Principal Financial Group Inc. Has $471.96 Million Stock Holdings in Moody's Corporation $MCO

Key Points

• Principal Financial Group boosted its Moody’s stake by 72.5% in Q1, ending with 1,081,807 shares valued at about $471.96 million, or roughly 0.62% of the company.
• Moody’s reported better-than-expected earnings for the quarter, with EPS of $4.33 versus estimates of $4.22, and revenue up 8.1% year over year to $2.08 billion.
• Analysts remain generally positive on the stock, with a Moderate Buy consensus and an average price target of $545.06, while the company also paid a quarterly dividend of $1.03 per share.

Principal Financial Group Inc. raised its position in Moody's Corporation (NYSE:MCO - Free Report) by 72.5% during the first quarter, according to its most recent 13F filing with the SEC. The fund owned 1,081,807 shares of the business services provider's stock after buying an additional 454,684 shares during the period. Principal Financial Group Inc. owned about 0.62% of Moody's worth $471,963,000 as of its most recent filing with the SEC.

Several other hedge funds also recently modified their holdings of the business. Norges Bank acquired a new stake in shares of Moody's during the fourth quarter worth $1,097,101,000. Egerton Capital UK LLP acquired a new position in shares of Moody's in the 4th quarter valued at approximately $395,096,000. Price T Rowe Associates Inc. MD increased its stake in 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 in the last quarter. Auto Owners Insurance Co increased its stake in 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 in the last quarter. Finally, First Trust Advisors LP raised its stake in shares of Moody's by 315.6% in the 4th 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 during the period. Institutional investors own 92.11% of the company's stock.

Moody's Price Performance

MCO stock opened at $495.95 on Tuesday. The company's 50-day moving average is $456.18 and its 200-day moving average is $465.63. Moody's Corporation has a 1 year low of $402.28 and a 1 year high of $546.88. The stock has a market capitalization of $86.64 billion, a PE ratio of 35.55, a price-to-earnings-growth ratio of 2.54 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.

Moody's (NYSE:MCO - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The business services provider reported $4.33 EPS for the quarter, topping analysts' consensus estimates of $4.22 by $0.11. Moody's had a return on equity of 70.97% and a net margin of 31.69%.The business had revenue of $2.08 billion for the quarter, compared to analyst estimates of $2.11 billion. During the same period last year, the company posted $3.83 earnings per share. Moody's's quarterly revenue was up 8.1% compared to the same quarter last year. Moody's has set its FY 2026 guidance at 16.400-17.000 EPS. Equities research analysts expect that Moody's Corporation will post 16.71 EPS for the current fiscal year.

Moody's Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 15th were given a $1.03 dividend. 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 (DPR) is 29.53%.

Insider Activity at Moody's

In other news, SVP Richard G. Steele sold 158 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 value of $71,679.86. Following the completion of the sale, the senior vice president owned 1,985 shares of the company's stock, valued at approximately $900,534.95. This represents a 7.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Robert Fauber sold 1,467 shares of Moody's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $466.39, for a total transaction of $684,194.13. Following the completion of the transaction, the chief executive officer directly owned 75,189 shares in the company, valued at approximately $35,067,397.71. The trade was a 1.91% 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. In the last ninety days, insiders have sold 3,250 shares of company stock valued at $1,495,098. 0.14% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

MCO has been the subject of several recent research reports. BMO Capital Markets upped their price objective on Moody's from $489.00 to $515.00 and gave the stock a "market perform" rating in a research report on Tuesday, July 7th. Bank of America reissued a "buy" rating and set a $565.00 price target on shares of Moody's in a research report on Wednesday, April 22nd. Wells Fargo & Company raised their price objective on Moody's from $560.00 to $590.00 and gave the company an "overweight" rating in a report on Thursday, April 23rd. Weiss Ratings downgraded Moody's from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, April 27th. Finally, Rothschild & Co Redburn set a $500.00 price target on shares of Moody's in a research note on Thursday, June 18th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $545.06.

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.

Want to see what other hedge funds are holding MCO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Moody's Corporation (NYSE:MCO - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.