Key Points
- Director Elizabeth Cook sold 500 CME Group shares for approximately $140,055 at an average price of $280.11, reducing her holdings by 2.72% to 17,916 shares.
- CME Group exceeded quarterly expectations, reporting $2.99 in earnings per share and $1.71 billion in revenue, while revenue rose 0.8% year over year. The company also declared a $1.30 quarterly dividend, equivalent to a $5.20 annualized payout and a 1.9% yield.
- Analyst sentiment remains mixed: CME has an average “Hold” rating and a consensus price target of $289.75, with targets ranging from $245 to $330. Shares were trading near $280, and institutional investors own 87.75% of the stock.
CME Group Inc. (NASDAQ:CME - Get Free Report) Director Elizabeth Cook sold 500 shares of the business's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $280.11, for a total transaction of $140,055.00. Following the completion of the transaction, the director owned 17,916 shares in the company, valued at approximately $5,018,450.76. The trade was a 2.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.
CME Group Trading Up 1.8%
Shares of CME stock opened at $280.46 on Tuesday. The company has a 50 day moving average of $264.48 and a 200-day moving average of $276.89. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.13. CME Group Inc. has a 12-month low of $218.31 and a 12-month high of $329.16. The firm has a market cap of $100.85 billion, a P/E ratio of 23.79, a PEG ratio of 3.26 and a beta of 0.24.
CME Group (NASDAQ:CME - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The financial services provider reported $2.99 EPS for the quarter, topping analysts' consensus estimates 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 analysts' expectations of $1.68 billion. During the same quarter in the previous year, the firm posted $2.96 EPS. CME Group's revenue was up .8% on a year-over-year basis. Sell-side analysts anticipate that CME Group Inc. will post 12.27 earnings per share for the current year.
CME Group Dividend Announcement
The company also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Wednesday, September 9th will be paid a $1.30 dividend. The ex-dividend date is Wednesday, September 9th. This represents a $5.20 annualized dividend and a dividend yield of 1.9%. CME Group's payout ratio is presently 44.11%.
Key Headlines Impacting CME Group
Here are the key news stories impacting CME Group this week:
- Positive Sentiment: Higher rate-hike odds may boost trading activity. CME Group’s FedWatch tool reportedly indicated an 83%–90% probability of a Federal Reserve rate increase, while other market-based estimates placed the odds near 87%. A more active interest-rate environment can increase hedging and speculative demand across CME’s derivatives markets. Fed rate hike odds article
- Positive Sentiment: Analyst targets imply potential upside. Seven analysts cited by Quiver Quantitative have a median price target of $320, above the approximately $280 level at which Director Elizabeth Cook sold shares. Targets ranged from $260 to $353, suggesting some analysts expect continued earnings and trading-volume support. Quiver Quantitative CME data
- Neutral Sentiment: Institutional positioning was mixed. JPMorgan and other investors added CME shares, while several large asset managers reduced holdings during the latest quarter. This signals differing views on valuation and future growth rather than a clear institutional trend.
- Negative Sentiment: Insider selling provides a modest cautionary signal. Director Elizabeth Cook sold 500 shares for approximately $140,055, reducing her holdings by about 2.7%. Recent insider activity has included more sales than purchases, although the transaction was small relative to her remaining stake and does not by itself indicate a fundamental change.
Wall Street Analysts Forecast Growth
Several research firms have recently weighed in on CME. Rothschild & Co Redburn upgraded CME Group from a "neutral" rating to a "buy" rating and increased their price target for the stock from $316.00 to $323.00 in a research note on Thursday, June 11th. Morgan Stanley upped their price objective on shares of CME Group from $324.00 to $330.00 and gave the company an "overweight" rating in a report on Thursday, July 23rd. Barclays cut their target price on shares of CME Group from $316.00 to $270.00 and set an "equal weight" rating for the company in a research report on Thursday, July 9th. Erste Group Bank downgraded shares of CME Group from a "buy" rating to a "hold" rating in a research note on Friday, June 5th. Finally, The Goldman Sachs Group lowered their price target on shares of CME Group from $267.00 to $245.00 and set a "sell" rating on the stock in a research report on Tuesday, June 30th. Nine investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, CME Group presently has an average rating of "Hold" and an average target price of $289.75.
Check Out Our Latest Stock Analysis on CME
Institutional Trading of CME Group
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Investment Management Company LLC lifted its holdings in shares of CME Group by 0.3% in the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 11,523 shares of the financial services provider's stock worth $3,147,000 after buying an additional 37 shares in the last quarter. Endowment Wealth Management Inc. boosted its position in shares of CME Group by 4.4% in the fourth quarter. Endowment Wealth Management Inc. now owns 895 shares of the financial services provider's stock valued at $244,000 after acquiring an additional 38 shares during the period. NBT Bank N A NY grew its stake in CME Group by 2.3% during the first quarter. NBT Bank N A NY now owns 1,666 shares of the financial services provider's stock valued at $492,000 after acquiring an additional 38 shares in the last quarter. Resonant Capital Advisors LLC grew its stake in CME Group by 3.8% during the first quarter. Resonant Capital Advisors LLC now owns 1,073 shares of the financial services provider's stock valued at $317,000 after acquiring an additional 39 shares in the last quarter. Finally, Root Financial Partners LLC increased its holdings in CME Group by 13.0% during the 4th quarter. Root Financial Partners LLC now owns 348 shares of the financial services provider's stock worth $95,000 after acquiring an additional 40 shares during the period. 87.75% of the stock is currently owned by institutional investors.
About CME Group
(
Get Free Report)
CME Group Inc operates global derivatives marketplaces that provide trading, clearing and settlement services for a broad range of financial and commodity products. Its exchange platforms enable participants to manage risk, discover prices and gain exposure to asset classes including interest rates, equity indexes, foreign exchange, energy, metals, agricultural commodities and digital assets.
The company's principal marketplaces include CME, CBOT, NYMEX and COMEX. Products are offered through futures and options contracts, with electronic trading available through CME Globex as well as exchange-based and privately negotiated transactions.
Further Reading
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