Moody’s Expands Credit Offerings with Acquisition of Numerated From Investing.com

NEW YORK – Moody’s Corporation (NYSE:MCO) has acquired Numerated Growth Technologies, a financial institution lending platform, to expand its lending offerings. The financial details of the transaction were not disclosed. The acquisition is not expected to materially impact Moody’s 2024 financial results.

The acquisition announced today follows a partnership that began in January 2024 and combined Numerated’s technologies with Moody’s expertise in credit rating and monitoring. Numerated is now fully integrated into Moody’s Lending Suite, providing a comprehensive loan origination workflow.

Moody’s President and CEO Rob Fauber said the acquisition aims to accelerate the Moody’s Lending Suite’s capabilities to provide clients with comprehensive risk data and analytical solutions. He highlighted the need for credible lending solutions as bank customers look for improved user experiences and automated processes as part of digital transformation.

Numerated’s platform leverages data and artificial intelligence to streamline bank lending processes and improve application, decision making and closing through increased data integrity. The platform is used by financial institutions with total assets of $3 billion and has already processed over $65 billion in loans.

Moody’s, known for its data, insights and technology, helps clients develop a holistic view of their world to act with confidence. The company employs around 15,000 people in over 40 countries.

This acquisition is part of Moody’s strategic intent to expand its financial analysis and risk assessment services and further consolidate its position in the credit lifecycle management market. The integration of Numerated into Moody’s offering is intended to provide a more robust solution for financial institutions navigating the digital lending landscape.

The information contained in this article is based on a press release.

In other recent news, Moody’s Corporation noted significant developments. The company reported a 23% increase in third-quarter 2024 revenue to $1.8 billion and a 32% increase in adjusted diluted earnings per share. This robust financial performance was primarily driven by ratings business and transaction-based revenue, which grew by 70%.

Baird, an independent analyst firm, raised Moody’s price target to $512 from $490 and maintained an “outperform” rating. The decision was influenced by the excellent performance of Moody’s Investor Service in the third quarter. However, Moody’s Analytics showed a weaker performance when it also rated a slightly negative factor.

The full-year ratings revenue growth forecast has been raised to the mid-30s and adjusted operating margin expectations for the year are now 59-60%. Additionally, Moody’s adjusted diluted earnings per share forecast was raised to $12.10 from $11.90, representing 21% year-over-year growth.

Despite potential macroeconomic and geopolitical uncertainties, Moody’s remains optimistic and plans to benefit from market trends in private credit and sustainable finance. The integration of RMS is intended to strengthen Moody’s position in the area of ​​insurance solutions. These are some of the recent developments that continue to shape the company’s course.

Investing Pro Insights

Moody’s Corporation’s acquisition of Numerated Growth Technologies is consistent with its strong financial position and growth trajectory. According to InvestingPro data, Moody’s has a sizable market capitalization of $86.01 billion, reflecting its significant presence in the financial services industry. The company’s revenue growth of 20.43% over the last twelve months and robust EBITDA growth of 35.21% over the same period highlight its ability to build the business and effectively integrate potential new acquisitions.

InvestingPro tips highlight Moody’s commitment to shareholder value, as the company has increased its dividend for 15 consecutive years and has paid dividends continuously for 27 years. This consistent dividend policy suggests financial stability and could reassure investors that the company is able to fund strategic acquisitions like Numerated without jeopardizing shareholder returns.

Additionally, the acquisition of Numerated’s lending platform complements Moody’s existing strengths. With a high gross margin of 72.9% and an operating profit margin of 42.04%, Moody’s demonstrates efficient operations that could be further improved by integrating Numerated’s AI-powered technologies into its lending suite.

It’s worth noting that Moody’s is trading at a high price-to-earnings ratio of 43.07, indicating investor confidence in the company’s growth prospects, including the expected benefits from this latest acquisition. For investors seeking more comprehensive analysis, InvestingPro offers 11 tips that could provide deeper insights into Moody’s additional financial health and market position.

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