Moody’s Corporation (MCO) Raised to “Buy” at Zacks Investment Research
Moody’s Corporation (NYSE:MCO) was upgraded by Zacks Investment Research from a “sell” rating to a “buy” rating in a research report issued on Monday. The brokerage currently has a $140.00 target price on the business services provider’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 11.91% from the company’s previous close.
According to Zacks, “Shares of Moody’s have outperformed the Zacks categorized Miscellaneous Financial Services industry, in the last three months. Also, earnings estimates have been going up ahead of its second quarter results. The company remains well positioned for growth on the back of its dominant position in the credit rating industry, diverse revenue base and disintermediation of credit markets. While stricter regulatory landscapes, mounting expenses, stiff competition across the credit rating industry and litigations issues remain major near-term concerns, the company's inorganic growth strategy and resultant synergies should lead to enhanced profitability and exposure to newer avenues for top line growth.”
Several other analysts also recently commented on MCO. BMO Capital Markets raised their price objective on shares of Moody’s Corporation from $124.00 to $127.00 and gave the company a “market perform” rating in a research report on Friday. BidaskClub upgraded shares of Moody’s Corporation from a “buy” rating to a “strong-buy” rating in a report on Friday, June 30th. Barclays PLC lifted their price target on shares of Moody’s Corporation from $118.00 to $128.00 and gave the company an “equal weight” rating in a report on Wednesday, June 28th. Morgan Stanley lifted their price target on shares of Moody’s Corporation from $118.00 to $121.00 and gave the company an “equal weight” rating in a report on Monday, May 8th. Finally, Cantor Fitzgerald reiterated a “hold” rating and issued a $116.00 price target on shares of Moody’s Corporation in a report on Monday, May 8th. Six research analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average price target of $118.63.
Shares of Moody’s Corporation (MCO) traded down 0.11% during midday trading on Monday, reaching $124.96. 163,871 shares of the company’s stock were exchanged. Moody’s Corporation has a one year low of $93.51 and a one year high of $125.59. The stock has a market cap of $23.91 billion, a price-to-earnings ratio of 56.85 and a beta of 1.29. The firm has a 50 day moving average of $117.94 and a 200-day moving average of $110.49.
Moody’s Corporation (NYSE:MCO) last announced its quarterly earnings data on Friday, May 5th. The business services provider reported $1.47 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.24 by $0.23. The firm had revenue of $975.20 million for the quarter, compared to the consensus estimate of $914.27 million. Moody’s Corporation had a net margin of 11.37% and a negative return on equity of 167.79%. The company’s revenue was up 19.5% on a year-over-year basis. During the same period last year, the firm earned $0.93 EPS. On average, equities research analysts anticipate that Moody’s Corporation will post $5.33 earnings per share for the current year.
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In other Moody’s Corporation news, SVP Blair Worrall sold 11,384 shares of the company’s stock in a transaction that occurred on Friday, May 19th. The shares were sold at an average price of $114.76, for a total transaction of $1,306,427.84. Following the transaction, the senior vice president now owns 19,359 shares in the company, valued at approximately $2,221,638.84. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Raymond W. Mcdaniel sold 61,667 shares of the company’s stock in a transaction that occurred on Wednesday, May 17th. The shares were sold at an average price of $113.35, for a total transaction of $6,989,954.45. Following the transaction, the insider now owns 308,761 shares in the company, valued at approximately $34,998,059.35. The disclosure for this sale can be found here. In the last 90 days, insiders sold 212,612 shares of company stock valued at $25,104,433. Company insiders own 1.17% of the company’s stock.
Hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. increased its stake in Moody’s Corporation by 2,616.3% in the first quarter. BlackRock Inc. now owns 10,181,036 shares of the business services provider’s stock valued at $1,140,681,000 after buying an additional 9,806,220 shares during the period. Harris Associates L P purchased a new stake in shares of Moody’s Corporation during the first quarter worth about $378,890,000. Akre Capital Management LLC increased its stake in shares of Moody’s Corporation by 21.9% in the first quarter. Akre Capital Management LLC now owns 5,679,831 shares of the business services provider’s stock worth $636,368,000 after buying an additional 1,019,167 shares during the period. Vanguard Group Inc. increased its stake in shares of Moody’s Corporation by 3.2% in the first quarter. Vanguard Group Inc. now owns 15,739,681 shares of the business services provider’s stock worth $1,763,474,000 after buying an additional 490,573 shares during the period. Finally, APG Asset Management N.V. increased its stake in shares of Moody’s Corporation by 26.3% in the first quarter. APG Asset Management N.V. now owns 1,772,538 shares of the business services provider’s stock worth $198,595,000 after buying an additional 368,801 shares during the period. 88.62% of the stock is currently owned by institutional investors and hedge funds.
About Moody’s Corporation
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 research and analytical services to financial institution customers.
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