Fifth Third Bancorp increased its stake in CME Group Inc. (NASDAQ:CME – Free Report) by 95.6% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 185,645 shares of the financial services provider’s stock after buying an additional 90,733 shares during the period. Fifth Third Bancorp owned about 0.05% of CME Group worth $54,830,000 at the end of the most recent reporting period.
Several other institutional investors have also recently added to or reduced their stakes in CME. Asset Dedication LLC grew its holdings in CME Group by 64.9% during the 4th quarter. Asset Dedication LLC now owns 94 shares of the financial services provider’s stock worth $26,000 after acquiring an additional 37 shares in the last quarter. Whipplewood Advisors LLC increased its position in shares of CME Group by 2,075.0% in the 1st quarter. Whipplewood Advisors LLC now owns 87 shares of the financial services provider’s stock worth $26,000 after purchasing an additional 83 shares during the last quarter. FNY Investment Advisers LLC acquired a new stake in shares of CME Group in the 4th quarter valued at about $27,000. Elkhorn Partners Limited Partnership acquired a new stake in shares of CME Group in the 4th quarter valued at about $27,000. Finally, Hilton Head Capital Partners LLC acquired a new stake in shares of CME Group in the 4th quarter valued at about $28,000. 87.75% of the stock is owned by institutional investors and hedge funds.
Insiders Place Their Bets
In related news, Director William R. Shepard purchased 325 shares of the company’s stock in a transaction dated Thursday, June 25th. The shares were acquired at an average cost of $230.57 per share, for a total transaction of $74,935.25. Following the transaction, the director owned 260,442 shares of the company’s stock, valued at $60,050,111.94. This trade represents a 0.12% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Hilda Harris Piell sold 5,753 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $304.63, for a total value of $1,752,536.39. Following the completion of the sale, the insider directly owned 27,702 shares in the company, valued at approximately $8,438,860.26. This trade represents a 17.20% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.30% of the stock is currently owned by corporate insiders.
CME Group Price Performance
CME Group (NASDAQ:CME – Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The financial services provider reported $3.36 EPS for the quarter, beating the consensus estimate of $3.11 by $0.25. CME Group had a net margin of 63.19% and a return on equity of 15.42%. The business had revenue of $1.88 billion during the quarter, compared to analyst estimates of $1.77 billion. During the same period in the previous year, the business posted $2.80 EPS. The company’s quarterly revenue was up 14.5% on a year-over-year basis. Equities analysts anticipate that CME Group Inc. will post 12.24 EPS for the current year.
CME Group Announces Dividend
The firm also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Tuesday, June 9th were issued a $1.30 dividend. The ex-dividend date of this dividend was Tuesday, June 9th. This represents a $5.20 dividend on an annualized basis and a yield of 2.2%. CME Group’s dividend payout ratio (DPR) is currently 44.37%.
Key Headlines Impacting CME Group
Here are the key news stories impacting CME Group this week:
- Positive Sentiment: CME announced new products aimed at expanding trading activity, including Treasury LINK for U.S. Treasury spread trading and a new agriculture index that offers a unified benchmark for the global farm economy. CME Group to launch Treasury LINK for enhanced US Treasury spread trading CME Group’s New Agriculture Index Delivers Unified Price Benchmark for the Global Farm Economy
- Neutral Sentiment: Morgan Stanley kept an overweight rating but lowered its price target on CME to $324 from $353, while Barclays cut its target to $270 and moved to equal weight, signaling reduced near-term expectations but not a fundamentally bearish view. Morgan Stanley cuts CME price target Barclays cuts CME price target
- Negative Sentiment: The CFTC blocked CME’s plan to fast-track 24/7 crude oil futures trading, a setback that could limit a potentially important new revenue stream and raises regulatory risk around product innovation. CFTC to block CME’s plan for 24/7 crude oil futures trading CFTC Blocks for Now CME’s Plan to Offer 24/7 Oil Futures
- Negative Sentiment: Reports also pointed to weaker trading volumes and rising competition weighing on CME Group, which could pressure transaction-based revenue growth if activity remains soft. Competition And Weaker Trading Volumes Are Weighing On CME Group (CME) Stock
Wall Street Analysts Forecast Growth
A number of equities analysts recently commented on the company. Keefe, Bruyette & Woods upgraded CME Group from a “market perform” rating to an “outperform” rating and set a $305.00 price target for the company in a research note on Thursday, June 18th. Piper Sandler set a $320.00 price objective on CME Group in a report on Wednesday, June 17th. Erste Group Bank cut CME Group from a “buy” rating to a “hold” rating in a research note on Friday, June 5th. Raymond James Financial reaffirmed an “outperform” rating and set a $320.00 target price on shares of CME Group in a report on Thursday, July 2nd. Finally, Wall Street Zen lowered CME Group from a “hold” rating to a “sell” rating in a research report on Sunday. Twelve investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, CME Group currently has an average rating of “Moderate Buy” and a consensus price target of $293.59.
CME Group Company Profile
CME Group Inc is a global markets company that operates some of the world’s largest and most liquid derivatives exchanges, including the Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT), the New York Mercantile Exchange (NYMEX) and COMEX. The firm offers futures and options contracts across a broad range of asset classes — including interest rates, equity indexes, foreign exchange, energy, agricultural commodities and metals — and serves a diverse client base of institutional investors, commercial hedgers, brokers and retail participants.
The company’s core services include electronic trading on the CME Globex platform, central clearing through CME Clearing, and distribution of market data, indexes and analytics.
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