How Does Morningstar Inc. Rate its Own Stock?

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Oct 14, 2009
(GuruFocus, October 14, 2009) Morningstar Inc. is a leading provider of investment research in the United States and in major international markets. The company offers an extensive line of Internet software and print-based products and services for individuals financial advisors and institutional clients.


It is a great business to own. It provides investment information and investment management services. None of which is terrible capital intensive. Since it went to public, it enjoyed good growth in both revenue and EPS. Operating Margins are high. Competitions are ample, but Morningstar enjoy a good brand name. So is its economic moat.





Per Share Data Annuals (Year End)Quarterly
Fiscal PeriodDec05Dec06Dec07Dec08TTMJun08Sep08Dec08Mar09Jun09
Revenue per Share ($)5.687.559.8910.7410.232.892.702.552.472.51
EBITDA per Share1.372.213.153.533.411.050.870.770.900.87
Free Cashflow per Share1.022.252.302.222.040.810.800.73-0.270.78
Earnings Per Share ($)0.781.241.681.981.850.610.480.410.530.43
Book Value Per Share4.346.459.2811.4512.9710.8911.3211.4511.9212.97



Everything is going on great except the company’s Chairman and CEO is selling 90,000 shares each day these days! He has been selling shares since October of 2008. His sales were not interrupted during the market turmoil during the first half of the year.


Joining him in selling the company’s stock is Donald James Phillips II, a managing director of the company. Here is a list of recent transactions:


Insider Position Date Trades Shares Trade Price ($) Change (%)
Mansueto Joseph D Chairman & CEO 2009-10-13 Sell 9300 $52.4 -0.97
Phillips Donald James II Managing Director 2009-10-09 Sell 24800 $50.88 1.99
Phillips Donald James II Managing Director 2009-10-08 Sell 27300 $50.8 2.15
Mansueto Joseph D Chairman & CEO 2009-10-07 Sell 6341 $49.53 4.76
Phillips Donald James II Managing Director 2009-10-06 Sell 400 $50 3.78
Mansueto Joseph D Chairman & CEO 2009-10-06 Sell 9000 $49.14 5.6
Mansueto Joseph D Chairman & CEO 2009-10-05 Sell 9000 $47.68 8.83
Mansueto Joseph D Chairman & CEO 2009-09-30 Sell 9000 $47.23 9.87
Mansueto Joseph D Chairman & CEO 2009-09-29 Sell 9000 $47.27 9.77
Mansueto Joseph D Chairman & CEO 2009-09-28 Sell 9000 $47.19 9.96



Perhaps the stock research company rating its own stock a “sell”.


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