Is S&P Global Inc. (NYSE: SPGI) Back In The Buying Zone?


T. Rowe Price Associates, Inc. (I. recently announced the acquisition of new stake in S&P Global Inc. (NYSE:SPGI). The institutional investor has increased its shareholding in the Financial company by 13.39% to 7.45 million shares with purchase of 0.88 million shares. This fresh investment now brings its stake to 3.09% valued currently at $2.45 billion. In addition, Capital Research & Management Co. raised its holdings by 1.59 million to 3.37 million shares. And Capital Research & Management Co. has lifted its position by 52.20% or 1.12 million shares – to 3.26 million shares.

With over 0.72 million S&P Global Inc. (SPGI) shares trading Tuesday and a closing price of $351.64 on the day, the dollar volume was approximately $254.76 million. The shares have shown a positive weekly performance of 3.06% and its price on 07/14/20 gained nearly 1.60%. Currently, there are 242.10M common shares owned by the public and among those 240.42M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 16 analysts who have offered their price forecasts for SPGI have a consensus price objective of $348.17. The analysts have set the share’s price value over the next 12 months at a high of $397.00 and a low of $260.00 should the stock experience a downside. Incidentally, analysts’ outlook for the S&P Global Inc. stock is 2.00 for the next 12 months. The average price target is -0.47% below its last price level and a downside to the estimated low will see the stock lose -35.25% over that period. But an upside of 11.43% will see the stock hit the forecast high price target while mean target price for the stock is $358.50.

Insiders at the company have transacted a total of 133 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 59 of these insider trades were purchases, accounting for 71,434 shares. Insider sales of the common stock occurred on 74 occasions, with total insider shares sold totaling 72,130 shares.

The top 3 mutual fund holders in S&P Global Inc. are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and SPDR S&P 500 ETF. Vanguard Total Stock Market Index owns 7.05 million shares of the company’s stock, all valued at over $2.32 billion. The company sold 35670.0 shares recently to bring their total holdings to about 2.93% of the shares outstanding. Vanguard 500 Index Fund sold 9686.0 shares to see its total holdings shrink to 4.99 million shares valued at over $1.64 billion and representing 2.07% of the shares outstanding. SPDR S&P 500 ETF sold 17690.0 shares to bring its total holdings to over 2.57 million shares at a value of $845.83 million. SPDR S&P 500 ETF now owns shares totaling to 1.07% of the shares outstanding.

Shares of S&P Global Inc. (NYSE: SPGI) opened at $344.93, down -$1.16 from a prior closing price of $346.09. However, the script later closed the day at $351.64, up 1.60%. The company’s stock has a 5-day price change of 3.06% and 26.79% over the past three months. SPGI shares are trading 28.78% year to date (YTD), with the 12-month market performance up to 45.98% higher. It has a 12-month low price of $186.05 and touched a high of $356.79 over the same period. Currently, 0.72 million shares have been traded, compared to an average intraday trading volume of 1.33 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.77%, 9.95%, and 25.40% respectively.

Institutional ownership of S&P Global Inc. (NYSE: SPGI) shares accounts for 86.10% of the company’s 242.10M shares outstanding. Mutual fund holders own 39.44%, while other institutional holders and individual stakeholders account for 46.88% and 0.21% respectively.

It has a market capitalization of $84.93B and a beta (3y monthly) value of 1.05. The stock’s trailing 12-month PE ratio is 36.72, while the earnings-per-share (ttm) stands at $9.58. The company has a PEG of 4.37 and a Quick Ratio of 1.20. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.47% over the week and 2.50% over the month.

Analysts forecast that S&P Global Inc. (SPGI) will achieve an EPS of $2.65 for the current quarter, $2.43 for the next quarter and $11.04 for 2021. The lowest estimate earnings-per-share for the quarter is $2.33 while analysts give the company a high EPS estimate of $2.91. Comparatively, EPS for the current quarter was $2.43 a year ago. Earnings per share for the fiscal year are expected to increase by 11.20%, and 7.70% over the next financial year. EPS should shrink at an annualized rate of 8.40% over the next five years, compared to 58.40% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 16 brokerage firm advisors rate S&P Global Inc. (SPGI) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 11 Wall Street analysts polled rate the stock as a buy, while 4 of the 16 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the SPGI, a number of firms have released research notes about the stock. Goldman stated their Buy rating for the stock in a research note on July 08, 2020, with the firm’s price target at $336-$397. Credit Suisse coverage for the S&P Global Inc. (SPGI) stock in a research note released on May 29, 2020 offered a Outperform rating with a price target of $345. Oppenheimer was of a view on May 19, 2020 that the stock is Outperform, while BMO Capital Markets gave the stock Outperform rating on January 27, 2020, issuing a price target of $266- $326. Raymond James on their part issued Mkt Perform rating on January 17, 2020.


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