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Moody’s Corporation (MCO) Stock Analysis

By Nova Skye | AltStation.io | Updated February 07, 2026

Price

$454.01

Change

-0.81%

Market Cap

$81.43B

Avg Volume

838.6K

Company Overview

Moody’s Corporation provides critical risk assessment tools and services across the globe. The company operates through two main segments: Moody’s Analytics and Moody’s Investors Services. Moody’s Analytics focuses on risk management solutions for financial institutions, offering products like credit models, economic data, and SaaS solutions. Meanwhile, Moody’s Investors Services is known for its credit ratings and assessments of debt obligations, serving a range of clients, including corporations, governments, and structured finance providers.

Moody’s holds a strong competitive position as a market leader in the financial data and analytics sector. Its established reputation and broad suite of products give it an edge over competitors like S&P Global and Fitch Ratings. However, the industry faces challenges from emerging tech startups offering more automated solutions and a growing demand for real-time data. Moody’s must continuously innovate to fend off these threats and maintain its market dominance.

Currently, Moody’s is in a growth phase, expanding its product offerings and geographical reach. The company recently announced strategic investments in technology to enhance its analytics capabilities, aiming to improve efficiency and customer experience. With these moves, Moody’s is positioning itself for sustained growth amidst evolving market dynamics.

Key Financials

Market Cap

$81.43B

Revenue

$7.50B

EBITDA

$3.58B

Gross Margin

73.8%

Profit Margin

29.9%

Revenue Growth

10.7%

Total Cash

$2.26B

Total Debt

$7.46B

Free Cash Flow

$2.07B

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

36.47

Forward P/E

27.56

Beta

1.44

52-Week High

$546.88

52-Week Low

$378.71

EPS

$12.45

50-Day Avg

$506.84

200-Day Avg

$493.16

Price/Book

20.47

Technical Analysis

The stock chart for Moody’s Corporation (MCO) shows a downward trend over the past 52 weeks, with the price declining from a peak of approximately $525 in early February to the current price of $454.01, reflecting a 9.6% decrease. Key resistance is identified at around $500, a level that the stock struggled to surpass multiple times, while support is evident near the $452 level, which has held firm over the last month. The chart features a clear downward channel formed since May, suggesting bearish sentiment. Recent momentum has weakened significantly, especially with the sharp decline observed in late January and February. Currently, at $454.01, the stock sits just above the support level, implying potential weakness if it breaks below this zone, which could lead to further declines. The overall price behavior indicates a lack of sustained buyer interest, as the stock has only briefly recovered after key lower highs throughout the year.

Recent News and Developments

Market Update

Here’s a summary of the latest news and developments for Moody’s Corporation (MCO) stock in the past week:

1. Significant Stock Price Decline in Early February

Moody’s Corporation (MCO) experienced a notable drop in its stock price during the first week of February 2026. On February 3, 2026, the stock decreased by 8.9%, falling from $502.71 to $471.05. This contributed to an 11.2% pullback over the last seven days and a 14.1% decline over the past month, with the stock closing at $457.70 on February 5, 2026.

2. CEO Robert Fauber Engages in Pre-Planned Stock Sales

Moody’s President and CEO, Robert Fauber, conducted routine transactions involving company stock earlier this week. On February 2, 2026, he exercised 592 employee stock options and subsequently sold 592 common shares at an average price of $516.15 per share. A similar transaction occurred on February 3, 2026, involving the exercise and sale of another 575 shares at $498.9 per share, both executed under a Rule 10b5-1 trading plan.

Market Sentiment and Analyst Recommendations

Bull Case

Moody’s is a compounder with 10.7% revenue growth and a 19-analyst buy consensus that sees 27% upside to $575.53. The company beat earnings expectations in Q3 with $3.92 EPS versus $3.70 consensus, showing execution capability. At 36.47x P/E, the valuation is steep but justified for a quasi-monopoly in credit ratings with durable margins and recurring revenue. The stock has support at $452 and is currently trading just above it, offering entry near the low. With $2.26B in cash and only 3.3x debt-to-EBITDA implied by the balance sheet, the balance sheet is solid enough to weather downturns. The February 18 earnings report is a near-term catalyst that could reignite buyer interest if the company maintains guidance and shows resilience.

Bear Case

The 14.1% decline over the past month isn’t noise — it’s institutional money heading for the exits. Callan Family Office dumped 43.1% of its stake in Q3 2025, and CEO Fauber is selling shares at $516 and $499, which is above current price. That’s not confidence. The stock has traded below $500 three times since May and failed every time, suggesting $500 is real resistance not a buying opportunity. At 36.47x P/E, you’re paying growth stock multiples for a cyclical business tied to M&A and credit issuance. If rates stay elevated or recession fears spike, deal flow dries up fast. The downward channel since May is textbook bearish, and breaking below $452 support opens the door to $378 (the 52-week low).

What to Watch

The February 18 earnings report is critical — watch for guidance on 2026 revenue and whether management acknowledges the recent selloff as temporary or structural. Monitor the analyst target range of $460-$660: if the street narrows that band or cuts targets, the bull thesis cracks. Track the 10-day average volume around $452 support; if it breaks on heavy volume, expect a test of $425-$430. Watch CEO and insider trading patterns over the next 30 days — more selling at these levels would be a red flag. Keep an eye on M&A deal flow metrics and investment-grade bond issuance trends in Q1 2026, since Moody’s revenue is directly tied to market activity. Finally, resistance at $500 remains the key technical level; a sustained break above it would suggest institutional accumulation is returning.

Analyst Consensus

BUY

Based on 19 analyst opinions

Low Target

$460.00

Mean Target

$575.53

High Target

$660.00

Earnings and Financial Data

Sector

Financial Services

Industry

Financial Data & Stock Exchanges

Employees

15,952

Earnings & Dividends

Next Earnings

Feb 18, 2026

EPS (Trailing)

$12.45

Dividend Yield

82.0%

Payout Ratio

29.5%

Frequently Asked Questions

Is MCO a good stock to buy?

Yes, Moody’s Corporation (MCO) has an analyst recommendation of BUY with a target price of $575.53. With strong fundamentals, including a P/E ratio of 36.47, it shows potential for growth.

What is MCO’s price target?

The current price target for MCO is $575.53. This represents a potential upside of approximately 26.8% from the current price of $454.01.

Does MCO pay a dividend?

Yes, Moody’s pays a dividend, with a yield of 82.0%. This makes it an attractive option for income-focused investors.

What is MCO’s market capitalization?

Moody’s Corporation has a market cap of $81.43 billion. This positions it as a significant player in the financial services sector.

What has been MCO’s 52-week price range?

MCO has traded between $378.71 and $546.88 over the past year. This range indicates volatility but also opportunities for strategic entry points.

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Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated February 07, 2026.