Core Viewpoint - Morningstar, Inc. (NASDAQ: MORN) is rated as a Hold for investors focused on capital appreciation, with a recommendation to buy shares on a pullback due to its outperformance compared to the S&P 500 Index [1]. Company Analysis - The company has shown strong performance relative to the S&P 500 Index, indicating potential for long-term investment [1]. - The recommendation for a buy on pullback suggests that there may be opportunities to acquire shares at a more favorable price in the future [1]. Analyst Background - The analysis is provided by David A. Johnson, who has over 30 years of investment experience and holds advanced degrees in finance and business administration [1].

Company Overview - Trinity Capital Inc. is a leading alternative asset manager focused on providing stable and consistent returns through access to the private credit market [3] - The company sources, vets, and invests in growth-oriented privately funded companies, offering investors a diversified portfolio [3] - Headquartered in Phoenix, Arizona, Trinity has an international presence supported by a dedicated team of investment professionals [3] Credit Rating - DBRS, Inc. has confirmed Trinity Capital's investment grade credit rating of "BBB (low)" with a stable outlook [1] - Morningstar DBRS is recognized as a leading provider of independent rating services, rating over 4,000 issuers and 60,000 securities globally [2]

CONCORD, Calif., Dec. 02, 2024 (GLOBE NEWSWIRE) -- AssetMark, Inc., a leading provider of wealth management and technology solutions for financial advisors, today announced the close of its acquisition of Morningstar Wealth’s Turnkey Asset Management Platform (TAMP) assets. This acquisition, a key milestone in the strategic alliance between AssetMark and Morningstar Wealth, brings approximately $12 billion in assets to AssetMark’s platform, broadening its array of investment solutions for financial advisors ...

Core Viewpoint - The iShares Morningstar Mid-Cap Growth ETF (IMCG) is designed to provide broad exposure to the Mid Cap Growth segment of the US equity market, with a focus on companies that have a market capitalization between $2 billion and $10 billion, offering a balance of stability and growth potential [1][2]. Group 1: Fund Overview - IMCG is a passively managed ETF launched on June 28, 2004, and is sponsored by Blackrock, with assets exceeding $2.58 billion [1]. - The ETF has an annual operating expense ratio of 0.06%, making it one of the least expensive options in its category [5]. - It has a 12-month trailing dividend yield of 0.75% [6]. Group 2: Sector Exposure and Holdings - The ETF has the highest allocation to the Industrials sector, comprising about 25% of the portfolio, followed by Information Technology and Consumer Discretionary [7]. - Palantir Technologies Inc Class A (PLTR) accounts for approximately 1.83% of total assets, with Autodesk Inc (ADSK) and Hilton Worldwide Holdings Inc (HLT) also among the top holdings [8]. - The top 10 holdings represent about 10.39% of total assets under management [9]. Group 3: Performance Metrics - IMCG aims to match the performance of the Morningstar US Mid Cap Broad Growth Index, which includes mid-cap U.S. equities with growth characteristics [10]. - The ETF has increased by approximately 25.70% year-to-date and is up about 36.55% over the past year as of November 26, 2024 [10]. - Over the past 52 weeks, the ETF has traded between $59.20 and $80.59 [10]. Group 4: Risk and Diversification - IMCG has a beta of 1.08 and a standard deviation of 21.29% for the trailing three-year period, indicating a moderate level of volatility [11]. - The ETF holds about 306 different securities, effectively diversifying company-specific risk [11]. Group 5: Alternatives and Market Position - IMCG holds a Zacks ETF Rank of 2 (Buy), indicating strong expected performance based on various factors [12]. - Other comparable ETFs include the Vanguard Mid-Cap Growth ETF (VOT) with $15.91 billion in assets and an expense ratio of 0.07%, and the iShares Russell Mid-Cap Growth ETF (IWP) with $18.31 billion in assets and an expense ratio of 0.23% [13]. Group 6: Investment Appeal - Passively managed ETFs like IMCG are increasingly favored by retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [14].

Group 1 - The article discusses the evolution of market update platforms since 2008, highlighting the competition in the space and the limited number of companies that specialize in providing high-quality benchmarks [1] - It emphasizes the importance of independent analysis and the role of various analysts, including both professional and individual investors, in contributing to market insights [2]

