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S&P Global Inc. (SPGI) has navigated volatility amid rising inflation rates and geopolitical factors affecting the market over the past year. Ultimately, the stock has closely shadowed the S&P 500’s performance and recently made its mark on the WhaleWisdom Heatmap with a rank of four. While S&P Global saw improvement in recent months, overall, its price has declined about 20% year-to-date compared to the S&P 500’s loss of approximately 10% as of September 15, 2022.

S&P Global, formerly known as McGraw-Hill Inc., is a corporation focused on financial information and analytics. It is a parent company with six key business lines: Commodity Insights, Dow Jones Indices, Engineering Solutions, S&P Global Market Intelligence, and S&P Global Ratings. S&P Global and its subsidiaries collectively provide independent credit ratings, analytics, benchmarks, and workflow solutions for various worldwide markets, deriving much of its revenue from recurring subscription fees. Earlier this year, S&P Global merged with IHS Markit Ltd. with a focus on combining their complementary assets and technological capabilities to serve customers better.

Hedge Funds and Institutions Sell

Hedge Funds adjusted their portfolios in the second quarter, and the aggregate 13F shares held decreased to approximately $59.6 million from $67.5 million, a slide of about 11.8%. Overall, 28 hedge funds created new positions, 117 added, 48 exited, and 126 reduced their holdings. Institutions also sold and lowered their holdings by about 5.7% to $290.9 million.


Encouraging Estimates

Analysts anticipate positive revenue momentum, with growth increases that could bring revenue to approximately $13.0 billion by December 2023, up from an estimated $12.0 billion in 2022. Year-over-year estimated increases could also bring earnings to $13.87 per share by December 2023, up from a predicted $11.48 for December 2022. The 13F metrics between 2007 and 2022 show that funds held remain on an upward trajectory despite fluctuations in S&P Global’s stock price.


Analysts Increase Ratings

Analysts have become bullish on the stock, raising their price targets and ratings. Analyst Sameer Kalucha of Deutsche Bank raised the firm’s price target on S&P Global to $450 from $435 and kept a Buy rating on shares. Morgan Stanley analyst Toni Kaplan adjusted the firm’s price target to $476 from $460. Kaplan believes that Ratings revenue will increase and maintains an Overweight rating on S&P Global’s shares. RBC Capital Markets initiated coverage of S&P Global with an Outperform rating. Analyst Ashish Sabadra of RBC Capital thought well of the February 2022 acquisition of IHS Markit and set a price target of $476.

Fair Outlook

S&P Global’s performance has shown improvement in recent months, and there are predictions for continued revenue growth. As businesses and governments continue leveraging data analytics and technology to make better decisions, S&P Global’s services will likely see ongoing demand. Analysts’ 2023 earnings estimate for S&P Global is encouraging for investors.

This entry was posted on Monday, September 19th, 2022 at 7:40 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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