Moody's Corporation $MCO Shares Sold by Bank of Nova Scotia

Key Points

• Bank of Nova Scotia cut its Moody’s stake by 8.1% in the first quarter, selling 7,189 shares and ending with 81,270 shares valued at about $35.5 million.
• Moody’s reported better-than-expected Q2 earnings, with EPS of $4.68 and revenue of $2.19 billion, and raised its FY2026 guidance to 16.5–17.0 EPS.
• Analysts remain generally constructive, with a Moderate Buy consensus and an average price target of $553.11, though some commentary notes the stock may be looking expensive after the earnings beat.

Bank of Nova Scotia reduced its position in Moody's Corporation (NYSE:MCO - Free Report) by 8.1% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 81,270 shares of the business services provider's stock after selling 7,189 shares during the quarter. Bank of Nova Scotia's holdings in Moody's were worth $35,456,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Sivia Capital Partners LLC purchased a new stake in Moody's in the second quarter valued at about $267,000. Federated Hermes Inc. raised its position in shares of Moody's by 15.5% in the 2nd quarter. Federated Hermes Inc. now owns 10,916 shares of the business services provider's stock valued at $5,475,000 after purchasing an additional 1,461 shares during the last quarter. NewEdge Advisors LLC raised its position in shares of Moody's by 6.2% in the 2nd quarter. NewEdge Advisors LLC now owns 1,468 shares of the business services provider's stock valued at $736,000 after purchasing an additional 86 shares during the last quarter. CIBC Asset Management Inc boosted its stake in Moody's by 3.8% in the 2nd quarter. CIBC Asset Management Inc now owns 25,303 shares of the business services provider's stock worth $12,692,000 after purchasing an additional 929 shares in the last quarter. Finally, Treasurer of the State of North Carolina grew its position in Moody's by 0.4% during the 2nd quarter. Treasurer of the State of North Carolina now owns 72,615 shares of the business services provider's stock worth $36,423,000 after purchasing an additional 280 shares during the last quarter. Hedge funds and other institutional investors own 92.11% of the company's stock.

Analyst Ratings Changes

MCO has been the topic of a number of recent analyst reports. Wolfe Research restated an "outperform" rating and set a $535.00 price target on shares of Moody's in a research note on Thursday, April 23rd. JPMorgan Chase & Co. boosted their price objective on shares of Moody's from $530.00 to $600.00 and gave the company an "overweight" rating in a report on Monday, July 20th. UBS Group reissued a "neutral" rating and issued a $505.00 target price on shares of Moody's in a research report on Thursday. BMO Capital Markets raised their target price on Moody's from $489.00 to $515.00 and gave the stock a "market perform" rating in a research note on Tuesday, July 7th. Finally, Bank of America reiterated a "buy" rating and set a $565.00 price target on shares of Moody's in a research note on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $553.11.

Key Headlines Impacting Moody's

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

• Positive Sentiment: Moody’s latest quarterly report topped expectations, with strong revenue growth and raised guidance helping reinforce the company’s earnings momentum. Moodys Corp (MCO) Q2 2026 Earnings Call Highlights: Strong Revenue Growth and Raised Guidance
• Positive Sentiment: Clear Street reiterated its Buy rating on Moody’s, adding to the view that the company’s business remains fundamentally sound after earnings. Clear Street Sticks to Their Buy Rating for Moody’s (MCO)
• Positive Sentiment: Multiple commentary pieces highlighted Moody’s strong Q2 performance and reaffirmed bullish views, citing solid fundamentals and continued earnings strength. Moody's Corporation: Strong Q2, I Reiterate My Buy Rating As Fundamentals Are Still Sound
• Neutral Sentiment: Moody’s also released its quarterly dividend announcement, which is supportive for income investors but not likely a major near-term stock catalyst. Moody's Corporation dividend announcement
• Neutral Sentiment: Several articles focused on valuation, noting that Moody’s may look expensive relative to fair value despite the earnings beat, which could temper upside. Moody's (MCO) Stock Looks Expensive Relative To Fair Value
• Negative Sentiment: Investor attention is also on broader concerns about valuation after the earnings beat, with some coverage suggesting the stock’s premium pricing may limit further gains. Moody's (MCO) Earnings Beat Puts Valuation Back In Focus

Insiders Place Their Bets

In other news, CEO Robert Fauber sold 1,467 shares of the company's stock in a transaction on 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 of the company's stock, valued at $23,846,709.88. This represents a 2.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available 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 directly owned 1,985 shares in the company, valued at approximately $900,534.95. This represents 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. Insiders have sold 3,250 shares of company stock valued at $1,495,098 in the last ninety days. Insiders own 0.14% of the company's stock.

Moody's Price Performance

Shares of Moody's stock opened at $471.30 on Friday. The stock has a market capitalization of $82.34 billion, a P/E ratio of 29.89, a PEG ratio of 2.41 and a beta of 1.34. The business has a 50 day simple moving average of $465.04 and a two-hundred day simple moving average of $464.80. Moody's Corporation has a 12 month low of $402.28 and a 12 month high of $546.88. The company has a debt-to-equity ratio of 2.01, a current ratio of 1.19 and a quick ratio of 1.16.

Moody's (NYSE:MCO - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The business services provider reported $4.68 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.26 by $0.42. Moody's had a return on equity of 80.35% and a net margin of 34.25%.The firm had revenue of $2.19 billion for the quarter, compared to analyst estimates of $2.09 billion. During the same period in the previous year, the company posted $3.56 earnings per share. The business's revenue was up 15.1% on a year-over-year basis. Moody's has set its FY 2026 guidance at 16.500-17.000 EPS. As a group, analysts predict that Moody's Corporation will post 16.8 EPS for the current fiscal year.

Moody's Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 14th will be paid a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Friday, August 14th. Moody's's payout ratio is 29.53%.

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.

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