Moody’s Corporation (MCO) Cut to Hold at Zacks Investment Research
Moody’s Corporation (NYSE:MCO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday.
According to Zacks, “Shares of Moody’s have significantly outperformed the industry year to date. The company’s second-quarter 2017 earnings easily surpassed the Zacks Consensus Estimate. Results reflected strong revenue growth, partially offset by a rise in expenses. The company remains well positioned to improve profitability on the back of its dominant position in the credit rating industry, diverse revenue base and disintermediation of credit markets. Also, the company's inorganic growth strategy and resultant synergies should further support top-line growth going forward. However, stricter regulatory landscapes and stiff competition across the credit rating industry continue to be major near term concerns. Further, mounting expenses are expected to hurt the company’s bottom-line growth.”
Several other equities analysts have also issued reports on MCO. BMO Capital Markets restated a “hold” rating and set a $124.00 price target on shares of Moody’s Corporation in a research report on Wednesday, April 26th. Barclays PLC reiterated a “hold” rating and issued a $118.00 price objective on shares of Moody’s Corporation in a report on Thursday, April 27th. Morgan Stanley increased their price objective on Moody’s Corporation from $117.00 to $118.00 and gave the stock an “equal weight” rating in a report on Friday, April 28th. Cantor Fitzgerald reiterated a “hold” rating and issued a $116.00 price objective on shares of Moody’s Corporation in a report on Monday, May 8th. Finally, BidaskClub cut Moody’s Corporation from a “strong-buy” rating to a “buy” rating in a report on Thursday, June 22nd. Seven equities research analysts have rated the stock with a hold rating, one has given a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $127.13.
Moody’s Corporation (NYSE:MCO) traded down 0.0438% during trading on Wednesday, hitting $132.1421. The company had a trading volume of 243,000 shares. The stock has a market capitalization of $25.24 billion, a price-to-earnings ratio of 53.0904 and a beta of 1.29. Moody’s Corporation has a 1-year low of $93.51 and a 1-year high of $135.20. The company’s 50 day moving average price is $127.17 and its 200-day moving average price is $117.42.
Moody’s Corporation (NYSE:MCO) last posted its quarterly earnings results on Friday, July 21st. The business services provider reported $1.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.33 by $0.18. Moody’s Corporation had a negative return on equity of 167.31% and a net margin of 12.63%. The business had revenue of $1 billion for the quarter, compared to analyst estimates of $968.78 million. During the same period last year, the company earned $1.30 EPS. Moody’s Corporation’s revenue for the quarter was up 7.7% compared to the same quarter last year. On average, analysts expect that Moody’s Corporation will post $5.52 EPS for the current year.
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In related news, SVP Blair Worrall sold 11,384 shares of the firm’s stock in a transaction that occurred on Friday, May 19th. The stock was sold at an average price of $114.76, for a total transaction of $1,306,427.84. Following the completion of the transaction, the senior vice president now owns 19,359 shares of the company’s stock, valued at approximately $2,221,638.84. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Linda Huber sold 13,698 shares of the firm’s stock in a transaction that occurred on Wednesday, June 14th. The shares were sold at an average price of $119.50, for a total value of $1,636,911.00. Following the transaction, the vice president now directly owns 77,836 shares of the company’s stock, valued at approximately $9,301,402. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 196,161 shares of company stock valued at $23,948,699. 1.17% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Oppenheimer Asset Management Inc. bought a new position in Moody’s Corporation during the first quarter worth $101,000. TrimTabs Asset Management LLC raised its position in Moody’s Corporation by 89.6% in the first quarter. TrimTabs Asset Management LLC now owns 965 shares of the business services provider’s stock worth $108,000 after buying an additional 456 shares during the period. American Beacon Advisors Inc. bought a new position in Moody’s Corporation during the first quarter worth $108,000. State of Alaska Department of Revenue bought a new position in Moody’s Corporation during the first quarter worth $113,000. Finally, Advisory Services Network LLC bought a new position in Moody’s Corporation during the first quarter worth $137,000. 88.46% of the stock is owned by institutional investors.
Moody’s Corporation Company Profile
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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