Moody's Stock (NYSE:MCO), Trade Ideas

Moody's

Moody's Corporation along with S&P Ratings, is a provider of credit ratings on fixed-income securities. The ratings segment, Moody's Investors Service, includes corporates, structured finance, financial institutions, and public finance ratings. MIS represents a majority of the firm's profit and about half the firm's revenue. The other segment, Moody's Analytics, consists of decision solutions, research and insights, and data and information.

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A month has gone by since the last earnings report for Moody&#39;s (NYSE: MCO). Shares have added about 6.2% in that time frame, outperforming the S&amp;P 500.

Moody&#39;s (MCO) Up 6.2% Since Last Earnings Report: Can It Continue?

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Warren Buffett&#39;s portfolio tilts toward the financial sector, with three top finance stocks, including Bank of America, Moody&#39;s and AmEx.

Warren Buffett&#39;s Top 3 Stocks: Portfolio Allocation To This Sector Increased In Q4

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Moody's Corporation Announced Today That It Has Been Named An Official Cornerstone Partner Of Metlife Stadium, Home Of The New York Jets And New York Giants

Moody's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>) has outperformed the market over the past 5 years by 3.12% on an annualized basis producing an average annual return of 15.17%. Currently, Moody's has a market capitalization of $71.22 billion. 
Buying $1000 In MCO: If an investor had bought $1000 of MCO stock 5 years ago, it would be worth $2,040.75 today based on a price of $390.09 for MCO at the time of writing.
<h3>Moody's's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1712772023_0_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 5 Years Ago, You Would Have $2,000 Today

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Shares of several companies in the broader financial sector are trading lower amid overall market weakness following hotter-than-expected March inflation data.

Barclays analyst Manav Patnaik upgrades Moody's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>) from Equal-Weight to Overweight and raises the price target from $375 to $450.

Upgrades

Price Target

Barclays Upgrades Moody's to Overweight, Raises Price Target to $450

10 analysts have expressed a variety of opinions on Moody's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">7</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Insights from analysts' 12-month price targets are revealed, presenting an average target of $403.9, a high estimate of $450.00, and a low estimate of $350.00. This upward trend is apparent, with the current average reflecting a 0.28% increase from the previous average price target of $402.78.
<img src="https://www.benzinga.com/files/images/story/2024/1712070012_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
A clear picture of Moody's's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Owen Lau</td>
<td>Oppenheimer</td>
<td>Raises</td>
<td>Outperform</td>
<td>$424.00</td>
<td>$411.00</td>
</tr>
<tr>
<td>Alex Kramm</td>
<td>UBS</td>
<td>Raises</td>
<td>Neutral</td>
<td>$380.00</td>
<td>$355.00</td>
</tr>
<tr>
<td>Seth Weber</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$420.00</td>
<td>$455.00</td>
</tr>
<tr>
<td>Jeffrey Meuler</td>
<td>Baird</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$405.00</td>
<td>$425.00</td>
</tr>
<tr>
<td>Ashish Sabadra</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$450.00</td>
<td>-</td>
</tr>
<tr>
<td>Andrew Steinerman</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$410.00</td>
<td>$420.00</td>
</tr>
<tr>
<td>Jeffrey Silber</td>
<td>BMO Capital</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$414.00</td>
<td>$430.00</td>
</tr>
<tr>
<td>Owen Lau</td>
<td>Oppenheimer</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$411.00</td>
<td>$427.00</td>
</tr>
<tr>
<td>Manav Patnaik</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$375.00</td>
<td>$340.00</td>
</tr>
<tr>
<td>Shlomo Rosenbaum</td>
<td>Stifel</td>
<td>Lowers</td>
<td>Hold</td>
<td>$350.00</td>
<td>$362.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Moody's. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Moody's compared to the broader market.</li>
<li>Price Targets: Gaining insights, analysts provide estimates for the future value of Moody's's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Moody's's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/MCO/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Moody's analyst ratings.</a>
<h2>Discovering Moody's: A Closer Look</h2>
Moody's Corporation along with S&amp;P Ratings, is a provider of credit ratings on fixed-income securities. The ratings segment, Moody's Investors Service, includes corporates, structured finance, financial institutions, and public finance ratings. MIS represents a majority of the firm's profit and about half the firm's revenue. The other segment, Moody's Analytics, consists of decision solutions, research and insights, and data and information.
<h3>A Deep Dive into Moody's's Financials</h3>
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Revenue Growth: Moody's's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 0.54%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 22.97%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Moody's's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 10.45%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Moody's's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.36% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a high debt-to-equity ratio of 2.23, Moody's faces challenges in effectively managing its debt levels, indicating potential financial strain.
<h2>How Are Analyst Ratings Determined?</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Scoreboard: 10 Ratings For Moody's

Oppenheimer analyst Owen Lau maintains Moody's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>) with a Outperform and raises the price target from $411 to $424.

