per share, representing a 12.3% increase from the previous rate of 40.5 cents. The next dividend will be payable on January 31, 2025, to shareholders of record as of January 3, 2025. This increase raises the expected annualized dividend from $1.62 to $1.82 per share. The company has also outlined three additional planned dividend payments for 2025, scheduled for April 30, July 31, and October 31, subject to board approval.

Morningstar DBRS has appointed Richard Sibthorpe as Head of Canada and Global Investor Strategy, succeeding Douglas E. Turnbull who retired in September. Sibthorpe, who joined from BMO Capital Markets with over 20 years of credit markets experience, will oversee Toronto operations and senior outreach activities while focusing on emerging opportunities in evolving lending markets. The appointment comes amid increasing demand for credit ratings driven by private credit markets expansion and changing risk criteria. Morningstar DBRS currently rates over 4,000 issuers and 60,000 securities globally, positioning itself as one of the top four credit rating agencies worldwide.

Morningstar has released its Medalist Ratings for 59 of the nation's leading 529 college-savings plans, representing over 95% of the industry's assets as of August 31, 2024. The ratings, determined by Morningstar's research analysts, include 11 upgrades and nine downgrades. This comprehensive evaluation covers the majority of the 529 college savings market, providing valuable insights for investors and education savers.

Morningstar announced that CFO Jason Dubinsky will step down from his role at the end of 2024 to pursue other interests. During his seven-year tenure since 2017, the company's value tripled while revenue, operating profit, and cash flow more than doubled. Dubinsky will continue as CFO until December 31, 2024, and remain in a consulting role through June 30, 2025, to ensure a smooth transition. The company has initiated a succession process and reported Q3 earnings showing continued growth and margin expansion.

Morningstar (MORN) reported strong Q3 2024 financial results with revenue increasing 10.5% to $569.4 million and organic revenue growing 10.1%. Operating income surged 65% to $115.5 million, while diluted EPS rose 204.4% to $2.77. The company's performance was driven by strength across most business segments, particularly Morningstar Credit, PitchBook, and Data & Analytics. Operating margin expanded to 20.3% from 13.6% year-over-year. The company also reported improved cash flows, with operating cash flow increasing 46.8% to $191.9 million and free cash flow rising 53.6% to $155.8 million.

Morningstar has released its eighth annual study on Health Savings Accounts (HSAs), evaluating 11 top providers for both investment and spending use cases. The study reveals significant improvements in HSA features, including lower fees and better investment options. However, only four providers received an Above Average or better rating for both use cases.

Key findings include:

• Total HSA assets reached $123 billion in 2023
• Fidelity leads providers with a High assessment for both spending and savings accounts
• HSA contribution limits are set to increase in 2025
• Providers' investment menus are strong, with at least 89% of each lineup consisting of funds with Gold, Silver, or Bronze Morningstar Medalist Ratings

The study emphasizes the need for improved transparency and participant awareness to maximize HSA potential.