Generation Investment Management LLP Cuts Stock Position in Moody’s Corporation $MCO

Generation Investment Management LLP lessened its holdings in Moody’s Corporation (NYSE:MCO) by 6.2% during the 3rd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 254,169 shares of the business services provider’s stock after selling 16,905 shares during the period. Moody’s makes up about 0.8% of Generation Investment Management LLP’s investment portfolio, making the stock its 24th largest position. Generation Investment Management LLP’s holdings in Moody’s were worth $121,106,000 at the end of the most recent quarter.

Several other institutional investors have also bought and sold shares of the business. Norges Bank bought a new stake in shares of Moody’s in the 2nd quarter worth about $987,524,000. Vanguard Group Inc. lifted its holdings in shares of Moody’s by 1.3% in the 2nd quarter. Vanguard Group Inc. now owns 15,006,997 shares of the business services provider’s stock valued at $7,527,360,000 after acquiring an additional 191,368 shares during the last quarter. Marshall Wace LLP grew its position in Moody’s by 223.8% in the second quarter. Marshall Wace LLP now owns 102,126 shares of the business services provider’s stock worth $51,225,000 after acquiring an additional 184,598 shares in the last quarter. Sei Investments Co. increased its stake in Moody’s by 91.0% during the second quarter. Sei Investments Co. now owns 235,237 shares of the business services provider’s stock worth $117,987,000 after acquiring an additional 112,105 shares during the last quarter. Finally, Corient Private Wealth LLC raised its position in Moody’s by 87.2% during the second quarter. Corient Private Wealth LLC now owns 200,190 shares of the business services provider’s stock valued at $100,414,000 after purchasing an additional 93,244 shares during the period. Institutional investors own 92.11% of the company’s stock.

Moody’s Price Performance

Shares of MCO stock opened at $436.67 on Tuesday. The company has a market capitalization of $77.42 billion, a P/E ratio of 31.92, a P/E/G ratio of 2.31 and a beta of 1.44. The company’s 50-day simple moving average is $496.06 and its two-hundred day simple moving average is $493.10. Moody’s Corporation has a one year low of $378.71 and a one year high of $546.88. The company has a debt-to-equity ratio of 1.66, a current ratio of 1.74 and a quick ratio of 1.74.

Moody’s (NYSE:MCO) last announced its quarterly earnings results on Wednesday, February 18th. The business services provider reported $3.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.39 by $0.25. Moody’s had a return on equity of 66.01% and a net margin of 31.86%.The firm had revenue of $1.89 billion during the quarter, compared to analyst estimates of $1.87 billion. During the same quarter in the previous year, the business earned $2.62 earnings per share. Moody’s’s quarterly revenue was up 13.0% on a year-over-year basis. Moody’s has set its FY 2026 guidance at 16.400-17.000 EPS. As a group, equities analysts anticipate that Moody’s Corporation will post 13.95 EPS for the current year.

Moody’s Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Stockholders of record on Monday, March 2nd will be given a dividend of $1.03 per share. This represents a $4.12 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Monday, March 2nd. This is a positive change from Moody’s’s previous quarterly dividend of $0.94. Moody’s’s dividend payout ratio is currently 27.49%.

Analyst Ratings Changes

A number of equities analysts have recently commented on MCO shares. Wall Street Zen upgraded Moody’s from a “hold” rating to a “buy” rating in a report on Saturday. Evercore restated an “outperform” rating and issued a $610.00 price target on shares of Moody’s in a research report on Thursday. JPMorgan Chase & Co. cut their price objective on shares of Moody’s from $600.00 to $560.00 and set an “overweight” rating on the stock in a research report on Thursday, February 19th. BMO Capital Markets reaffirmed a “market perform” rating on shares of Moody’s in a research note on Thursday. Finally, Stifel Nicolaus reduced their price objective on shares of Moody’s from $574.00 to $540.00 and set a “buy” rating on the stock in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Moody’s currently has a consensus rating of “Moderate Buy” and an average price target of $551.88.

Insider Activity at Moody’s

In related news, CEO Robert Fauber sold 592 shares of Moody’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $516.15, for a total value of $305,560.80. Following the completion of the sale, the chief executive officer directly owned 61,082 shares in the company, valued at $31,527,474.30. The trade was a 0.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Corporate insiders own 0.14% of the company’s stock.

Moody’s Profile

Moody’s Corporation is a global provider of credit ratings, research, data and analytics that support financial decision-making and transparency in capital markets. The company traces its origins to the early 20th century when financial analyst John Moody began publishing credit information; today Moody’s is headquartered in New York and serves a broad set of market participants including investors, issuers, financial institutions, corporations, governments and regulators.

Moody’s operates primarily through two complementary businesses.