Oppenheimer Maintains Outperform on Moody's, Raises Price Target to $424

Moody's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>) has outperformed the market over the past 15 years by 8.13% on an annualized basis producing an average annual return of 21.1%. Currently, Moody's has a market capitalization of $71.44 billion. 
Buying $100 In MCO: If an investor had bought $100 of MCO stock 15 years ago, it would be worth $1,816.78 today based on a price of $391.33 for MCO at the time of writing.
<h3>Moody's's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1711549818_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In This Stock 15 Years Ago Would Be Worth $1,800 Today

A month has gone by since the last earnings report for Moody&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mco#NYSE">MCO</a>). Shares have added about 6.2% in that time frame, outperforming the S&amp;P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Moody&#39;s due for a pullback? Before we dive into how investors and analysts have reacted as of late, let&#39;s take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
<h3>Moody&#39;s Misses on Q4 Earnings &amp; Revenues</h3>
Moody&#39;s reported fourth-quarter 2023 adjusted earnings of $2.19 per share, which lagged the Zacks Consensus Estimate of $2.34. The bottom line, however, jumped 37% from the year-ago quarter figure.
Improvement in global bond issuance volumes and steady demand for analytics supported Moody&#39;s results. The company&#39;s liquidity position was robust during the quarter. Also, stable operating expenses posed a tailwind.
After taking into consideration certain non-recurring items, net income attributable to Moody&#39;s was $340 million or $1.85 per share, up from $246 million or $1.34 per share in the prior-year quarter.
For 2023, adjusted earnings of $9.90 per share missed the Zacks Consensus Estimate of $10.06 but grew 16% year over year. Net income attributable to Moody&#39;s (GAAP) was $1.61 billion or $8.73 per share, up from $1.37 billion or $7.44 per share in the prior-year quarter.
<h3>Revenues Up, Costs Stable</h3>
Quarterly revenues were $1.48 billion, which missed the Zacks Consensus Estimate of $1.49 billion. However, the top line grew 15% year over year.
For 2023, total revenues grew 8% to $5.92 billion. The top line marginally lagged the consensus estimate of $5.93 billion.
Total expenses were $982 million, relatively stable year over year.
Adjusted operating income of $631 million was up 32%. Adjusted operating margin was 42.6%, up from 37% a year ago.
<h3>Solid Segment Performance</h3>
Moody&#39;s Investors Service revenues grew 19% year over year to $684 million. The improvement was mainly driven by solid Corporate Finance, a favorable mix in Public, Project and Infrastructure Finance and improvement in Structured Finance revenues.
Moody&#39;s Analytics revenues increased 11% to $796 million. This was mainly driven by double-digit growth in all lines of business.
<h3>Strong Balance Sheet</h3>
As of Dec 31, 2023, Moody&#39;s had total cash, cash equivalents and short-term investments of $2.19 billion, up from $1.86 billion as of Dec 31, 2022.
The company had $7 billion in outstanding debt and $1.25 billion in additional borrowing capacity under the revolving credit facility.
<h3>Share Repurchase Update</h3>
During the quarter, Moody&#39;s repurchased 0.6 million shares at an average price of $346.8 per share.
<h3>2024 Guidance</h3>
Moody&#39;s expects adjusted earnings to be in the range of $10.25-$11.00 per share. On a GAAP basis, earnings are projected within $9.45-$10.20 per share.
Moody&#39;s projects revenues to increase in the high-single-digit to low-double-digit percent range.
Operating expenses are expected to rise in the mid-to-high-single-digit percent range.
Net interest expenses are estimated to be $240-$260 million.
Adjusted operating margin is expected to be 44-46%. The operating margin is likely to be in the range of 37-39%.
Moody&#39;s expects cash flow from operations of $2.3-$2.5 billion. Free cash flow is projected to be in the range of $1.9-$2.1 billion.
The company will likely repurchase shares worth almost $1 billion.
The effective tax rate is projected to be 22-24%.
<h3>Segment Outlook for 2024</h3>
MIS segment revenues are anticipated to increase in the high-single-digit to low-double-digit percent range.
Adjusted operating margin is expected to be 55.5-57.5%.
Coming to the MA segment, Moody&#39;s anticipates revenues to rise roughly 10%.
Adjusted operating margin is expected to be 30-31%. Further, the segment&#39;s organic Annualized Recurring Revenue (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/arr#NYSE">ARR</a>) is projected to rise in the low-double-digit percent range.
<h3>2022-2023 Geolocation Restructuring Program</h3>
Management expects the program to help the company further adapt to the new global workplace and talent realities. Also, the restructuring plan will accelerate a number of ongoing cost-efficiency initiatives, and includes real estate optimization and increased utilization of lower-cost operational hubs.
The program is expected to result in annualized savings of $145-$165 million per year.
Cash outlays associated with the program are expected to be $36 million, which are likely to be paid through 2024.
The program substantially completed in 2023.
<h3>Medium-Term Targets</h3>
Moody&#39;s projects total revenue growth of at least 10%, with adjusted operating margin in the low-50s range. Adjusted earnings per share are anticipated to increase in the low double-digit percentage range.
MA segment revenues are projected to grow in the low-to-mid teen percentage range, with adjusted operating margin in the mid-30s range.
MIS segment revenues are anticipated to rise in the mid-to-high-single-digit percentage range, with adjusted operating margin in the low-50s range.
&nbsp;
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, Moody&#39;s has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren&#39;t focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It&#39;s no surprise Moody&#39;s has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Moody&#39;s is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Lazard (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/laz#NYSE">LAZ</a>), a stock from the same industry, has gained 6.1%. The company reported its results for the quarter ended December 2023 more than a month ago.
Lazard reported revenues of $760.96 million in the last reported quarter, representing a year-over-year change of +13.4%. EPS of $0.66 for the same period compares with $0.69 a year ago.
For the current quarter, Lazard is expected to post earnings of $0.46 per share, indicating a change of +276.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +5.3% over the last 30 days.
Lazard has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
&nbsp;
<a href="https://www.zacks.com/stock/news/2240858/moody-s-mco-up-6-2-since-last-earnings-report-can-it-continue?cid=CS-BENZ-FT-realtime_blog-2240858">To read this article on Zacks.com click here.</a>

