Insider Trading November 10, 2026 06:31 PM

Moody's CEO Robert Fauber Offloads $890,237 in Stock Following Option Exercises

Fauber sells 1,743 shares at $510.75 each under a pre-arranged trading plan, retaining direct and indirect holdings alongside remaining options.

By Ajmal Hussain
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MCO

Robert Fauber, President and CEO of Moody's Corp. (NASDAQ:MCO), sold 1,743 shares on November 9, 2026, at $510.75 per share for a total of $890,237. The sale followed the exercise of employee stock options for 662 shares at $173.58 and 1,081 shares at $215.07, valued at $347,400. The transactions were executed under a Rule 10b5-1 plan established on August 10, 2026. After the sale, Fauber directly holds 51,363.918 shares and indirectly holds 22,325 shares through a trust. He also retains 7,227 options at $173.58 and 4,320 options at $215.07, vesting annually at 25%. Moody's recently reported third-quarter 2026 results that missed analyst estimates, with adjusted EPS of $4.14 on revenue of $2.02 billion. Stifel lowered its price target to $537 from $550 while maintaining a Buy rating.

Moody's CEO Robert Fauber Offloads $890,237 in Stock Following Option Exercises
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Key Points

  • CEO Robert Fauber sold 1,743 shares at $510.75 each, totaling $890,237, under a Rule 10b5-1 plan established in August 2026.
  • The sale followed option exercises for 662 shares at $173.58 and 1,081 shares at $215.07, valued at $347,400.
  • Moody's third-quarter 2026 results missed analyst estimates, with adjusted EPS of $4.14 and revenue of $2.02 billion.
  • Stifel lowered its price target to $537 from $550 but maintained a Buy rating, noting a weaker quarter on most metrics.

Robert Fauber, President and Chief Executive Officer of Moody's Corp. (NASDAQ:MCO), sold 1,743 shares of the company's common stock on November 9, 2026, according to a regulatory filing. The shares were sold at a price of $510.75 each, amounting to a total transaction value of $890,237. The sale occurred as Moody's stock traded near $510.71, giving the company a market capitalization of $88.1 billion.

The transaction followed the exercise of employee stock options. Fauber acquired 662 common shares at an exercise price of $173.58 per share and an additional 1,081 common shares at an exercise price of $215.07 per share. The total value of these option exercises was $347,400, with prices ranging from $173.58 to $215.07. The sale and option exercises were conducted under a Rule 10b5-1 trading plan, which Fauber established on August 10, 2026.

Following these reported transactions, Fauber directly holds 51,363.918 shares of Moody's common stock. He also holds 22,325 shares indirectly through a trust. In addition, Fauber continues to hold 7,227 employee stock options with an exercise price of $173.58 and 4,320 employee stock options with an exercise price of $215.07. These options vest over time, with one-fourth vesting each year starting from their respective grant dates.

The insider sale comes amid a period of scrutiny for Moody's valuation. According to an analysis, the stock currently appears overvalued relative to its Fair Value, placing it among companies on the most overvalued list. This assessment is based on a Fair Value estimate that runs multiple valuation models.

In other recent developments, Moody's Corporation reported its third-quarter 2026 financial results, which fell short of Wall Street forecasts. The company announced adjusted earnings of $4.14 per share on revenue of $2.02 billion, missing the analyst expectations of $4.25 per share and $2.08 billion in revenue. Despite the miss, Moody's achieved its third consecutive quarter with sales exceeding $2 billion, and its adjusted diluted earnings per share increased by 6% compared to the previous year.

Additionally, Stifel adjusted its price target for Moody's, lowering it from $550 to $537, while maintaining a Buy rating. The firm cited a weaker-than-expected quarter on most financial metrics but did not view this as a significant shift in the company's overall business trajectory. Revenue from Moody's Investors Service was notably affected by a decline in Leveraged Finance issuance, although Investment Grade issuance saw an increase. These developments provide investors with insights into Moody's recent performance and market positioning.

Risks

  • Moody's stock is considered overvalued relative to its Fair Value, which could lead to price correction and impact investor confidence in the financial data and analytics sector.
  • The company's recent quarterly results fell short of analyst expectations, and a decline in Leveraged Finance issuance could pressure future revenue growth in its Investors Service segment.
  • Insider selling activity may be interpreted negatively by some investors, potentially affecting market sentiment and the stock's performance in the near term.

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