Sterling Investment Management LLC Sells 3,189 Shares of Moody's Corporation $MCO

Key Points

• Sterling Investment Management reduced its Moody’s stake by 20.3% in the third quarter, selling 3,189 shares and retaining 12,556 shares valued at approximately $5.7 million. Institutional investors collectively own 92.11% of Moody’s stock.
• Analyst sentiment remains broadly positive, with 13 Buy ratings and seven Holds producing a “Moderate Buy” consensus and an average price target of $551.26, despite several recent target reductions.
• Moody’s reported strong quarterly results, with EPS of $4.68 and revenue of $2.19 billion, up 15.1% year over year. The company also pays a quarterly dividend of $1.03, equal to a 0.8% annualized yield.

Sterling Investment Management LLC lessened its holdings in shares of Moody's Corporation (NYSE:MCO - Free Report) by 20.3% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 12,556 shares of the business services provider's stock after selling 3,189 shares during the quarter. Moody's comprises approximately 2.7% of Sterling Investment Management LLC's portfolio, making the stock its 13th biggest holding. Sterling Investment Management LLC's holdings in Moody's were worth $5,702,000 at the end of the most recent quarter.

Other large investors have also recently modified their holdings of the company. Kintegral Advisory LLC lifted its stake in shares of Moody's by 0.6% during the 3rd quarter. Kintegral Advisory LLC now owns 14,706 shares of the business services provider's stock valued at $6,678,000 after buying an additional 83 shares in the last quarter. Cyndeo Wealth Partners LLC boosted its holdings in Moody's by 3.1% in the 3rd quarter. Cyndeo Wealth Partners LLC now owns 1,265 shares of the business services provider's stock worth $575,000 after buying an additional 38 shares during the period. Hanson & Doremus Investment Management bought a new position in Moody's in the 3rd quarter worth approximately $200,000. Goelzer Investment Management Inc. boosted its holdings in Moody's by 1.2% in the 3rd quarter. Goelzer Investment Management Inc. now owns 1,949 shares of the business services provider's stock worth $885,000 after buying an additional 23 shares during the period. Finally, V Square Quantitative Management LLC grew its stake in Moody's by 4.4% in the 3rd quarter. V Square Quantitative Management LLC now owns 3,970 shares of the business services provider's stock valued at $1,803,000 after buying an additional 168 shares in the last quarter. Hedge funds and other institutional investors own 92.11% of the company's stock.

Wall Street Analyst Weigh In

MCO has been the subject of a number of analyst reports. Barclays raised their price target on Moody's from $550.00 to $575.00 and gave the stock an "overweight" rating in a report on Friday, July 10th. Jefferies Financial Group lowered Moody's to a "neutral" rating and set a $560.00 price objective on the stock. in a research note on Friday. The Goldman Sachs Group boosted their price objective on Moody's from $557.00 to $593.00 and gave the company a "buy" rating in a research note on Thursday, July 23rd. Rothschild & Co Redburn increased their price objective on Moody's from $510.00 to $520.00 and gave the stock a "neutral" rating in a report on Thursday, July 23rd. Finally, JPMorgan Chase & Co. cut their target price on Moody's from $570.00 to $555.00 and set an "overweight" rating for the company in a research note on Wednesday. Thirteen investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, Moody's presently has a consensus rating of "Moderate Buy" and an average target price of $551.26.

Moody's News Summary

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

• Positive Sentiment: Royal Bank of Canada lowered its price target to $575 from $610 but maintained an “outperform” rating. The revised target still implies substantial upside from Moody’s recent trading level, signaling that RBC views the pullback in expectations as a valuation adjustment rather than a change in the company’s long-term outlook. Benzinga analyst ratings report
• Positive Sentiment: Wall Street is preparing for Moody’s third-quarter earnings report on October 21, with consensus calling for approximately $4.25 in earnings per share. Investors are focused on whether continued demand for credit ratings, research and risk-management products can sustain the company’s recent double-digit revenue growth and strong profitability. Moody’s Q3 2026 earnings preview
• Neutral Sentiment: Pre-earnings coverage is highlighting estimates for revenue, operating margins and other key metrics beyond headline EPS. These previews could increase volatility around the October 21 report, particularly if Moody’s delivers strong earnings but offers cautious guidance. Zacks Moody’s Q3 estimates
• Negative Sentiment: Jefferies reduced its Moody’s price target to $560 from $610. The cut may weigh on sentiment because it reflects more limited upside following the stock’s recent advance, although the new target remains above the current share price. Jefferies Moody’s price-target update
• Negative Sentiment: Additional commentary from BMO Capital Markets and other analysts has emphasized a more cautious valuation outlook, reinforcing concerns that expectations and the stock’s premium valuation leave less room for an earnings disappointment. BMO Moody’s forecast

Moody's Trading Up 0.2%

Shares of MCO opened at $484.71 on Friday. The company has a debt-to-equity ratio of 2.01, a current ratio of 1.19 and a quick ratio of 1.19. Moody's Corporation has a 1-year low of $402.28 and a 1-year high of $546.88. The company has a market capitalization of $83.95 billion, a P/E ratio of 30.74, a P/E/G ratio of 2.49 and a beta of 1.35. The firm's 50 day simple moving average is $477.91 and its 200 day simple moving average is $466.64.

Moody's (NYSE:MCO - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The business services provider reported $4.68 EPS for the quarter, topping analysts' consensus estimates of $4.26 by $0.42. Moody's had a net margin of 34.25% and a return on equity of 80.35%. The firm had revenue of $2.19 billion for the quarter, compared to analyst estimates of $2.09 billion. During the same quarter in the prior year, the firm earned $3.56 EPS. The business's revenue for the quarter was up 15.1% compared to the same quarter last year. Moody's has set its FY 2026 guidance at 16.500-17.000 EPS. Sell-side analysts forecast that Moody's Corporation will post 16.92 earnings per share for the current fiscal year.

Moody's Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 4th. Stockholders of record on Friday, August 14th were issued 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, August 14th. Moody's's dividend payout ratio is presently 26.13%.

Insider Activity

In other news, CEO Robert Fauber sold 1,467 shares of the stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $484.30, for a total transaction of $710,468.10. Following the transaction, the chief executive officer directly owned 51,964 shares in the company, valued at approximately $25,166,165.20. This represents a 2.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.14% of the company's stock.

Moody's Company Profile

Moody's Corporation NYSE: MCO is a global provider of credit ratings, research, data, analytics and risk-management solutions. Through Moody's Investors Service, the company assigns credit ratings and publishes research on corporate, government and structured-finance debt issuers, helping investors and other market participants evaluate credit risk.

Through Moody's Analytics, the company provides financial intelligence, economic research, data, software and advisory services. Its offerings support credit analysis, lending, portfolio management, enterprise risk management, compliance and related functions across financial institutions, corporations, governments and other organizations.

Moody's traces its origins to 1909, when John Moody established the company that introduced published credit ratings for bonds.

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.