Kestra Advisory Services LLC Reduces Position in Moody's Corporation $MCO

Key Points

• Kestra Advisory Services cut its Moody’s stake by 6.2% in the first quarter, leaving it with 40,054 shares worth about $17.5 million.
• Moody’s reported Q1 earnings of $4.33 per share, beating estimates, while revenue rose 8.1% year over year to $2.08 billion, and the company reiterated FY 2026 EPS guidance of $16.40-$17.00.
• The stock traded around $487.17, and analysts remain broadly positive with a consensus Moderate Buy rating and average price target of $545.06.

Kestra Advisory Services LLC trimmed its holdings in Moody's Corporation (NYSE:MCO - Free Report) by 6.2% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 40,054 shares of the business services provider's stock after selling 2,664 shares during the period. Kestra Advisory Services LLC's holdings in Moody's were worth $17,473,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Norges Bank acquired a new stake in Moody's in the 4th quarter valued at about $1,097,101,000. Egerton Capital UK LLP purchased a new position in Moody's in the 4th quarter worth approximately $395,096,000. Price T Rowe Associates Inc. MD boosted its holdings in shares of Moody's by 73.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,716,304 shares of the business services provider's stock worth $876,775,000 after purchasing an additional 726,971 shares during the last quarter. Auto Owners Insurance Co boosted its holdings in shares of Moody's by 50,985.1% during the 4th quarter. Auto Owners Insurance Co now owns 420,430 shares of the business services provider's stock worth $214,777,000 after purchasing an additional 419,607 shares during the last quarter. Finally, First Trust Advisors LP grew its position in shares of Moody's by 315.6% in the fourth quarter. First Trust Advisors LP now owns 417,782 shares of the business services provider's stock valued at $213,424,000 after purchasing an additional 317,245 shares in the last quarter. 92.11% of the stock is owned by hedge funds and other institutional investors.

Moody's Trading Up 0.0%

Shares of MCO stock traded up $0.15 during trading on Friday, hitting $487.17. 510,730 shares of the stock traded hands, compared to its average volume of 996,152. The firm has a market capitalization of $85.11 billion, a P/E ratio of 34.92, a price-to-earnings-growth ratio of 2.62 and a beta of 1.34. The company has a debt-to-equity ratio of 2.03, a current ratio of 1.16 and a quick ratio of 1.16. The firm's fifty day moving average price is $455.50 and its 200-day moving average price is $466.07. Moody's Corporation has a 52-week low of $402.28 and a 52-week high of $546.88.

Moody's (NYSE:MCO - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The business services provider reported $4.33 earnings per share for the quarter, topping 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 return on equity of 70.97% and a net margin of 31.69%.The firm's revenue for the quarter was up 8.1% compared to the same quarter last year. During the same period in the prior year, the business posted $3.83 earnings per share. Moody's has set its FY 2026 guidance at 16.400-17.000 EPS. As a group, research analysts forecast that Moody's Corporation will post 16.71 earnings per share for the current fiscal year.

Moody's Announces Dividend

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

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on MCO shares. Wall Street Zen cut Moody's from a "buy" rating to a "hold" rating in a report on Saturday, March 21st. Bank of America reissued a "buy" rating and set a $565.00 price objective on shares of Moody's in a research note on Wednesday, April 22nd. Mizuho cut their target price on Moody's from $524.00 to $521.00 and set a "neutral" rating for the company in a research note on Tuesday, April 28th. Wolfe Research reaffirmed an "outperform" rating and issued a $535.00 target price on shares of Moody's in a research note on Thursday, April 23rd. Finally, Morgan Stanley lifted their price target on Moody's from $491.00 to $496.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $545.06.

Insider Transactions at Moody's

In related news, 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 sale, the senior vice president directly owned 1,985 shares of the company's stock, valued at approximately $900,534.95. This trade represents a 7.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Robert Fauber sold 1,467 shares of the business's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $453.67, for a total transaction of $665,533.89. Following the completion of the sale, the chief executive officer owned 52,564 shares in the company, valued at approximately $23,846,709.88. This trade represents a 2.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 3,250 shares of company stock valued at $1,495,098 over the last three months. Corporate insiders own 0.14% of the company's stock.

Moody's Profile

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.

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