Moody's (NYSE:MCO) Shares Gap Down - Here's What Happened

Key Points

• Shares gapped down — Moody's opened at $416.29 after a prior close of $449.47 and was last trading around $424.98, about a 6% decline
• Analyst sentiment remains positive overall: the consensus rating is "Moderate Buy" with a consensus price target of $558.56, despite mixed individual revisions (e.g., Wells Fargo raised its target to $660 while JPMorgan cut to $560).
• Insider and ownership note: CEO Robert Fauber sold 575 shares at ~$498.90 (a 0.93% reduction in his position); insiders own just 0.14% of the stock while institutional investors hold ~92.1%.

Shares of Moody's Corporation (NYSE:MCO - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $449.47, but opened at $416.29. Moody's shares last traded at $424.9840, with a volume of 1,049,729 shares traded.

Analysts Set New Price Targets

A number of research firms recently commented on MCO. JPMorgan Chase & Co. lowered their price target on shares of Moody's from $580.00 to $560.00 and set an "overweight" rating on the stock in a research report on Thursday, October 23rd. Wells Fargo & Company raised their target price on shares of Moody's from $620.00 to $660.00 and gave the stock an "overweight" rating in a report on Wednesday, January 14th. Stifel Nicolaus set a $574.00 price target on Moody's and gave the company a "buy" rating in a research note on Monday, January 5th. Wall Street Zen lowered Moody's from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. Finally, Mizuho increased their target price on Moody's from $539.00 to $550.00 and gave the stock a "neutral" rating in a report on Tuesday, October 28th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $558.56.

Moody's Stock Down 6.0%

The company has a quick ratio of 1.84, a current ratio of 1.84 and a debt-to-equity ratio of 1.70. The firm has a 50 day moving average of $507.50 and a two-hundred day moving average of $498.90. The firm has a market capitalization of $75.37 billion, a price-to-earnings ratio of 34.06, a price-to-earnings-growth ratio of 2.09 and a beta of 1.44.

Insider Buying and Selling at Moody's

In related news, CEO Robert Fauber sold 575 shares of the business's stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $498.90, for a total transaction of $286,867.50. Following the sale, the chief executive officer owned 61,082 shares in the company, valued at $30,473,809.80. The trade was a 0.93% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.14% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Moody's

Hedge funds have recently made changes to their positions in the stock. Rexford Capital Inc. acquired a new stake in Moody's during the 2nd quarter valued at approximately $25,000. Newbridge Financial Services Group Inc. acquired a new stake in shares of Moody's during the second quarter worth $25,000. Caitlin John LLC acquired a new position in Moody's in the third quarter valued at $27,000. Johnson Financial Group Inc. bought a new stake in Moody's during the second quarter valued at $28,000. Finally, Ares Financial Consulting LLC acquired a new stake in Moody's during the 4th quarter worth about $29,000. 92.11% of the stock is currently owned by institutional investors.

Moody's Company 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.

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.