Financial Performance - Consolidated revenue for Q3 2024 was $569.4 million, representing a 10.5% increase from $515.5 million in Q3 2023[107] - Operating income for Q3 2024 reached $115.5 million, up 65.0% from $70.0 million in Q3 2023[107] - Operating margin improved to 20.3% in Q3 2024, compared to 13.6% in Q3 2023, reflecting a 6.7 percentage point increase[107] - Total consolidated revenue for the nine months ended September 30, 2024, was $1,684.1 million, a 12.3% increase from $1,499.9 million in the same period of 2023[107] - Adjusted operating income for the nine months ended September 30, 2024, was $316.6 million, reflecting a 132.5% increase from $136.2 million in the same period of 2023[107] Cash Flow - Cash provided by operating activities was $191.9 million in Q3 2024, a 46.8% increase from $130.7 million in Q3 2023[107] - Free cash flow for Q3 2024 was $155.8 million, up 53.6% from $101.4 million in Q3 2023[107] - Cash provided by operating activities for the first nine months of 2024 was $438.2 million, compared to $178.6 million in the prior-year period, reflecting an increase of 145.4%[158] - Free cash flow for the first nine months of 2024 reached $336.1 million, a substantial increase of 275.5% compared to $89.5 million in the same period last year[170] Revenue Breakdown - License-based revenue grew by $24.3 million, or 6.3%, in Q3 2024, driven by strong demand for PitchBook and Morningstar Data and Analytics products[113] - Asset-based revenue increased by $12.3 million, or 17.2%, in Q3 2024, primarily due to growth in Morningstar Wealth, Morningstar Retirement, and Morningstar Indexes[113] - Transaction-based revenue rose by $17.3 million, or 29.1%, in Q3 2024, mainly driven by Morningstar Credit revenue[113] - License-based revenue for the first nine months grew by $86.2 million, or 7.7%, with organic growth of 7.9% attributed to PitchBook and Morningstar Data and Analytics[114] - Asset-based revenue for the first nine months increased by $41.4 million, or 20.3%, driven by Morningstar Wealth, Morningstar Retirement, and Morningstar Indexes[114] - Transaction-based revenue for the first nine months rose by $56.6 million, or 33.0%, with organic growth of 30.3% primarily from Morningstar Credit[114] Expenses and Margins - Total operating expenses increased by $8.4 million, or 1.9%, in Q3 2024, with cost of revenue being the largest category[117] - Compensation expense rose by $16.2 million in Q3 2024, primarily due to increased bonus accruals[118] - General and administrative expenses decreased by $12.1 million in Q3 2024, largely due to a decline in SEC-related settlement expenses[124] - Cost of revenue increased by $19.8 million in Q3 2024, driven by higher compensation and technology infrastructure costs[122] - Operating margin for the first nine months of 2024 was 18.8%, an increase of 9.7 percentage points compared to the same period in 2023[128] Tax and Income - Income before income taxes for the three months ended September 30, 2024, was $149.3 million, a significant increase from $55.8 million in the same period last year, representing a growth of 167.5%[157] - The effective tax rate decreased to 19.8% in Q3 2024, down from 29.9% in Q3 2023, primarily due to a book gain from the sale of the Commodity and Energy Data business[157] Capital Expenditures and Debt - Capital expenditures for Q3 2024 were $(36.1) million, a 23.2% increase from $(29.3) million in Q3 2023[107] - Capital expenditures for the first nine months of 2024 increased to $102.1 million, compared to $89.1 million in the prior-year period, reflecting a growth of 14.6%[170] - The company’s total outstanding debt under the Amended 2022 Credit Agreement was $515.9 million as of September 30, 2024, with borrowing availability of $650.0 million under the revolving credit facility[161] Shareholder Returns - A regular quarterly dividend of $0.405 per share was approved in September 2024, amounting to $17.4 million, payable on October 31, 2024[166] - The company did not repurchase any shares under the share repurchase program for the three and nine months ended September 30, 2024, leaving $498.6 million available for future repurchases[167] Foreign Currency Exposure - The company is subject to risks from fluctuations in foreign currencies from operations outside the United States, with no current positions in derivative instruments to hedge this risk[176] - The estimated effect of a 10% adverse currency fluctuation on revenue is $(4.8) million for Australian Dollars, $(12.9) million for British Pounds, $(10.4) million for Canadian Dollars, $(11.2) million for Euros, and $(9.4) million for other foreign currencies[176] - The estimated effect of a 10% adverse currency fluctuation on operating income is $(1.9) million for Australian Dollars, $2.0 million for British Pounds, $(1.5) million for Canadian Dollars, $(2.9) million for Euros, and $3.7 million for other foreign currencies[176] Corporate Governance - The company has no changes in internal control over financial reporting that materially affected its internal control during the three months ended September 30, 2024[181] - The company’s disclosure controls and procedures were deemed effective as of September 30, 2024, providing reasonable assurance for timely disclosure of required information[180]

News Release 22 West Washington Street Telephone: +1 312 696-6000 Chicago Facsimile: +1 312 696-6009 Illinois 60602 FOR IMMEDIATE RELEASE Morningstar, Inc. Reports Third-Quarter 2024 Financial Results CHICAGO, Oct. 23, 2024 - Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, posted double-digit third-quarter revenue growth while expanding operating margins. "Morningstar Credit led the way in the quarter with additional contributions from across the business supporting ...

The collaboration enables independent advisors to deliver holistic advisory services across the full balance sheet with integrated SBL capabilities to see the borrowing power for portfolios. NEW YORK, Sept. 15, 2024 /PRNewswire/ -- Global fintech leader Broadridge Financial Solutions, Inc. (NYSE:BR) announces the securities-based lending (SBL) tools in its Wealth Lending Network (WLN) marketplace are now integrated in Morningstar Advisor Workstation. Extending beyond Workstation's core research, investment ...

CONCORD, Calif., Sept. 12, 2024 (GLOBE NEWSWIRE) -- AssetMark, a leading provider of wealth management and technology solutions for financial advisors, announced the addition of Morningstar Wealth, a division of independent investing insights firm Morningstar, as a third-party strategist on the AssetMark Platform. This launch will enable financial advisors currently working with AssetMark to access a wide range of model portfolios and separately managed accounts ("SMAs") from the Morningstar Investment Mana ...

General and administrative expense decreased $9.8 million in the second quarter of 2024. A decline in professional fees of $5.0 million was the largest contributor to the decline during the quarter due to the factors noted above. Facilitiesrelated expenses also declined $4.5 million during the second quarter of 2024 due to the factors noted above. Depreciation and Amortization | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------|-------|--------------|------- ...