Moody's (MCO) CEO Fauber sells 1,467 shares after option exercises
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Moody's Corporation President and CEO Robert Fauber reported a combination of option exercises and share sales in Moody's stock. On April 1, 2026, he exercised employee stock options for 1,167 shares of Common Stock at exercise prices of $113.34 and $167.50 per share. On the same date, he sold 1,467 shares of Common Stock in open-market transactions at $437.77 per share. After these transactions, he directly held 75,488.918 shares of Moody's Common Stock. The exercise and sale activity was executed pursuant to a Rule 10b5-1 trading plan adopted by Mr. Fauber on July 30, 2025, indicating the trades were pre-arranged.
Positive
- None.
Negative
- None.
Insider Trade Summary 10b5-1
Net Seller: 1,467 shares ($642,209)
Net Sell
7 txns
Insider
Fauber Robert
Role
President and CEO
Sold
1,467 shs ($642K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Employee Stock Option (right to buy) | 592 | $0.00 | -- |
| Exercise | Employee Stock Option (right to buy) | 575 | $0.00 | -- |
| Sale | Common Stock | 300 | $437.77 | $131K |
| Exercise | Common Stock | 592 | $113.34 | $67K |
| Sale | Common Stock | 592 | $437.77 | $259K |
| Exercise | Common Stock | 575 | $167.50 | $96K |
| Sale | Common Stock | 575 | $437.77 | $252K |
Holdings After Transaction:
Employee Stock Option (right to buy) — 3,011 shares (Direct);
Common Stock — 75,488.918 shares (Direct)
Footnotes (1)
- Exercise and sale of shares pursuant to a Rule 10b5-1 plan adopted by Mr. Fauber on July 30, 2025. One fourth of options vest each year beginning with the date indicated.
Key Figures
Shares sold: 1,467 shares
Sale price: $437.77 per share
Options exercised: 1,167 shares
+5 more
8 metrics
Shares sold
1,467 shares
Common Stock sold on April 1, 2026
Sale price
$437.77 per share
Open-market Common Stock sales
Options exercised
1,167 shares
Employee Stock Option exercises into Common Stock
Option strike prices
$113.34 and $167.50
Employee Stock Option exercise prices
Post-transaction holdings
75,488.918 shares
Directly owned Common Stock after April 1, 2026
Net buy/sell shares
-1,467 shares
Net share change across reported transactions
Exercise date of one option grant
February 23, 2018
Employee Stock Option with $113.34 strike
Rule 10b5-1 plan adoption
July 30, 2025
Plan governing the exercise and sale transactions
Key Terms
Employee Stock Option, Rule 10b5-1 plan, open-market sale, derivative security, +1 more
5 terms
Employee Stock Option financial
"Employee Stock Option (right to buy)"
An employee stock option is a promise that lets a worker buy company shares later at a predetermined price, often after they stay for a certain period or meet performance goals — think of it like a coupon that locks in today's price for a future purchase. It matters to investors because options align employees’ incentives with company performance, can increase the number of shares outstanding (dilution) when exercised, and represent a compensation cost that affects reported profits and shareholder value.
Rule 10b5-1 plan regulatory
"Exercise and sale of shares pursuant to a Rule 10b5-1 plan"
A Rule 10b5-1 plan is a prearranged, written schedule that lets corporate insiders buy or sell company stock at set times or amounts, even if they later learn material nonpublic information. Think of it like setting an automatic thermostat for trades: it creates a clear record that trades were planned in advance, reducing the risk of insider-trading accusations and helping investors trust that insider transactions are routine rather than based on secret information.
open-market sale financial
"Sale in open market or private transaction"
An open-market sale is when a shareholder sells existing shares directly on a public exchange to any willing buyer, rather than through a private deal. Think of it like putting goods on a busy market stall where price is set by supply and demand; for investors it matters because such sales increase available supply, can put short-term downward pressure on the stock price, and signal changes in liquidity or investor confidence.
derivative security financial
"Exercise or conversion of derivative security"
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
Common Stock financial
"underlying_security_title: Common Stock"
Common stock represents ownership shares in a company, giving investors a stake in its success and a say in important decisions through voting rights. It is the most common type of stock traded on markets and can provide income through dividends, as well as potential for value growth. For investors, holding common stock means sharing in the company’s profits and risks.
FAQ
What insider transactions did Moody's (MCO) CEO Robert Fauber report?
Robert Fauber reported option exercises and share sales. He exercised employee stock options for 1,167 Common Stock shares, then sold 1,467 shares in open-market trades, all on April 1, 2026, under a pre-arranged Rule 10b5-1 trading plan.
What stock options did the Moody's (MCO) CEO exercise in this Form 4?
He exercised employee stock options covering 1,167 shares of Moody's Common Stock. These options had exercise prices of $113.34 and $167.50 per share, originally granted with vesting over four years starting from the dates indicated in the filing.
Were Robert Fauber’s Moody's (MCO) trades under a Rule 10b5-1 plan?
Yes. The filing states the exercise and sale of shares were made pursuant to a Rule 10b5-1 trading plan adopted by Robert Fauber on July 30, 2025, indicating the transactions were pre-scheduled rather than initiated spontaneously.