Moody’s Corp. (MCO) Downgraded by Zacks Investment Research
According to Zacks, “Moody’s remains a solid franchise in rating debt instruments based on its diversified credit research business model and international growth opportunities. Sustained growth should come from strong potential in the analytics business and diversified client base. Recently, driven by higher issuance activity and its cost containment efforts, Moody's has raised its earnings expectations for the current year whereas revenues are expected to be up in low single digits as projected earlier. Estimates have been going up ahead of the company’s third quarter earnings release. However, regulatory concerns and stiff competition remain headwinds going ahead.”
MCO has been the topic of a number of other research reports. Barclays PLC dropped their target price on Moody’s Corp. from $120.00 to $95.00 and set an overweight rating on the stock in a research report on Tuesday, August 23rd. Cantor Fitzgerald reiterated a hold rating on shares of Moody’s Corp. in a research report on Friday, August 19th. BMO Capital Markets reiterated a market perform rating and issued a $112.00 target price (up previously from $104.00) on shares of Moody’s Corp. in a research report on Friday, September 30th. Credit Suisse Group AG started coverage on Moody’s Corp. in a research report on Monday, July 11th. They issued a neutral rating and a $99.00 target price on the stock. Finally, Morgan Stanley reiterated an overweight rating and issued a $114.00 target price on shares of Moody’s Corp. in a research report on Tuesday, July 19th. Eight equities research analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company’s stock. Moody’s Corp. currently has an average rating of Hold and a consensus price target of $109.29.
Shares of Moody’s Corp. (NYSE:MCO) opened at 107.58 on Friday. Moody’s Corp. has a one year low of $77.76 and a one year high of $110.83. The stock has a market cap of $20.68 billion, a P/E ratio of 24.02 and a beta of 1.35. The stock’s 50 day moving average is $108.35 and its 200-day moving average is $101.11.
Moody’s Corp. (NYSE:MCO) last issued its quarterly earnings results on Friday, July 22nd. The company reported $1.30 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.27 by $0.03. Moody’s Corp. had a negative return on equity of 273.01% and a net margin of 25.81%. The business had revenue of $928.90 million for the quarter, compared to analyst estimates of $909.08 million. During the same quarter in the previous year, the firm earned $1.28 earnings per share. The company’s revenue was up 1.2% on a year-over-year basis. On average, equities analysts forecast that Moody’s Corp. will post $4.63 EPS for the current year.
In other news, VP Linda Huber sold 182,595 shares of the company’s stock in a transaction that occurred on Tuesday, September 6th. The stock was sold at an average price of $110.13, for a total transaction of $20,109,187.35. Following the completion of the transaction, the vice president now directly owns 63,637 shares of the company’s stock, valued at approximately $7,008,342.81. The sale was disclosed in a filing with the SEC, which is available at this link. Also, SVP Blair Worrall sold 11,054 shares of the company’s stock in a transaction that occurred on Friday, August 12th. The stock was sold at an average price of $103.39, for a total value of $1,142,873.06. Following the transaction, the senior vice president now directly owns 13,062 shares of the company’s stock, valued at $1,350,480.18. The disclosure for this sale can be found here. 1.48% of the stock is owned by company insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in MCO. Pacad Investment Ltd. increased its position in Moody’s Corp. by 54.3% in the first quarter. Pacad Investment Ltd. now owns 5,400 shares of the company’s stock valued at $521,000 after buying an additional 1,900 shares in the last quarter. Ngam Advisors L.P. increased its position in Moody’s Corp. by 1.6% in the first quarter. Ngam Advisors L.P. now owns 49,900 shares of the company’s stock valued at $4,818,000 after buying an additional 787 shares in the last quarter. Franklin Resources Inc. increased its position in Moody’s Corp. by 2.6% in the first quarter. Franklin Resources Inc. now owns 322,146 shares of the company’s stock valued at $31,107,000 after buying an additional 8,201 shares in the last quarter. BlackRock Group LTD increased its position in Moody’s Corp. by 2.6% in the first quarter. BlackRock Group LTD now owns 1,776,825 shares of the company’s stock valued at $171,570,000 after buying an additional 44,210 shares in the last quarter. Finally, BlackRock Institutional Trust Company N.A. increased its position in Moody’s Corp. by 2.3% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 4,932,414 shares of the company’s stock valued at $476,274,000 after buying an additional 112,991 shares in the last quarter. 86.91% of the stock is owned by institutional investors and hedge funds.
About Moody’s Corp.
Moody’s Corporation (Moody’s) is a provider of credit ratings; credit, capital markets and economic related research, data and analytical tools; software solutions and related risk management services; quantitative credit risk measures, financial services training and certification services, and outsourced research and analytical services to financial institution customers.
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