PineStone Asset Management disclosed in an SEC filing on Friday that it sold 46,977 shares of Moody's Corporation during the quarter ended September 30, an estimated $23.7 million transaction based on the average price for the quarter.
What Happened
PineStone Asset Management Inc. reported a reduction in its stake in Moody's (MCO 0.47%), selling 46,977 shares during the quarter. The sale was valued at an estimated $23.7 million. According to the SEC filing released on Friday, PineStone’s remaining position was nearly 2.3 million shares, worth $1.1 billion.
What Else to Know
PineStone reduced, but did not exit, its position in Moody's; the stake now stands at 6.7% of reportable AUM as of September 30.
Top holdings after the filing:
- NYSE:TSM: $1.8 billion (11.4% of AUM)
- NASDAQ:GOOGL: $1.6 billion (9.7% of AUM)
- NASDAQ:MSFT: $1.5 billion (9.37% of AUM)
- NYSE:AZO: $1.1 billion (7.1% of AUM)
- NYSE:MCO: $1.1 billion (6.7% of AUM)
As of market close on Friday, Moody's shares were priced at $471.04, down 3% over the past year and well underperforming the S&P 500 by 17 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $84.5 billion |
| Revenue (TTM) | $7.3 billion |
| Net Income (TTM) | $2.1 billion |
| Price (as of market close on Friday) | $471.04 |
Company Snapshot
- Moody's offers credit ratings, risk assessment services, financial research, analytics, and software solutions, with revenue primarily from Moody's Investors Service and Moody's Analytics segments.
- The company generates income through subscription-based research, data products, credit ratings, analytical tools, and risk management solutions for institutional clients worldwide.
- It serves financial institutions, corporations, and governments in over 100 countries.
Moody's Corporation is a leading global provider of credit ratings, research, and risk analytics, operating at scale with a diversified business model. The company leverages its established reputation and extensive data assets to deliver essential risk assessment and analytics solutions to financial markets worldwide. Its integrated approach and broad client base reinforce its competitive position in the financial services sector.
Foolish Take
PineStone Asset Management’s partial trim of its Moody’s Corporation position—an estimated $23.7 million sale—might reflect a measured portfolio rebalance in one of its core holdings, as opposed to a bearish shift. Moody’s remains the fund’s fifth-largest holding, accounting for 6.7% of assets, behind long-term positions in Taiwan Semiconductor, Alphabet, Microsoft, and AutoZone.
The move follows a strong operational stretch for Moody’s. In its latest quarter, the firm reported steady recurring revenue growth across both its analytics and ratings businesses, supported by disciplined cost control and a growing demand for data-driven risk insights. CEO Rob Fauber noted that Moody’s continues to “capitalize on the deep currents driving demand for our solutions” while strengthening its earnings engine through innovation and recurring revenue expansion.
With third-quarter earnings due Wednesday, investors will be watching whether issuance trends and corporate borrowing activity have begun to normalize after a sluggish start to 2025. For long-term investors, Moody’s remains well-positioned—its combination of market dominance, high-margin analytics growth, and recurring revenue model offers durable value even amid cyclical credit markets.
Glossary
13F reportable assets under management (AUM): The value of securities a fund manager must disclose quarterly to the SEC on Form 13F.
Quarter (Q3 2025): The third three-month period of the 2025 calendar year, typically July through September.
Stake: The ownership interest or amount of shares held in a particular company by an investor or fund.
Position: The total amount of a specific security owned or held by an investor or fund.
Top holdings: The largest investments in a fund or portfolio, usually by market value or percentage of assets.
Underperforming: Delivering a lower return compared to a benchmark or index over a specific period.
Market Capitalization: The total market value of a company's outstanding shares of stock.
TTM: The 12-month period ending with the most recent quarterly report.
Credit ratings: Evaluations of a borrower's creditworthiness, typically issued by agencies like Moody's.
Risk assessment services: Professional evaluations of potential financial risks facing companies or investments.
Institutional clients: Organizations such as banks, pension funds, or insurance companies that invest large sums of money.
Analytics: The systematic analysis of data or statistics to inform financial or investment decisions.
