Moody’s Co. Plans Quarterly Dividend of $0.77 (NYSE:MCO)

Moody’s Co. (NYSE:MCO) declared a quarterly dividend on Monday, October 23rd, Wall Street Journal reports. Investors of record on Friday, November 24th will be paid a dividend of 0.77 per share by the business services provider on Friday, December 15th. This represents a $3.08 dividend on an annualized basis and a yield of 0.86%. The ex-dividend date of this dividend is Wednesday, November 22nd.

Moody’s has increased its dividend payment by an average of 11.9% annually over the last three years and has increased its dividend every year for the last 14 years. Moody’s has a dividend payout ratio of 27.5% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Moody’s to earn $11.27 per share next year, which means the company should continue to be able to cover its $3.08 annual dividend with an expected future payout ratio of 27.3%.

Moody’s Trading Up 0.9 %

MCO opened at $356.67 on Monday. The firm has a market capitalization of $65.27 billion, a price-to-earnings ratio of 43.39, a PEG ratio of 2.80 and a beta of 1.28. Moody’s has a one year low of $272.70 and a one year high of $363.19. The business has a 50 day simple moving average of $325.88 and a two-hundred day simple moving average of $331.45. The company has a debt-to-equity ratio of 2.04, a current ratio of 1.78 and a quick ratio of 1.78.

Moody’s (NYSE:MCO) last announced its earnings results on Wednesday, October 25th. The business services provider reported $2.43 EPS for the quarter, beating analysts’ consensus estimates of $2.35 by $0.08. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.46 billion. Moody’s had a return on equity of 55.27% and a net margin of 26.42%. The firm’s revenue for the quarter was up 15.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.85 earnings per share. Analysts predict that Moody’s will post 10.03 EPS for the current year.

Analyst Upgrades and Downgrades

MCO has been the subject of a number of research reports. Barclays decreased their price target on shares of Moody’s from $350.00 to $340.00 and set an “equal weight” rating for the company in a research note on Thursday, October 26th. JPMorgan Chase & Co. decreased their target price on Moody’s from $390.00 to $380.00 and set an “overweight” rating for the company in a research report on Wednesday, October 18th. BMO Capital Markets dropped their price target on Moody’s from $399.00 to $366.00 and set an “outperform” rating on the stock in a research report on Thursday, October 26th. Royal Bank of Canada reiterated an “outperform” rating and issued a $381.00 price objective on shares of Moody’s in a report on Thursday, October 26th. Finally, Wolfe Research started coverage on shares of Moody’s in a report on Wednesday, September 13th. They set an “outperform” rating and a $390.00 target price on the stock. Six research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $351.54.

Insider Buying and Selling at Moody’s

In other news, insider Michael L. West sold 2,754 shares of the company’s stock in a transaction that occurred on Wednesday, November 8th. The shares were sold at an average price of $338.38, for a total value of $931,898.52. Following the transaction, the insider now owns 8,396 shares in the company, valued at $2,841,038.48. The sale was disclosed in a legal filing with the SEC, which is available at this link. In other news, insider Michael L. West sold 2,754 shares of the business’s stock in a transaction on Wednesday, November 8th. The stock was sold at an average price of $338.38, for a total value of $931,898.52. Following the completion of the transaction, the insider now owns 8,396 shares in the company, valued at $2,841,038.48. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Richard G. Steele sold 873 shares of the stock in a transaction on Wednesday, November 8th. The shares were sold at an average price of $337.88, for a total value of $294,969.24. Following the sale, the senior vice president now directly owns 628 shares in the company, valued at $212,188.64. The disclosure for this sale can be found here. In the last ninety days, insiders sold 18,903 shares of company stock worth $6,270,468. 0.42% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MCO. Markel Corp grew its position in Moody’s by 0.8% in the 1st quarter. Markel Corp now owns 212,990 shares of the business services provider’s stock worth $71,865,000 after purchasing an additional 1,750 shares during the period. Raymond James Trust N.A. grew its holdings in shares of Moody’s by 6.8% in the first quarter. Raymond James Trust N.A. now owns 2,126 shares of the business services provider’s stock worth $717,000 after acquiring an additional 135 shares during the period. Prudential PLC purchased a new stake in Moody’s during the first quarter valued at $1,078,000. Sequoia Financial Advisors LLC lifted its holdings in Moody’s by 8.7% in the first quarter. Sequoia Financial Advisors LLC now owns 1,980 shares of the business services provider’s stock valued at $668,000 after acquiring an additional 158 shares during the period. Finally, Candriam Luxembourg S.C.A. grew its stake in shares of Moody’s by 2.3% during the 1st quarter. Candriam Luxembourg S.C.A. now owns 30,994 shares of the business services provider’s stock valued at $10,457,000 after purchasing an additional 684 shares during the period. Institutional investors own 90.07% of the company’s stock.

Moody’s Company Profile

Moody's Corporation operates as an integrated risk assessment firm worldwide. It operates in two segments, Moody's Investors Service and Moody's Analytics. 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 and structured finance securities.