Moody’s Target of Unusually High Options Trading (NYSE:MCO)

Moody’s Corporation (NYSE:MCO) saw some unusual options trading activity on Tuesday. Investors purchased 4,144 call options on the stock. This is an increase of approximately 544% compared to the average volume of 643 call options.

Insider Activity at Moody’s

In other news, CEO Robert Fauber sold 1,467 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $484.30, for a total transaction of $710,468.10. Following the completion of the transaction, the chief executive officer directly owned 51,964 shares of the company’s stock, valued at $25,166,165.20. This trade represents a 2.75% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.14% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. SkyView Investment Advisors LLC raised its holdings in shares of Moody’s by 73.7% in the 2nd quarter. SkyView Investment Advisors LLC now owns 1,800 shares of the business services provider’s stock worth $815,000 after purchasing an additional 764 shares during the period. Junto Capital Management LP increased its position in Moody’s by 195.1% during the 2nd quarter. Junto Capital Management LP now owns 260,298 shares of the business services provider’s stock worth $117,894,000 after purchasing an additional 172,077 shares in the last quarter. Sequoia Financial Advisors LLC increased its position in Moody’s by 11.0% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 6,044 shares of the business services provider’s stock worth $2,738,000 after purchasing an additional 601 shares in the last quarter. Van Hulzen Asset Management LLC raised its holdings in Moody’s by 46.8% in the second quarter. Van Hulzen Asset Management LLC now owns 1,461 shares of the business services provider’s stock valued at $662,000 after buying an additional 466 shares during the period. Finally, MCF Advisors LLC raised its holdings in Moody’s by 16.8% in the second quarter. MCF Advisors LLC now owns 10,092 shares of the business services provider’s stock valued at $4,571,000 after buying an additional 1,451 shares during the period. 92.11% of the stock is owned by hedge funds and other institutional investors.

Moody’s Stock Performance

Moody’s stock opened at $465.34 on Thursday. The stock has a fifty day moving average price of $489.24 and a 200 day moving average price of $464.29. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 2.01. Moody’s has a 52 week low of $402.28 and a 52 week high of $546.88. The firm has a market capitalization of $80.60 billion, a P/E ratio of 29.51, a PEG ratio of 2.43 and a beta of 1.34.

Moody’s (NYSE:MCO) last posted its quarterly earnings data on Wednesday, July 22nd. The business services provider reported $4.68 EPS for the quarter, beating analysts’ consensus estimates of $4.26 by $0.42. The company had revenue of $2.19 billion during the quarter, compared to the consensus estimate of $2.09 billion. Moody’s had a net margin of 34.25% and a return on equity of 80.35%. The company’s quarterly revenue was up 15.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $3.56 EPS. Moody’s has set its FY 2026 guidance at 16.500-17.000 EPS. Equities research analysts anticipate that Moody’s will post 16.98 earnings per share for the current year.

Moody’s Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, September 4th. Shareholders of record on Friday, August 14th were paid a dividend of $1.03 per share. The ex-dividend date of this dividend was Friday, August 14th. This represents a $4.12 dividend on an annualized basis and a yield of 0.9%. Moody’s’s dividend payout ratio (DPR) is currently 26.13%.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Rothschild & Co Redburn set a $500.00 price target on Moody’s in a research report on Thursday, June 18th. Barclays lifted their price objective on Moody’s from $550.00 to $575.00 and gave the stock an “overweight” rating in a research report on Friday, July 10th. UBS Group restated a “neutral” rating and issued a $505.00 target price on shares of Moody’s in a report on Thursday, July 23rd. Wells Fargo & Company lifted their price target on shares of Moody’s from $590.00 to $597.00 and gave the stock an “overweight” rating in a report on Thursday, July 23rd. Finally, Robert W. Baird boosted their price objective on shares of Moody’s from $557.00 to $572.00 and gave the company an “outperform” rating in a research report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $553.61.

Moody’s News Roundup

Here are the key news stories impacting Moody’s this week:

• Positive Sentiment: Moody’s agreed to acquire a minority stake in PhilRatings, expanding its local debt-market capabilities and strengthening its affiliate network in the Asia-Pacific region. The investment could support long-term growth in credit ratings, research and data services as Philippine capital markets develop. Can MCO’s PhilRatings Investment Bolster Its Asia-Pacific Presence?
• Positive Sentiment: Analysts highlighted Moody’s among the stronger financial-exchange and data businesses in the second quarter, reinforcing the company’s favorable operating momentum. Recent results showed revenue growth and earnings above consensus, supporting the broader investment case. Spotting Winners: Moody’s and Financial Exchanges & Data Stocks in Q2
• Neutral Sentiment: Unusually heavy call-option activity, with 4,144 calls purchased versus an average of 643, signals increased speculative interest in MCO. However, options activity does not necessarily indicate sustained institutional buying or a change in fundamentals.
• Neutral Sentiment: Moody’s London head-office building was reportedly put up for sale for approximately $444.6 million. A sale could unlock cash or improve capital efficiency, but the effect on earnings and valuation is unclear. Moody’s London Head Office Building Up for Sale
• Negative Sentiment: Commentary questioning whether Moody’s is fully valued suggests investors may see limited upside after the stock’s strong performance. With shares trading above their 200-day average and at a forward earnings multiple near 29.5 times based on the provided metrics, the PhilRatings deal may be viewed as strategically positive but too small to materially change near-term earnings expectations. Moody’s Expands in the Philippines: Is the Stock Fully Valued?

Moody’s Company Profile

Moody’s Corporation (NYSE:MCO) is a global provider of credit ratings, research, data and analytical tools. Through Moody’s Ratings, the company evaluates the creditworthiness of governments, companies, financial institutions and debt securities, helping investors and other market participants assess credit risk. Its ratings and related research cover a broad range of fixed-income markets and structured finance products.

Through Moody’s Analytics, the company provides economic and financial intelligence, risk-management software, data, quantitative models and advisory services.