Watershed Asset Management L.L.C. Takes Position in Moody’s Corporation $MCO

Watershed Asset Management L.L.C. purchased a new position in shares of Moody’s Corporation (NYSE:MCO) during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 7,000 shares of the business services provider’s stock, valued at approximately $3,054,000. Moody’s accounts for about 3.2% of Watershed Asset Management L.L.C.’s investment portfolio, making the stock its 5th biggest position.

Several other hedge funds have also made changes to their positions in the stock. Qsemble Capital Management LP increased its holdings in shares of Moody’s by 78.3% during the fourth quarter. Qsemble Capital Management LP now owns 5,703 shares of the business services provider’s stock valued at $2,913,000 after purchasing an additional 2,505 shares during the period. Norges Bank bought a new stake in shares of Moody’s during the fourth quarter valued at about $1,097,101,000. Assenagon Asset Management S.A. lifted its holdings in Moody’s by 28.3% in the fourth quarter. Assenagon Asset Management S.A. now owns 218,843 shares of the business services provider’s stock worth $111,796,000 after purchasing an additional 48,240 shares during the period. Swiss Life Asset Management Ltd grew its position in Moody’s by 14.7% in the 3rd quarter. Swiss Life Asset Management Ltd now owns 41,816 shares of the business services provider’s stock valued at $19,924,000 after buying an additional 5,362 shares in the last quarter. Finally, LBP AM SA grew its position in Moody’s by 5,179.4% in the 4th quarter. LBP AM SA now owns 38,751 shares of the business services provider’s stock valued at $19,796,000 after buying an additional 38,017 shares in the last quarter. Institutional investors own 92.11% of the company’s stock.

Insider Buying and Selling at Moody’s

In related news, CEO Robert Fauber sold 1,467 shares of Moody’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $453.67, for a total value of $665,533.89. Following the transaction, the chief executive officer owned 52,564 shares of the company’s stock, valued at approximately $23,846,709.88. This trade represents a 2.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Richard G. Steele sold 158 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $453.67, for a total transaction of $71,679.86. Following the completion of the transaction, the senior vice president owned 1,985 shares of the company’s stock, valued at approximately $900,534.95. The trade was a 7.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 3,250 shares of company stock valued at $1,495,098. 0.14% of the stock is currently owned by company insiders.

Moody’s Price Performance

Shares of Moody’s stock opened at $511.14 on Friday. Moody’s Corporation has a 52 week low of $402.28 and a 52 week high of $546.88. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 2.03. The stock has a market cap of $89.30 billion, a PE ratio of 36.64, a price-to-earnings-growth ratio of 2.66 and a beta of 1.34. The company’s 50-day moving average price is $460.53 and its two-hundred day moving average price is $465.69.

Moody’s (NYSE:MCO) last posted its quarterly earnings data on Wednesday, April 22nd. The business services provider reported $4.33 earnings per share for the quarter, beating the consensus estimate of $4.22 by $0.11. The company had revenue of $2.08 billion during the quarter, compared to analyst estimates of $2.11 billion. Moody’s had a net margin of 31.69% and a return on equity of 70.97%. The business’s revenue for the quarter was up 8.1% on a year-over-year basis. During the same quarter last year, the firm posted $3.83 EPS. Moody’s has set its FY 2026 guidance at 16.400-17.000 EPS. As a group, sell-side analysts anticipate that Moody’s Corporation will post 16.71 EPS for the current fiscal year.

Moody’s Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 15th were given a dividend of $1.03 per share. This represents a $4.12 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Friday, May 15th. Moody’s’s dividend payout ratio is 29.53%.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. Mizuho lowered their target price on shares of Moody’s from $524.00 to $521.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 28th. Barclays increased their price objective on shares of Moody’s from $550.00 to $575.00 and gave the company an “overweight” rating in a report on Friday, July 10th. Wells Fargo & Company raised their price objective on shares of Moody’s from $560.00 to $590.00 and gave the company an “overweight” rating in a research note on Thursday, April 23rd. BMO Capital Markets boosted their target price on Moody’s from $489.00 to $515.00 and gave the stock a “market perform” rating in a report on Tuesday, July 7th. Finally, Wolfe Research restated an “outperform” rating and issued a $535.00 target price on shares of Moody’s in a research report on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $548.47.

About Moody’s

Moody’s Corporation is a global provider of credit ratings, research, data and analytics that support financial decision-making and transparency in capital markets. The company traces its origins to the early 20th century when financial analyst John Moody began publishing credit information; today Moody’s is headquartered in New York and serves a broad set of market participants including investors, issuers, financial institutions, corporations, governments and regulators.

Moody’s operates primarily through two complementary businesses.