Moody's (MCO) Up 6.2% Since Last Earnings Report: Can It Continue?

Moody's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>) has outperformed the market over the past 5 years by 4.08% on an annualized basis producing an average annual return of 16.89%. Currently, Moody's has a market capitalization of $70.26 billion. 
Buying $1000 In MCO: If an investor had bought $1000 of MCO stock 5 years ago, it would be worth $2,197.97 today based on a price of $384.85 for MCO at the time of writing.
<h3>Moody's's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1710268216_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 5 Years Ago, You Would Have $2,200 Today

Moody's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>) has outperformed the market over the past 15 years by 9.1% on an annualized basis producing an average annual return of 23.33%. Currently, Moody's has a market capitalization of $69.19 billion. 
Buying $1000 In MCO: If an investor had bought $1000 of MCO stock 15 years ago, it would be worth $22,655.54 today based on a price of $380.16 for MCO at the time of writing.
<h3>Moody's's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1709136018_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $1000 Invested In Moody's 15 Years Ago Would Be Worth Today

The finance sector commands just over 24% of Warren Buffett&#8216;s Berkshire Hathaway (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) portfolio. That&#8217;s an increase from 21.75% <a href="https://www.benzinga.com/topic/warren-buffett">from the previous quarter</a>. 
As for other sector allocations:
<ul>
<li>Technology is down from 51.46% in Q3 to 51% in Q4.</li>
<li>Consumer staples is down from 11.37% in Q3 to 10.92% in Q4.</li>
<li>Energy sector is down from 10.58% to 9.60% in Q4.</li>
<li>Healthcare allocation maintained at 1.09%</li>
<li>Consumer discretionary 0.77% to 0.62%</li>
<li>Communications 2.61% in Q3 to 2.37% in Q4</li>
</ul>
Also Read: <a href="https://www.benzinga.com/markets/equities/24/02/37312557/hallelujah-for-shale-why-warren-buffett-likes-american-oil-companies">&#8216;Hallelujah&#8217; For Shale &#8211; Why Warren Buffett Likes American Oil Companies</a>
<h2 class="wp-block-heading">Warren Buffett&#8217;s Top 3 Stocks: Finance</h2>
With his portfolio tilt rising toward the financial sector, investors may want to know the top three finance stocks that command the maximum allocation:
<ol>
<li>Bank of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>): Bank of America stock commands a 9.03% weight in the Berkshire Hathaway portfolio. Buffett bought the holding in 2017, and now owns 12.81% of the company&#8217;s outstanding shares. Bank of America stock currently has an average one-year price target of $40.48, representing an expected upside of 19.69%. No analysts have bearish recommendations on Bank of America, while six analysts have bullish ratings. The street high price target from Oppenheimer is $50, while the street low from Goldman Sachs is $33. </li>
<li>American Express (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXP#NYSE">AXP</a>): The New York-based company has been a holding in the Berkshire Hathaway portfolio since 2001. With over 20% ownership, Buffett&#8217;s stake in the company has American Express stock to dominate an 8.18% allocation in the Berkshire portfolio. American Express's revenue has grown at an average rate of 9.88% annually over the past 5 years. Shares of American Express have seen an annualized return of 17.62%, outperforming the S&amp;P 500 index by 7.68%. This compares to 9.01% growth in the overall Financials sector. However, the average 1-year price target from analysts is $205.8, representing an expected -5.25% downside in 2025. </li>
<li>Moody&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>): Moody&#8217;s commands a 2.77% portfolio allocation and with it, Buffett owns 13.31% of the company&#8217;s outstanding shares. Moody&#8217;s has been a part of the Berkshire Hathaway portfolio since 2001. For Moody&#8217;s stock, the 200-day moving average sits at $348.55, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, which is below the current price of $384.67. When a stock is above its moving average, it is a generally bullish signal. However, the average one-year price target from analysts is $329.33, representing an expected -14.41% downside in 2025. </li>
