Shares of CME Group Inc. (NASDAQ:CME – Get Free Report) have been given an average recommendation of “Hold” by the eighteen brokerages that are presently covering the firm, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation and eight have given a buy recommendation to the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $291.62.
CME has been the subject of several recent analyst reports. Bank of America boosted their target price on CME Group from $226.00 to $230.00 and gave the company an “underperform” rating in a research report on Thursday, July 23rd. Wells Fargo & Company began coverage on CME Group in a research note on Friday, October 2nd. They set an “overweight” rating and a $301.00 price target for the company. Barclays boosted their price objective on CME Group from $270.00 to $281.00 and gave the company an “equal weight” rating in a report on Wednesday. TD Cowen upped their price objective on CME Group from $292.00 to $300.00 and gave the company a “buy” rating in a research report on Monday. Finally, Wall Street Zen upgraded shares of CME Group from a “strong sell” rating to a “sell” rating in a report on Saturday, October 3rd.
Check Out Our Latest Stock Analysis on CME Group
CME Group News Summary
- Positive Sentiment: Wells Fargo initiated coverage with an Overweight rating, adding a new bullish institutional view on CME’s exchange business and prospects. Wells Fargo initiates coverage of CME Group with overweight rating
- Positive Sentiment: Record French government debt and widening bond yields could increase demand for interest-rate and bond derivatives. That environment may lift trading volumes at CME and other U.S. market operators as investors hedge risk. Record French Debt Could Create Opportunities for US Market Operators
- Positive Sentiment: CME remains favorably positioned relative to Intercontinental Exchange. An investor comparison highlights CME’s roughly 22-times earnings valuation and approximately 4.3% dividend yield, which could support its appeal to income-oriented investors. CME Group versus Intercontinental Exchange
- Neutral Sentiment: Gold prices declined as the U.S. dollar strengthened ahead of Federal Reserve meeting minutes. CME benefits from activity across metals, rates and other futures, but the immediate effect on revenue is unclear. Gold Prices Dip as US Dollar Gains Ahead of Fed Policy Minutes
- Negative Sentiment: CME suspended plans to launch a 24/7, 10-barrel crude-oil futures contract after resistance from regulators and major industry hedgers. The decision removes a potential new product and revenue opportunity, although it may prevent implementation and liquidity risks. CME Group’s Plan for 24/7 Oil Trading Scrapped
- Negative Sentiment: Kalshi has asked the CFTC to approve a non-expiring WTI crude-oil futures contract that would trade around the clock. If approved, the product could compete with CME in a strategically important derivatives market. Kalshi Wants Non-Expiring WTI Futures Approval
Insider Activity
In related news, CEO Terrence Duffy sold 15,000 shares of the business’s stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $274.44, for a total value of $4,116,600.00. Following the completion of the sale, the chief executive officer owned 40,630 shares in the company, valued at approximately $11,150,497.20. The trade was a 26.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Elizabeth Cook sold 500 shares of the stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $280.11, for a total value of $140,055.00. Following the completion of the transaction, the director directly owned 17,916 shares in the company, valued at approximately $5,018,450.76. This trade represents a 2.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.30% of the company’s stock.
Hedge Funds Weigh In On CME Group
A number of hedge funds and other institutional investors have recently made changes to their positions in CME. Whipplewood Advisors LLC lifted its stake in CME Group by 2,075.0% in the first quarter. Whipplewood Advisors LLC now owns 87 shares of the financial services provider’s stock worth $26,000 after acquiring an additional 83 shares during the period. First Community Trust NA purchased a new position in CME Group during the 3rd quarter valued at about $26,000. North Point Portfolio Managers Corp OH purchased a new position in CME Group during the 3rd quarter valued at about $26,000. Hilton Head Capital Partners LLC bought a new stake in shares of CME Group in the 4th quarter valued at about $28,000. Finally, Mowery & Schoenfeld Wealth Management LLC bought a new stake in shares of CME Group in the 2nd quarter valued at about $28,000. Institutional investors own 87.75% of the company’s stock.
CME Group Price Performance
CME Group stock opened at $270.27 on Thursday. CME Group has a 12-month low of $218.31 and a 12-month high of $329.16. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.13. The firm has a 50-day moving average price of $271.63 and a 200-day moving average price of $271.41. The firm has a market capitalization of $97.18 billion, a PE ratio of 22.92, a price-to-earnings-growth ratio of 3.54 and a beta of 0.24.
CME Group (NASDAQ:CME – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The financial services provider reported $2.99 EPS for the quarter, beating the consensus estimate of $2.91 by $0.08. CME Group had a net margin of 63.30% and a return on equity of 15.60%. The company had revenue of $1.71 billion for the quarter, compared to the consensus estimate of $1.68 billion. During the same period in the prior year, the firm posted $2.96 EPS. The firm’s revenue was up .8% compared to the same quarter last year. As a group, equities research analysts forecast that CME Group will post 12.28 EPS for the current year.
CME Group Dividend Announcement
The business also recently declared a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Wednesday, September 9th were paid a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend was Wednesday, September 9th. CME Group’s payout ratio is currently 44.11%.
CME Group Company Profile
CME Group Inc operates global derivatives marketplaces that enable customers to manage risk and trade futures and options contracts. Its exchanges offer products linked to interest rates, equity indexes, foreign currencies, agricultural commodities, energy, metals and other asset classes.
The company also provides central counterparty clearing, settlement and related risk-management services for transactions conducted on its markets. In addition, CME Group offers market data, benchmark products and technology services that support trading, analysis and connectivity for financial institutions, businesses, professional traders and other market participants.
CME Group’s history includes the Chicago Board of Trade, founded in 1848, and the Chicago Mercantile Exchange, established in 1898.
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