Michael L. West, President of Moody's (NYSE:MCO) Investors Service, recently sold shares of Moody's Corp (NYSE:MCO) worth approximately $5.18 million, according to a recent SEC filing. The sales, which occurred on November 8, involved a total of 10,896 shares, with prices ranging from $474.44 to $475.65 per share.
In addition to the sales, West also exercised stock options to acquire shares at prices ranging from $276.84 to $325.99 per share, totaling $2.99 million. These transactions left West with a total of 8,607.404 shares in direct ownership following the completion of the sales and acquisitions.
In other recent news, Moody's Corporation has reported substantial financial growth in the third quarter of 2024, with a revenue increase of 23% to $1.8 billion and a 32% rise in adjusted diluted earnings per share. This growth was largely driven by the ratings business, particularly investment-grade issuance, leading to a 70% surge in transactional revenue. Baird analysts have raised Moody's stock price target to $512 from $490, maintaining an Outperform rating and highlighting the impressive performance of Moody's Investor Service (MIS).
The analysts also noted the company's favorable risk/reward balance and a positive outlook for future issuance, despite a softer fourth quarter forecast due to in-year pull-forwards and election-related uncertainties. Moody's Analytics (MA) exhibited softer performance, but this was seen as a minor negative as the guidance for MA's Annual Recurring Revenue (ARR) had already been lowered in the previous quarter.
In other recent developments, Moody's has raised its full-year ratings revenue growth guidance to the mid-30s percentage range and adjusted its operating margin expectations for the year to 59-60%. The company's adjusted diluted EPS guidance has also been increased from $11.90 to $12.10, indicating a 21% growth from the previous year. Moody's plans to capitalize on market trends in private credit and sustainable finance, and the integration of RMS is expected to strengthen its position in insurance solutions.
InvestingPro Insights
While Michael L. West's recent stock transactions at Moody's Corp (NYSE:MCO) have caught investors' attention, it's important to consider the company's broader financial picture. According to InvestingPro data, Moody's boasts a substantial market capitalization of $86.11 billion, reflecting its significant presence in the financial services industry.
The company's financial health appears robust, with revenue growth of 20.43% over the last twelve months as of Q3 2024, reaching $6.896 billion. This growth is complemented by a strong gross profit margin of 72.9%, indicating efficient operations and pricing power.
InvestingPro Tips highlight Moody's commitment to shareholder returns, noting that the company has raised its dividend for 15 consecutive years and maintained payments for 27 years. This track record of consistent dividend growth may appeal to income-focused investors, despite the current modest yield of 0.71%.
Another InvestingPro Tip points out that 11 analysts have revised their earnings upwards for the upcoming period, suggesting positive sentiment about Moody's near-term financial performance. This aligns with the company's strong recent performance, including a 40.01% total return over the past year.
Investors seeking a more comprehensive analysis can access additional insights through InvestingPro, which offers 11 more tips for Moody's Corp, providing a deeper understanding of the company's financial position and market outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.