This Insider Has Just Sold Shares In Moody's Corporation (NYSE:MCO)

By
Simply Wall St
Published
November 18, 2021
NYSE:MCO
Source: Shutterstock

Investors may wish to note that the President of Moody’s Investors Service Inc. of Moody's Corporation, Michael West, recently netted US$72k from selling stock, receiving an average price of US$400. On the bright side, that's just a small sale and only reduced their holding by 2.8%.

Check out our latest analysis for Moody's

Moody's Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Chairman, Raymond McDaniel, sold US$3.4m worth of shares at a price of US$366 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$395. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 3.9% of Raymond McDaniel's holding.

Insiders in Moody's didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:MCO Insider Trading Volume November 19th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Moody's

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Moody's insiders own 0.3% of the company, worth about US$193m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Moody's Tell Us?

An insider sold Moody's shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Moody's is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Moody's. At Simply Wall St, we found 2 warning signs for Moody's that deserve your attention before buying any shares.

Of course Moody's may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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