Moody’s (NYSE:MCO) Earns Buy Rating from Analysts at Bank of America

Bank of America began coverage on shares of Moody’s (NYSE:MCO) in a research note released on Tuesday morning, Marketbeat reports. The firm issued a buy rating and a $550.00 price target on the business services provider’s stock.

A number of other analysts have also weighed in on MCO. Weiss Ratings restated a “buy (b)” rating on shares of Moody’s in a research report on Friday, October 31st. Wall Street Zen cut Moody’s from a “buy” rating to a “hold” rating in a research note on Saturday, January 31st. Wells Fargo & Company boosted their price objective on Moody’s from $620.00 to $660.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 14th. Daiwa Securities Group upgraded Moody’s from a “neutral” rating to an “outperform” rating and increased their target price for the company from $500.00 to $590.00 in a research report on Tuesday, January 13th. Finally, BMO Capital Markets reduced their price target on Moody’s from $534.00 to $507.00 and set a “market perform” rating on the stock in a report on Thursday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $553.75.

Moody’s Stock Performance

NYSE:MCO opened at $449.69 on Tuesday. Moody’s has a twelve month low of $378.71 and a twelve month high of $546.88. The company has a quick ratio of 1.84, a current ratio of 1.74 and a debt-to-equity ratio of 1.66. The stock’s 50-day simple moving average is $497.86 and its 200 day simple moving average is $494.48. The firm has a market capitalization of $80.22 billion, a PE ratio of 32.87, a price-to-earnings-growth ratio of 1.98 and a beta of 1.44.

Moody’s (NYSE:MCO) last issued its earnings results on Wednesday, February 18th. The business services provider reported $3.64 EPS for the quarter, topping the consensus estimate of $3.39 by $0.25. Moody’s had a return on equity of 66.01% and a net margin of 31.86%.The firm had revenue of $1.89 billion during the quarter, compared to the consensus estimate of $1.87 billion. During the same quarter in the previous year, the firm earned $2.62 earnings per share. The business’s quarterly revenue was up 13.0% on a year-over-year basis. Moody’s has set its FY 2026 guidance at 16.400-17.000 EPS. On average, analysts anticipate that Moody’s will post 13.95 EPS for the current fiscal year.

Moody’s Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 13th. Investors of record on Monday, March 2nd will be issued a $1.03 dividend. The ex-dividend date is Monday, March 2nd. This is a boost from Moody’s’s previous quarterly dividend of $0.94. This represents a $4.12 annualized dividend and a yield of 0.9%. Moody’s’s dividend payout ratio (DPR) is currently 30.23%.

Insider Transactions at Moody’s

In other Moody’s news, CEO Robert Fauber sold 592 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $516.15, for a total transaction of $305,560.80. Following the completion of the transaction, the chief executive officer owned 61,082 shares in the company, valued at approximately $31,527,474.30. This trade represents a 0.96% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.14% of the company’s stock.

Hedge Funds Weigh In On Moody’s

A number of hedge funds have recently bought and sold shares of the company. Rexford Capital Inc. acquired a new position in shares of Moody’s in the 2nd quarter valued at about $25,000. Newbridge Financial Services Group Inc. purchased a new position in Moody’s during the 2nd quarter worth $25,000. Birchwood Financial Partners Inc. bought a new stake in Moody’s in the 4th quarter worth about $26,000. Caitlin John LLC purchased a new stake in Moody’s in the 3rd quarter valued at about $27,000. Finally, Johnson Financial Group Inc. bought a new position in shares of Moody’s during the 2nd quarter worth approximately $28,000. Institutional investors own 92.11% of the company’s stock.

Key Moody’s News

Here are the key news stories impacting Moody’s this week:

• Positive Sentiment: Q4 beat — Moody’s reported non‑GAAP EPS of $3.64 and revenue of $1.89B (revenue +13% y/y), outpacing consensus and driven by strong Investor Services and analytics demand. This is the main bullish catalyst behind recent investor interest. MarketBeat: Earnings Report
• Positive Sentiment: Upbeat FY‑2026 outlook — Moody’s issued FY‑2026 EPS guidance of $16.40–$17.00, roughly in line with or slightly ahead of Street expectations, citing strong demand for credit ratings and higher issuance. The guidance supports forward earnings visibility. Reuters: Upbeat 2026 Profit Forecast
• Positive Sentiment: Dividend raised — Moody’s declared a quarterly dividend of $1.03 (9.6% increase versus prior payout), offering modest income support and signaling confidence in cash flow. Ex‑dividend date: March 2. Press Release (PDF)
• Neutral Sentiment: Analyst repositioning — JPMorgan cut its price target from $600 to $560 but kept an Overweight rating (the new PT still implies material upside from current levels). This is mixed: lower target tempers enthusiasm but the rating remains constructive. Benzinga: JPMorgan Price Target Change
• Neutral Sentiment: Business development — Moody’s is expanding its regional presence with a new headquarters in Saudi Arabia, supporting long‑term client access in a growth market. Albawaba: Regional HQ in Saudi Arabia
• Negative Sentiment: Near‑term share reaction and commentary — Some analysts/commentaries framed a post‑earnings pullback as expected and pointed to headwinds (rising expenses, valuation). That narrative can pressure the stock in the short term despite the beat. Seeking Alpha: Post‑earnings Pullback

About Moody’s

Moody’s Corporation is a global provider of credit ratings, research, data and analytics that support financial decision-making and transparency in capital markets. The company traces its origins to the early 20th century when financial analyst John Moody began publishing credit information; today Moody’s is headquartered in New York and serves a broad set of market participants including investors, issuers, financial institutions, corporations, governments and regulators.

Moody’s operates primarily through two complementary businesses.