Why Moody’s Corporation (NYSE:MCO) Is Trading Up?
Denver, CO, 03/05/2014, (Avauncer.com) - Moody’s Corporation (NYSE:MCO) traded 3.15% higher yesterday as the majority of analysts continues to rate the stock of the credit rating firm as a ‘Buy’, on the back of its solid earnings and its recent condition open offer to ICRA.
Open Offer To ICRA
Moody’s Corporation (NYSE:MCO) recently made a statement that it went ahead with a conditional open offer to ICRA, a credit rating and research firm in India, to acquire its up to 2,650,000 equity shares. The offer is conditional as if at least 2,149,101 equity shares are acquired, then it would increase Moody’s ownership stake from 28.5% to over 50.0%. And in case of full acceptance of the offer, Moody’s stake would touch nearly 55%. The company has offered a price of INR 2,000 per share,payable in cash, which implies a 25.9% premium to ICRA’s closing price on the Indian Stock Exchange, as of the day of the offer, that is, on February 21, 2014. The company said that the tender period of the stake offer will begin April’14 and that it will fund the offer with its international cash in hand. According to Moody’s, the offer reflects the long-standing commitment of the company towards growth of ICRA.
In response to the open offer by Moody’s Corporation (NYSE:MCO) ICRA’s shares on the Indian Stock Exchange rose sharply. The management of ICRA is said to have appointed a committee to review the offer and to present recommendations as to the future steps of the company towards this proposal.
Above Par Earnings
In February, Moody’s Corporation (NYSE:MCO) reported its quarterly earnings data, which turned out to be better than expected. The company posted earnings per share of $0.85 for the quarter, surpassing the Thomson Reuters consensus forecast of $0.76 per share by $0.09. The company earned revenue of $779.20 million during the reported period, as against the market estimate of $743.87 million. Following the reports, the analysts are targeting $3.96 earnings per share for the company in the current fiscal year.DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment. - Contact us at support @ avauncer dot com if you have any questions or comments.