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- 1 Marsh & McLennan’s stock price closed at $193.93 with a loss of 0.5% during the last intraday session.
- 2 MMC to acquire Australia’s Honan Insurance Group.
- 3 Berkshire Hathway closes its remaining position in MMC stock.
Marsh & McLennan (MMC) stock price has been in a strong uptrend, forming higher lows since mid-March 2023. The stock price has surged 16.61% year-to-date and formed an all-time high at $197.79.
The stock price has faced strong rejection near $200 and entered into a correction phase. The last candle closed as a bullish candle and was successful in forming support at $192.
If the next candle can break the high of the last candle, the price might retest the resistance level of $197 and potentially shatter the all-time high to rise further toward $200. On the other hand, if the next candle breaks the low of the last candle, MMC stock price might head down toward the recent support of $187.70.
Warren Buffet Sold its Stake And MMC Acquires Honan Insurance Group
Former CEO of Marsh & McLennan, Dan Glaser stated “When world is unsettled, demand for our services rises” which perfectly sums up the company’s business. According to the Marsh Global Market Index, global insurance prices have surged for 23 consecutive quarters. As there is a hike in insurance price, so is rise in Marsh’s revenue.
Till now, Marsh & McLennan Companies’ risk and insurance services revenue has spiked by 11% from the same period the prior year and was also the key to the insurance company’s 8% total revenue growth.
Berkshire Hathaway closed its remaining position in Marsh & McLennan after generating a return of roughly 60% from the stock. Berkshire Hathaway bought the shares in Q4 2020 and began trimming positions in 2021.
One possible reason for Berkshire Hathaway’s closing position might be its valuation. During Q4, the company traded about 3.5x of its sales and currently, it is valued at more than 4.5x sales, which is its highest valuation during the past decade.
Marsh has agreed to acquire Honan Insurance Group on 21 August 2023 for undisclosed terms. The deal is expected to close by the end of 2023 but is subject to regulatory approval.
Will MMC Stock Price Break All-Time High?
The stock price has propelled above 20, 50, 100, and 200-day exponential moving averages, indicating bullish momentum. The 20-day EMA has been acting as a support for the price. However, the Chaikin money flow (CMF) score has dropped below the 0 mark and stands at -0.16, suggesting weakness in the market.
CMF is showing divergence with the price action as the stock price is highly bullish. The relative strength index stands at 56.50, implying bullish momentum. The Bollinger bands have also slightly expanded suggesting a rise in volatility.
Conclusion
According to Marsh’s global insurance market index, global commercial insurance prices rose 3% in the second quarter and 4% in the previous quarter which shows growth in the insurance sector that will positively affect Marsh & McLennan’s business.
Technical Levels
- Major support: $192 and $187.70
- Major resistance: $197 and $200
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