</ol>
Read Next: B<a href="https://www.benzinga.com//node/37300646">erkshire Hathaway&#8217;s Q4 Operating Earnings Surge 28%, Warren Buffett Pays Touching Tribute To Late Charlie Munger: &#8216;His Relationship With Me Was Part Older Brother, Part Loving Father&#8217;</a>
Image: Flickr

Warren Buffett's Top 3 Stocks: Portfolio Allocation To This Sector Increased In Q4

RBC Capital analyst Ashish Sabadra reiterates Moody's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>) with a Outperform and maintains $450 price target.

Reiteration

RBC Capital Reiterates Outperform on Moody's, Maintains $450 Price Target

During the last three months, 4 analysts shared their evaluations of Moody's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>), revealing diverse outlooks from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for Moody's, presenting an average target of $402.5, a high estimate of $455.00, and a low estimate of $350.00. This upward trend is apparent, with the current average reflecting a 12.35% increase from the previous average price target of $358.25.
<img src="https://www.benzinga.com/files/images/story/2024/1707922825_0.png" alt="price target chart" />
<h2>Decoding Analyst Ratings: A Detailed Look</h2>
The analysis of recent analyst actions sheds light on the perception of Moody's by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Manav Patnaik</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$375.00</td>
<td>$340.00</td>
</tr>
<tr>
<td>Shlomo Rosenbaum</td>
<td>Stifel</td>
<td>Lowers</td>
<td>Hold</td>
<td>$350.00</td>
<td>$362.00</td>
</tr>
<tr>
<td>Jeffrey Silber</td>
<td>BMO Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$430.00</td>
<td>$366.00</td>
</tr>
<tr>
<td>Seth Weber</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Overweight</td>
<td>$455.00</td>
<td>$365.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Moody's. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Moody's compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of Moody's's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Moody's's market position. Stay informed and make well-informed decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/MCO/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Moody's analyst ratings.</a>
<h2>About Moody's</h2>
Moody's, along with S&amp;P Ratings, is a leading provider of credit ratings on fixed-income securities. The ratings segment, Moody's Investors Service, includes corporates, structured finance, financial institutions, and public finance ratings. MIS represents a majority of the firm's revenue and profits. The other segment, Moody's Analytics, consists of research, data, and analytics as well as enterprise risk solutions. RD&amp;A's products include credit research, quantitative credit scores, economic research, business intelligence, know-your-customer tools, commercial real estate data and analytical tools, and training services. ERS includes risk-management software solutions for financial institutions.
<h3>Moody's: Financial Performance Dissected</h3>
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Over the 3 months period, Moody's showcased positive performance, achieving a revenue growth rate of 15.45% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.
Net Margin: Moody's's net margin is impressive, surpassing industry averages. With a net margin of 26.43%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Moody's's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 12.28%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.69%, the company showcases effective utilization of assets.
Debt Management: Moody's's debt-to-equity ratio surpasses industry norms, standing at 2.28. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Expectations For Moody's's Future

