DNB Asset Management AS has bolstered its investment in Moody’s Corporation (NYSE:MCO) by 6.2% during the second quarter of 2023. According to its most recent Form 13F filing with the Securities and Exchange Commission (SEC), the fund acquired an additional 1,891 shares, bringing its total holdings to 32,310 shares, valued at approximately $16.2 million.
Several other hedge funds have also adjusted their positions in Moody’s recently. HSBC Holdings PLC increased its stake by 11.9% in the first quarter, now owning 527,518 shares worth about $244.8 million after acquiring an additional 56,273 shares. Similarly, Fiera Capital Corp grew its holdings by 1.4% in the second quarter, totaling 2,574,948 shares valued at $1.29 billion.
On a significant note, Banco Santander S.A. raised its position by 33.0%, owning 25,672 shares valued at $11.96 million. Mitsubishi UFJ Asset Management Co. Ltd. and Nordea Investment Management AB also increased their stakes, reflecting growing confidence in the firm. Hedge funds and institutional investors now collectively own 92.11% of Moody’s stock.
Analyst Ratings and Insider Transactions
Analysts have been vocal in their assessments of Moody’s stock. In a report dated October 1, Seaport Res Ptn upgraded Moody’s to a “strong-buy” rating. Meanwhile, Deutsche Bank Aktiengesellschaft set a target price of $528.00 with a “buy” rating. However, not all reviews have been positive; Wall Street Zen downgraded the stock from “buy” to “hold” on November 8.
Various analysts have rated Moody’s stock, with one assigning a “strong buy,” twelve giving it a “buy,” and six labeling it as “hold.” According to data from MarketBeat.com, the average rating for Moody’s is “Moderate Buy,” with a target price of approximately $543.07.
In related news, CEO Robert Fauber sold 1,167 shares on November 3 at an average price of $478.95, resulting in a transaction valued at around $558,934.65. Following this sale, Fauber owns 61,082 shares, valued at about $29.26 million. Over the past 90 days, insiders have sold a total of 2,569 shares worth approximately $1.25 million.
Moody’s Performance and Upcoming Dividend
Moody’s stock was up 1.1% on the latest trading session, opening at $479.91. The firm reported a market capitalization of $85.62 billion, with a price-to-earnings (P/E) ratio of 38.58 and a beta of 1.40. The company has experienced a 1-year low of $378.71 and a 1-year high of $531.93.
On October 22, Moody’s announced its quarterly earnings, reporting earnings per share (EPS) of $3.92, surpassing analysts’ expectations of $3.70 by $0.22. The firm achieved a net margin of 29.92% and a return on equity of 63.58%, with revenues reaching $2.01 billion for the quarter, up 10.7% year-over-year.
Looking ahead, Moody’s has set its fiscal year 2025 guidance at an EPS range of $14.500-$14.750. Analysts forecast the company will post an EPS of $13.95 for the current year.
Furthermore, Moody’s recently declared a quarterly dividend of $0.94, payable on December 12. Shareholders of record on November 21 will receive this dividend, which translates to an annual yield of 0.8% based on a total annualized payout of $3.76. Presently, the company’s dividend payout ratio stands at 30.23%.
Moody’s operates as an integrated risk assessment firm, with two primary segments: Moody’s Analytics and Moody’s Investors Services. The Analytics segment offers various products and services that aid institutional participants in managing risks within financial markets.
