Moody’s Downgraded at Piper Jaffray; Shares Fall (MCO)

Filed in Gold, Gold Bullion prices, moodys, shares by on May 10, 2010 2 Comments

Credit ratings company Moody’s Corporation ( MCO ) saw its rating cut on Monday by analysts at Piper Jaffray, who cited a possible SEC action as hampering its near-term performance. The firm commented, “A potential SEC enforcement action against Moody’s is the latest threat to the company’s franchise and another factor that likely limits near-term upside in the shares…While we believe that over a 12-24 month period the regulatory/litigation uncertainty will prove manageable, until that resolution is achieved, it will be difficult for the shares to outperform the broader market.” Moody’s shares fell 90 cents, or -3.9%, in premarket trading Monday. The Bottom Line We have avoided shares of MCO since our early June coverage began last year, when the stock was trading at $39.13. The company has a dividend yield of 1.80%, based on Friday’s closing stock price of $23.36. The stock has technical support in the $19-$21 price area. If the shares can rebound, we see overhead resistance around the $26-$27 price levels. We would remain on the sidelines for now. Moody’s Corporation ( MCO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a

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Moody’s Downgraded at Piper Jaffray; Shares Fall (MCO)

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