Form 4: Moody's CEO Fauber Executes Planned Stock Option Exercise and Sale
Statement of Changes in Beneficial Ownership
Moody's President and CEO Robert Fauber exercised stock options and sold common shares on October 1, 2025, as part of a pre-arranged Rule 10b5-1 trading plan.
Summary
- Robert Fauber, President and CEO of Moody's Corp, executed a series of transactions on October 1, 2025.
- These transactions included the exercise of 280 employee stock options at various strike prices.
- Specifically, 55 options were exercised at $80.81, 134 options at $94.18, and 91 options at $113.34.
- Concurrently, Mr. Fauber sold 414 shares of Moody's common stock at a price of $477.97 per share.
- All reported transactions were conducted pursuant to a Rule 10b5-1 trading plan adopted on July 30, 2024.
- Following these transactions, Mr. Fauber beneficially owns 61,215.984 shares of common stock.
- He also retains beneficial ownership of 55, 135, and 6,608 employee stock options from different grants.
Sentiment
Score: 6
Explanation: The filing reports a planned insider transaction involving the exercise of options and sale of shares. While a sale reduces direct ownership, it's a profitable, pre-scheduled event, indicating a neutral to slightly positive sentiment due to the profit-taking aspect.
Positives
- The exercise of options at significantly lower strike prices ($80.81, $94.18, $113.34) compared to the sale price ($477.97) indicates a profitable transaction for the insider.
- The transactions were conducted under a Rule 10b5-1 plan, demonstrating pre-planned activity and reducing concerns about opportunistic insider trading.
Negatives
- The sale of 414 shares by a key executive reduces their direct equity stake in the company, though it is a relatively small amount compared to total holdings.
Future Outlook
Not applicable. This filing is a transactional report of insider stock activity, not a forward-looking statement on company performance or guidance.
Industry Context
Not applicable. This filing details an individual executive's stock transactions and does not provide information relevant to broader industry trends or competitive analysis.
Stakeholder Impact
- Shareholders: Minor dilution from option exercise, but overall impact is minimal given the small number of shares relative to total outstanding. The sale provides liquidity for the executive.
Key Dates
| Date | Description |
|---|---|
| 02/12/2017 | Vesting start date for 55 employee stock options with an exercise price of $80.81. |
| 07/01/2017 | Vesting start date for 134 employee stock options with an exercise price of $94.18. |
| 02/23/2018 | Vesting start date for 91 employee stock options with an exercise price of $113.34. |
| 07/30/2024 | Date Rule 10b5-1 plan was adopted by Mr. Fauber. |
| 10/01/2025 | Date of all reported stock option exercises and common stock sales. |
| 10/02/2025 | Signature date of the reporting person's power of attorney. |
| 02/12/2026 | Expiration date for 55 employee stock options with an exercise price of $80.81. |
| 07/01/2026 | Expiration date for 134 employee stock options with an exercise price of $94.18. |
| 02/23/2027 | Expiration date for 91 employee stock options with an exercise price of $113.34. |
Keywords
Moody's, MCO, Robert Fauber, insider trading, Form 4, stock options, Rule 10b5-1, CEO, stock sale, beneficial ownership
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