Wall Street witnessed one of the worst sessions since the beginning of the year, with widespread declines across the board as stocks were hit by the impact of a <a href="https://www.benzinga.com/news/econ-s/24/02/37092707/us-inflation-rate-runs-hot-in-january-puts-fed-rate-cut-bets-in-jeopardy">higher-than-expected inflation report.</a>
The Consumer Price Index (CPI) rose at a 3.1% annual rate in January, down from December&#8217;s 3.4% but surpassing expectations of 2.9%. Core inflation, which excludes energy and food prices, unexpectedly remained steady at 3.9%, failing to meet the anticipated decline to 3.7%. Monthly fluctuations also exceeded expectations, causing ripples in interest rate forecasts.
Traders swiftly adjusted their positions, lowering their expectations for rate cuts in 2024. March is now completely off the table, with the likelihood of the first cut by June at 76%, and almost fully priced by July. The anticipated number of rate cuts for 2024 has been reduced to four, down from nearly six just a couple of weeks ago.
Treasury yields surged across the board, with the 2-year yield rising by 15 basis points to 4.60%, and the 10-year yield by 10 basis points to 4.29%. The widely followed iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) plummeted 1.3%, reaching lows last seen in early December 2023.
Essentially, every major asset except the U.S. dollar saw declines on Tuesday. Volatility spiked once again, with the CBOE Volatility Index or VIX rising by 8%. Small-cap stocks were hit hardest, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) dropping over 3%.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) slumped by 1.5% after reaching $50,300 overnight, while gold, as tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), fell below $2,000 an ounce for the first time in two months.
<h2 class="wp-block-heading">Tuesday's Performance In Major Indices, ETFs</h2>
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Major Indices &amp; ETFs</td>
<td>Price</td>
<td>%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>4,953.69</td>
<td>-1.4%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>38,218.67</td>
<td>-1.5%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>17,611.80</td>
<td>-1.5%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>1,944.94</td>
<td>-3.5%</td>
</tr>
<tr>
<td>CBOE VIX</td>
<td>15.05</td>
<td>8.0%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was 1.4% lower to $493.76, the SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) fell 1.5% to $382.25 and the tech-heavy Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) dropped 1.6% to $436.72, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>. 
None of the eleven sectors comprising the S&amp;P 500 experienced gains on Tuesday. The Real Estate SPDR Select Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) recorded the largest decline, dropping by 2.7%, closely followed by the Utilities SPDR Select Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>), down 2.2%. 
Industry-wise, gold miners, tracked by the VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>), and solar stocks, monitored through the Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>), were the underperformers, declining by 5.5% and 5%, respectively.
<h2 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h2>
<ul>
<li>Biogen Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIIB#NASDAQ">BIIB</a>) fell 7.5% after the company missed both earnings and revenue estimates last quarter. </li>
<li>SSR Mining Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SSRM#NASDAQ">SSRM</a>) fell 60%, marking the worst performance among Russell 1000 stocks, on suspension of operation at a mine in Turkey. </li>
<li>Other companies reacting to earnings were Waste Management Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WM#NYSE">WM</a>), Coca-Cola Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), down 1.7%, Moody&#8217;s Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>), down 7.6%, Marriot International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAR#NASDAQ">MAR</a>), down 6.3%, Zoetis Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZTS#NYSE">ZTS</a>), down 6%, Ecolab Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ECL#NYSE">ECL</a>), up 8.8%, Datadog Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DDOG#NASDAQ">DDOG</a>), down 4.3%. </li>
<li>Companies reporting after the closing bell are Airbnb Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>), American International Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIG#NYSE">AIG</a>), Welltower Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WELL#NYSE">WELL</a>). </li>
</ul>
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37099227/economists-sound-alarm-on-inflations-stubborn-grip-no-chance-inflation-will-return-">Economists Sound Alarm On Inflation&#8217;s Stubborn Grip: &#8216;No Chance Inflation Will Return To 2%&#8217; Without New Rate Hikes</a>
Photo: Shutterstock

Markets Tumble, VIX Up 8% On Hot Inflation Data, Dollar, Yields Jump As Traders Unwind Rate Cut Bets: What's Driving Markets Tuesday?

