Stock of the Day

Moody's (MCO)

$499.62

-$12.00 (-2.3%)

Market Cap: $92.09B

About Moody's

Moody's Corporation operates as an integrated risk assessment firm worldwide. It operates in two segments, Moody's Analytics and Moody's Investors Services. The Moody's Analytics segment develops a range of products and services that support the risk management activities of institutional participants in financial markets.

It also offers credit research, credit models and analytics, economics data and models, and structured finance solutions; data sets on companies and securities; and SaaS solutions supporting banking, insurance, and know your customer workflows. The Moody's Investors Service segment publishes credit ratings and provides assessment services on various debt obligations, programs and facilities, and entities that issue such obligations, such as various corporate, financial institution, and governmental obligations, as well as structured finance securities. The company was formerly known as Dun and Bradstreet Company and changed its name to Moody's Corporation in September 2000. Moody's Corporation was founded in 1900 and is headquartered in New York, New York.

Moody's Bull Case

Here are some ways that investors could benefit from investing in Moody's Co.:

• Moody's Co. has a strong market capitalization of $92.91 billion, indicating a robust financial position and stability, which can attract long-term investors.
• The stock is currently trading at $522.76, which is near its 1-year high of $513.04, suggesting strong market performance and investor confidence.
• Analysts have a consensus rating of "Moderate Buy" for Moody's Co., with an average target price of $507.36, indicating potential for price appreciation.
• Recent upgrades from multiple brokerages, including a "buy" rating from Citigroup with a price objective of $565.00, reflect positive sentiment and growth expectations for the company.
• Moody's Co. operates in the integrated risk assessment sector, which is increasingly important in today's economic climate, providing essential services that can lead to sustained demand.

Moody's Bear Case

Investors should be bearish about investing in Moody's Co. for these reasons:

• The P/E ratio of 46.83 suggests that the stock may be overvalued compared to its earnings, which could deter value-focused investors.
• Insider selling activity, including a recent sale by CEO Robert Fauber, may raise concerns about the company's future prospects and insider confidence.
• The beta of 1.31 indicates that Moody's Co. is more volatile than the market, which could pose risks for risk-averse investors.
• Despite a strong market position, corporate insiders own only 0.07% of the company's stock, which may suggest a lack of alignment between management and shareholder interests.
• Recent insider sales totaling 1,124 shares worth $540,051 over the last quarter could signal potential concerns about the company's short-term performance.

Recent News

• Moody's Q4 Earnings Transcript (marketbeat.com)
• Moody's downgrades Claros Mortgage Trust ratings to B2, reviews for more cuts (investing.com)
• Moody's upgrades Magnite's corporate family rating to B1, maintains stable outlook (investing.com)
• Nissan Motor Acceptance ratings downgraded by Moody's, negative outlook persists (investing.com)
• D.R. Horton's senior unsecured rating upgraded to A3 by Moody's (investing.com)
• SES shares fall following Moody's negative outlook (investing.com)
• Moody’s price target raised to $540 from $510 at UBS (markets.businessinsider.com)
• Moody’s price target raised to $531 from $481 at BMO Capital (markets.businessinsider.com)
• Moody’s Stock In Spotlight After UBS, BMO Capital Raise Price Targets Following Upbeat Q4: Retail Stays Extremely Bullish (msn.com)
• Moody's downgrades Evoke PLC's rating with stable outlook (investing.com)