Credit ratings company Moody's Corporation (
) saw its rating cut on Monday by analysts at Piper Jaffray, who
cited a possible SEC action as hampering its near-term
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
Moody's shares fell 90 cents, or -3.9%, in premarket trading
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 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.0 out of 5 stars.
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, as well as a detailed explanation of
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