Analysts at Wall Street Zen have upgraded Moody’s Corporation (NYSE: MCO) from a “hold” rating to a “buy” rating, according to a research note published on October 31, 2023. This shift reflects growing confidence in the company’s performance amid a dynamic market landscape.
Analyst Ratings and Price Targets Shift
In recent weeks, several research firms have provided insights on Moody’s stock. Weiss Ratings reaffirmed a “buy (b)” rating on the shares in a report issued on the same day as Wall Street Zen’s upgrade. Meanwhile, UBS Group adjusted its price target for Moody’s from $515.00 to $490.00, maintaining a “neutral” rating. On January 14, 2024, Wells Fargo & Company raised its price target from $620.00 to $660.00, assigning an “overweight” rating.
Additionally, The Goldman Sachs Group set a price objective of $531.00, while Bank of America initiated coverage on February 17, 2024, issuing a “buy” rating with a price target of $550.00. Among analysts, one has rated the stock as a Strong Buy, twelve assigned a Buy rating, and five maintained a Hold rating. Data from MarketBeat.com indicates a consensus rating of “Moderate Buy” with a consensus target price of $553.75.
Recent Earnings and Insider Activity
Moody’s recently reported its earnings results on February 18, 2024, revealing an earnings per share (EPS) of $3.64, surpassing the consensus estimate of $3.39 by $0.25. The company achieved a return on equity of 66.01% and a net margin of 31.86%. Revenue for the quarter reached $1.89 billion, exceeding analysts’ expectations of $1.87 billion, and reflecting a year-over-year increase of 13.0%.
For the fiscal year 2026, Moody’s has guided for an EPS range of 16.400-17.000. Analysts forecast an EPS of $13.95 for the current fiscal year. In a related transaction, CEO Robert Fauber sold 575 shares of company stock on February 3, 2024, at an average price of $498.90, totaling approximately $286,867.50. Following this sale, Fauber’s holdings amount to 61,082 shares, valued at around $30,473,809.80, marking a 0.93% decrease in his position. This trade was disclosed in a filing with the U.S. Securities and Exchange Commission.
Currently, insiders hold 0.14% of Moody’s stock, while institutional investors and hedge funds control a significant 92.11% of the company’s shares.
Institutional Ownership Changes
Recent activity among institutional investors indicates shifting dynamics for Moody’s. Rexford Capital Inc. acquired a new position in the company during the second quarter, valued at approximately $25,000. Similarly, Newbridge Financial Services Group Inc. and Birchwood Financial Partners Inc. each purchased new stakes during the same period, estimated at around $25,000 and $26,000, respectively. Other notable acquisitions include Caitlin John LLC, which invested about $27,000, and Johnson Financial Group Inc., which contributed approximately $28,000 in the second quarter.
As Moody’s positions itself for future growth, the market will be closely observing its performance, particularly in light of its recent upgrades and positive earnings results. The company continues to play a crucial role in providing credit ratings, research, and analytics that support financial decision-making globally.
