Moody’s (NYSE:MCO) Stock Price Target Lowered at Stifel Nicolaus

Moody’s (NYSE:MCO) had its price target decreased by analysts at Stifel Nicolaus from $550.00 to $537.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage presently has a “buy” rating on the business services provider’s stock. Stifel Nicolaus’ price objective suggests a potential upside of 11.78% from the stock’s previous close.

A number of other analysts have also recently issued reports on MCO. Jefferies Financial Group cut shares of Moody’s to a “neutral” rating and set a $560.00 price objective for the company. in a research note on Friday, October 16th. Wells Fargo & Company restated an “overweight” rating and set a $595.00 target price on shares of Moody’s in a research note on Thursday. JPMorgan Chase & Co. dropped their target price on shares of Moody’s from $570.00 to $555.00 and set an “overweight” rating for the company in a report on Wednesday, October 14th. Robert W. Baird upped their target price on shares of Moody’s from $557.00 to $572.00 and gave the stock an “outperform” rating in a report on Thursday, July 23rd. Finally, Deutsche Bank Aktiengesellschaft increased their price target on Moody’s from $587.00 to $594.00 and gave the stock a “buy” rating in a research note on Thursday, July 23rd. Thirteen investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $550.47.

Moody’s Trading Up 1.1%

Moody’s stock opened at $480.40 on Thursday. The firm has a 50 day moving average of $478.05 and a 200 day moving average of $467.75. The firm has a market capitalization of $83.20 billion, a price-to-earnings ratio of 30.46, a P/E/G ratio of 2.45 and a beta of 1.35. Moody’s has a 12-month low of $402.28 and a 12-month high of $546.88. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 2.01.

Moody’s (NYSE:MCO) last released its earnings results on Wednesday, October 21st. The business services provider reported $4.14 EPS for the quarter, missing analysts’ consensus estimates of $4.25 by ($0.11). Moody’s had a return on equity of 80.35% and a net margin of 34.25%. The firm had revenue of $2.02 billion for the quarter, compared to the consensus estimate of $2.08 billion. During the same quarter in the previous year, the business posted $3.92 EPS. Moody’s’s revenue was up .8% on a year-over-year basis. As a group, research analysts predict that Moody’s will post 16.92 earnings per share for the current year.

Insiders Place Their Bets

In other Moody’s news, CEO Robert Fauber sold 1,467 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $484.30, for a total value of $710,468.10. Following the completion of the transaction, the chief executive officer directly owned 51,964 shares in the company, valued at $25,166,165.20. This represents a 2.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.14% of the stock is owned by insiders.

Institutional Investors Weigh In On Moody’s

Several institutional investors and hedge funds have recently modified their holdings of MCO. Bank of New York Mellon Corp purchased a new position in shares of Moody’s in the second quarter worth $914,721,000. Principal Financial Group Inc. boosted its position in shares of Moody’s by 72.5% during the first quarter. Principal Financial Group Inc. now owns 1,081,807 shares of the business services provider’s stock worth $471,963,000 after acquiring an additional 454,684 shares during the last quarter. Lazard Asset Management LLC grew its stake in Moody’s by 5,102.9% during the first quarter. Lazard Asset Management LLC now owns 286,213 shares of the business services provider’s stock valued at $124,860,000 after acquiring an additional 280,712 shares in the last quarter. Royal London Asset Management Ltd. grew its stake in Moody’s by 275.2% during the second quarter. Royal London Asset Management Ltd. now owns 319,889 shares of the business services provider’s stock valued at $144,884,000 after acquiring an additional 234,640 shares in the last quarter. Finally, Junto Capital Management LP grew its stake in Moody’s by 195.1% during the second quarter. Junto Capital Management LP now owns 260,298 shares of the business services provider’s stock valued at $117,894,000 after acquiring an additional 172,077 shares in the last quarter. Institutional investors own 92.11% of the company’s stock.

Key Headlines Impacting Moody’s

Here are the key news stories impacting Moody’s this week:

• Positive Sentiment: AI infrastructure issuance increased fourfold year over year in the third quarter, and refinancing needs across the U.S. and Europe, the Middle East and Africa exceed $5 trillion. These trends could support future debt-rating and data-services demand. Moody’s: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Moody’s declared a quarterly dividend of $1.03 per share, or $4.12 annualized, payable December 11 to shareholders of record November 20. The dividend yield is approximately 0.9%, providing a modest shareholder-return benefit.
• Positive Sentiment: Third-quarter adjusted earnings rose to $4.14 per share from $3.92 a year earlier, while demand for analytics remained steady. The company also maintains strong profitability, including a reported 34.25% net margin and 80.35% return on equity. MCO Q3 Earnings Miss Estimates as Costs Rise & MIS Revenues Fall
• Neutral Sentiment: Moody’s Ratings raised OYO parent PRISM’s outlook to positive, citing expected EBITDA growth. The development may support Moody’s credit-rating activity, but its direct effect on MCO is likely limited. OYO-parent PRISM IPO Article
• Negative Sentiment: Third-quarter adjusted EPS of $4.14 missed the $4.25 consensus estimate, and revenue of $2.02 billion fell short of the $2.08 billion forecast. Revenue increased only 0.8% year over year, while rising costs and weaker MIS revenue added to concerns about near-term growth. Moody’s Misses Q3 Earnings and Revenue Estimates
• Negative Sentiment: One valuation analysis argues that MCO’s exceptional business quality is already reflected in its approximately 30-times P/E ratio, making the stock vulnerable to further weakness if growth does not accelerate. Moody’s Valuation Analysis

Moody’s Company Profile

Moody’s Corporation (NYSE:MCO) is a global provider of credit ratings, research, data, analytics and risk-management solutions. Through Moody’s Investors Service, the company assigns credit ratings and publishes research on corporate, government and structured-finance debt issuers, helping investors and other market participants evaluate credit risk.

Through Moody’s Analytics, the company provides financial intelligence, economic research, data, software and advisory services. Its offerings support credit analysis, lending, portfolio management, enterprise risk management, compliance and related functions across financial institutions, corporations, governments and other organizations.

Moody’s traces its origins to 1909, when John Moody established the company that introduced published credit ratings for bonds.