Should You Buy Moody’s Corporation (NYSE:MCO)?

Is Moody’s Corporation (NYSE:MCO) a buy, sell, or hold? The best stock pickers are getting more optimistic. The number of bullish hedge fund bets advanced by 3 in recent months.

In the 21st century investor’s toolkit, there are plenty of methods shareholders can use to track publicly traded companies. A duo of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top investment managers can outperform the broader indices by a very impressive amount (see just how much).

Equally as important, optimistic insider trading sentiment is another way to parse down the marketplace. There are many incentives for a bullish insider to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this method if “monkeys” know where to look (learn more here).

Keeping this in mind, we’re going to take a glance at the key action surrounding Moody’s Corporation (NYSE:MCO).

How are hedge funds trading Moody’s Corporation (NYSE:MCO)?

In preparation for this year, a total of 27 of the hedge funds we track were bullish in this stock, a change of 13% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their stakes meaningfully.

When looking at the hedgies we track, Berkshire Hathaway, managed by Warren Buffett, holds the largest position in Moody’s Corporation (NYSE:MCO). Berkshire Hathaway has a $1.43 billion position in the stock, comprising 1.9% of its 13F portfolio. Coming in second is Jeffrey Ubben of ValueAct Capital, with a $757 million position; 9.5% of its 13F portfolio is allocated to the company. Some other hedgies that hold long positions include Chris Hohn’s Childrens Investment Fund, Charles Akre’s Akre Capital Management and Tiger Global Management LLC.

With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Childrens Investment Fund, managed by Chris Hohn, established the largest position in Moody’s Corporation (NYSE:MCO). Childrens Investment Fund had 135 million invested in the company at the end of the quarter. Lou Simpson’s SQ Advisors also made a $59 million investment in the stock during the quarter. The following funds were also among the new MCO investors: Eric Mindich’s Eton Park Capital, David Stemerman’s Conatus Capital Management, and Christian Leone’s Luxor Capital Group.

Insider trading activity in Moody’s Corporation (NYSE:MCO)

Insider trading activity, especially when it’s bullish, is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest six-month time period, Moody’s Corporation (NYSE:MCO) has experienced 2 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

With the results exhibited by the aforementioned time-tested strategies, everyday investors should always monitor hedge fund and insider trading sentiment, and Moody’s Corporation (NYSE:MCO) applies perfectly to this mantra.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!