NEW YORK—Moody's Corporation (NYSE:MCO) President and CEO, Robert Fauber, recently sold 281 shares of the company's common stock at a price of $478.99 per share, totaling $134,596. This transaction was part of a Rule 10b5-1 plan that Fauber adopted on July 30, 2024.
In addition to the sale, Fauber exercised stock options to acquire 281 shares at prices ranging from $80.81 to $113.34, with the total value of these option exercises amounting to $27,459. Following these transactions, Fauber holds 61,354.364 shares of Moody's common stock.
These transactions were reported in a Form 4 filing with the Securities and Exchange Commission, reflecting activity on November 15, 2024.
In other recent news, Moody's Corporation reported a robust financial performance for the third quarter of 2024. The company observed a 23% increase in revenue, amounting to $1.8 billion, and a 32% rise in adjusted diluted earnings per share, primarily due to the strong performance of the ratings business. Moody's Analytics also reported a 7% increase in revenue, with recurring revenue up by 9%. Baird analysts have subsequently raised the price target for Moody's stock to $512, maintaining an Outperform rating, and highlighted the excellent performance of Moody's Investor Service (MIS). Despite a softer outlook for the fourth quarter of 2024, Moody's maintains an optimistic outlook for the future, supported by favorable market conditions. The company has revised its full-year ratings revenue growth guidance to the mid-30s percentage range and adjusted operating margin expectations for the year to 59-60%. Moody's anticipates capitalizing on market trends in private credit and sustainable finance, and the integration of RMS is expected to strengthen its position in insurance solutions. These are recent developments in the company's performance and outlook.
InvestingPro Insights
To provide context for Robert Fauber's recent stock transactions, let's examine some key financial metrics and insights for Moody's Corporation (NYSE:MCO).
According to InvestingPro data, Moody's boasts a substantial market capitalization of $85.41 billion, underlining its significant presence in the financial services sector. The company's revenue growth has been impressive, with a 20.43% increase over the last twelve months as of Q3 2024, reaching $6.896 billion. This growth trajectory is further emphasized by a robust quarterly revenue growth of 23.17% in Q3 2024.
Moody's profitability is noteworthy, with a gross profit margin of 72.9% and an operating income margin of 42.04% for the last twelve months. These figures suggest strong operational efficiency and pricing power within its market niche.
InvestingPro Tips highlight that Moody's has maintained dividend payments for 27 consecutive years and has raised its dividend for 15 consecutive years. This consistent dividend policy may be attractive to income-focused investors, although the current dividend yield stands at a modest 0.72%.
The company's stock performance has been strong, with a one-year price total return of 33.81% as of the latest data. This outperformance aligns with another InvestingPro Tip indicating that Moody's has delivered high returns over the last decade.
It's worth noting that Moody's is trading at a high P/E ratio of 42.79, which could suggest investor confidence in future growth prospects. However, this valuation metric also indicates that the stock may be priced at a premium compared to its peers.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights, with 11 more tips available for Moody's Corporation.
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