Berkeley Capital Sees Value in Morningstar Dip, Initiates $3.8 Million Position

In a move catching the eye of value investors, Berkeley Capital Partners reported a new $3.8 million position in Morningstar, Inc. (NASDAQ: MORN), according to a recent SEC filing. The filing shows the firm acquired 17,382 shares of the financial research giant during the fourth quarter, making it a 1.2% holding within Berkeley's $314 million portfolio.

The purchase comes at a time when Morningstar shares have faced considerable pressure. As of late January 2026, the stock was trading near $204.66, down approximately 39% over the past year and significantly underperforming the broader S&P 500. This slump reflects broader market skepticism towards data and research-focused firms as investors grapple with the potential disruptive—or enabling—role of artificial intelligence.

Morningstar, a global leader in independent investment research and data, has seen its sales growth slow to single digits after a decade of stronger expansion. The decline has pushed its valuation to a price-to-earnings multiple of 23, its lowest since 2019, while its dividend yield has risen to a multi-year high.

Analysts suggest Berkeley's timing may be strategic. "This looks like a classic 'buy-the-dip' play by a disciplined investor," said Michael Reeves, a portfolio manager at Stratton Advisory. "Morningstar's brand, deep data assets, and client relationships are durable. The current price seems to discount the AI risk heavily while ignoring the company's potential to leverage AI as a tool to enhance its own analytics."

The investment highlights a key debate in the financial sector: whether established data providers will be disrupted by AI or empowered by it. For firms like Berkeley, the current sell-off may present a window to acquire stakes in essential financial infrastructure at a discount.

Investor Reactions: A Mix of Conviction and Skepticism

We gathered reactions from several investors following the news:

• David Chen, Long-term Value Investor: "Berkeley has a history of patience. Morningstar's moat is wider than the market thinks. This isn't just data; it's trusted analysis and a workflow integrated into thousands of institutions. AI is a new tool for them, not a replacement."
• Sarah Gibson, Fintech Analyst at Horizon Insights: "It's a calculated risk. The fundamentals have weakened, but you're paying a 2019 multiple for a business that has grown since then. If AI integration goes well, this could be a very savvy entry point."
• Marcus "Ray" Holt, Independent Trader (sharper tone): "Are you kidding me? This is catching a falling knife. The whole model of paid investment research is under siege from free AI agents. Buying a 'discount' on a potentially obsolete business is not value investing—it's nostalgia. Berkeley might be too early by years."
• Priya Sharma, ESG & Data Funds Manager: "The quality of data is paramount, and Morningstar's curated datasets, especially in sustainability, are hard to replicate. This dip could be an opportunity for those who believe in the enduring value of high-integrity financial information."

Disclosure: This analysis is for informational purposes only. It is not a recommendation to buy or sell any security. Investors should conduct their own research.