CME Group (NASDAQ:CME) Stock Price Up 7.4% Following Better-Than-Expected Earnings

CME Group Inc. (NASDAQ:CMEGet Free Report)’s stock price was up 7.4% on Wednesday following a better than expected earnings announcement. The company traded as high as $254.02 and last traded at $254.9870. 465,151 shares changed hands during trading, a decline of 83% from the average daily volume of 2,750,870 shares. The stock had previously closed at $237.38.

The financial services provider reported $2.99 EPS for the quarter, topping the consensus estimate of $2.91 by $0.08. CME Group had a return on equity of 15.60% and a net margin of 63.30%.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 prior year, the business earned $2.96 earnings per share. The business’s revenue for the quarter was up .8% on a year-over-year basis.

CME Group Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Tuesday, June 9th were given a dividend of $1.30 per share. The ex-dividend date was Tuesday, June 9th. This represents a $5.20 annualized dividend and a yield of 2.0%. CME Group’s dividend payout ratio is 44.37%.

Key Headlines Impacting CME Group

Here are the key news stories impacting CME Group this week:

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. Keefe, Bruyette & Woods raised shares of CME Group from a “market perform” rating to an “outperform” rating and set a $305.00 price target on the stock in a research note on Thursday, June 18th. Wall Street Zen cut shares of CME Group from a “hold” rating to a “sell” rating in a research report on Sunday, July 12th. UBS Group reduced their price objective on CME Group from $310.00 to $260.00 and set a “buy” rating on the stock in a report on Monday, July 6th. Weiss Ratings lowered CME Group from a “buy (b)” rating to a “buy (b-)” rating in a research report on Monday, July 13th. Finally, Jefferies Financial Group lowered their target price on CME Group from $356.00 to $349.00 and set a “buy” rating for the company in a research note on Thursday, April 9th. Eleven analysts have rated the stock with a Buy rating, four have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, CME Group has an average rating of “Hold” and a consensus price target of $291.81.

Get Our Latest Stock Analysis on CME

Insider Transactions at CME Group

In other CME Group news, Director William R. Shepard purchased 325 shares of the stock in a transaction dated Thursday, June 25th. The stock was bought at an average price of $230.57 per share, for a total transaction of $74,935.25. Following the transaction, the director directly owned 260,442 shares in the company, valued at $60,050,111.94. This represents a 0.12% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Terrence A. Duffy sold 35,000 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $298.51, for a total transaction of $10,447,850.00. Following the sale, the chief executive officer directly owned 55,630 shares of the company’s stock, valued at approximately $16,606,111.30. This trade represents a 38.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Empowered Funds LLC boosted its position in shares of CME Group by 11.5% in the 1st quarter. Empowered Funds LLC now owns 10,027 shares of the financial services provider’s stock worth $2,660,000 after purchasing an additional 1,037 shares during the last quarter. Marshall Wace LLP increased its holdings in CME Group by 103.1% in the second quarter. Marshall Wace LLP now owns 3,692 shares of the financial services provider’s stock valued at $1,018,000 after purchasing an additional 121,707 shares during the last quarter. Federated Hermes Inc. increased its holdings in CME Group by 1,325.2% in the second quarter. Federated Hermes Inc. now owns 23,572 shares of the financial services provider’s stock valued at $6,497,000 after purchasing an additional 21,918 shares during the last quarter. Nebula Research & Development LLC acquired a new position in CME Group in the second quarter valued at about $992,000. Finally, The Manufacturers Life Insurance Company lifted its stake in CME Group by 2.6% in the second quarter. The Manufacturers Life Insurance Company now owns 287,876 shares of the financial services provider’s stock valued at $79,344,000 after buying an additional 7,397 shares during the period. Institutional investors and hedge funds own 87.75% of the company’s stock.

CME Group Stock Up 2.0%

The company has a debt-to-equity ratio of 0.13, a current ratio of 1.02 and a quick ratio of 1.02. The stock has a market cap of $92.16 billion, a price-to-earnings ratio of 21.57, a price-to-earnings-growth ratio of 3.10 and a beta of 0.25. The firm has a 50 day simple moving average of $255.00 and a two-hundred day simple moving average of $281.41.

About CME Group

(Get Free Report)

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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