Moody's shares are trading lower after the company reported mixed Q4 results and issued soft guidance.

Full Year 2024 Moody&#39;s Corporation Guidance as of February 13, 2024 MOODY&#39;S CORPORATION Current guidance Revenue Increase in the high-single-digit to low-double-digit percent range Operating Expenses Increase in the mid-to-high-single-digit percent range Operating Margin 37% to 39% Adjusted Operating Margin (1) 44% to 46% Interest Expense, Net $240 - $260 million Effective Tax Rate 22% to 24% Diluted EPS $9.45 to $10.20 Adjusted Diluted EPS (1) $10.25 to $11.00 Operating Cash Flow $2.3 to $2.5 billion Free Cash Flow (1) $1.9 to $2.1 billion Share Repurchases Approximately $1.0 billion (subject to available cash, market conditions, M&amp;A opportunities, and other ongoing capital allocation decisions) Moody&#39;s Analytics (MA) Current guidance MA Revenue Increase of approximately 10% ARR (2) Increase in the low-double-digit percent range MA Adjusted Operating Margin 30% to 31% Moody&#39;s Investors Service (MIS) Current guidance MIS Revenue Increase in the high-single-digit to low-double-digit percent range MIS Adjusted Operating Margin 55.5% to 57.5% (1) These metrics are adjusted measures. See below for reconciliation of these measures to their comparable U.S. GAAP measure. (2) Refer to Table 10 within this earnings release for the definition of and further information on the ARR metric.

Earnings

Guidance

Moody's Corporation's 2024 Guidance: Expects Revenue To Increase In The High-Single-Digit To Low-Double-Digit Percent Range; Sees Adjusted EPS Of $10.25-$11.00 Vs. $11.15 Est.

Moody&#39;s Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>) announced today that No&eacute;mie Heuland will join the Company on April 1, 2024 as Senior Vice President and Chief Financial Officer (CFO).
Ms. Heuland brings nearly 25 years of financial leadership experience at large public companies in the finance and technology spaces. She joins Moody&#39;s from Dayforce (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAY#NYSE">DAY</a>, formerly Ceridian)))), a global human capital management software company, where she has served as Executive Vice President and CFO since 2020. Prior to Dayforce, Ms. Heuland spent 12 years with global enterprise application software provider SAP, during which time the company experienced extraordinary growth as it transitioned to a global software as a service (SaaS) business model

Management

Moody's Names Noémie Heuland As Chief Financial Officer, April 1, 2024

Moody&#39;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>) reported quarterly adjsuted earnings of $2.19 per share which missed the analyst consensus estimate of $2.32 by 5.6 percent. This is a 36.87 percent increase over earnings of $1.60 per share from the same period last year. The company reported quarterly sales of $1.48 billion which met the analyst consensus estimate. This is a 14.73 percent increase over sales of $1.29 billion the same period last year.

Moody's Q4 Adj. EPS $2.19 Misses $2.32 Estimate, Sales $1.48B Inline

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Earnings Scheduled For February 13, 2024

Moody's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>) has outperformed the market over the past 15 years by 7.73% on an annualized basis producing an average annual return of 20.32%. Currently, Moody's has a market capitalization of $72.65 billion. 
Buying $100 In MCO: If an investor had bought $100 of MCO stock 15 years ago, it would be worth $1,589.23 today based on a price of $396.99 for MCO at the time of writing.
<h3>Moody's's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1707168611_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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Main Street: Too Expensive To Touch, But Bonds Look Delicious

Moody's named official Cornerstone Partner of MetLife Stadium

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Press Releases

Moody's Recognized for Sustainability Achievements

Moody's Corporation Reports Results for Fourth Quarter and Full Year 2023; Sets Outlook for 2024

Moody's Names Noémie Heuland as Chief Financial Officer

Moody's Corporation to Present at the Raymond James Annual Institutional Investors Conference on March 5, 2024

Moody's Announces 2024 Nonprofit Partners

Moody's Corporation Posted an Updated Management Presentation for Investors

Moody's Corporation to Present at a Fireside Chat Hosted by Bank of America on March 7, 2024

Atsi Sheth Appointed Chief Credit Officer for Moody's Ratings

Date Set For Moody's Earnings Release And Investor Teleconference

Moody's Teams Up with the New York Giants and New York Jets as the New Cornerstone Partner of MetLife Stadium