Bank of America Forecasts Strong Price Appreciation for CME Group (NASDAQ:CME) Stock

CME Group (NASDAQ:CME) had its price objective lifted by research analysts at Bank of America from $226.00 to $230.00 in a report released on Thursday,Benzinga reports. The brokerage currently has an “underperform” rating on the financial services provider’s stock. Bank of America‘s target price points to a potential downside of 9.91% from the stock’s previous close.

A number of other analysts have also weighed in on the stock. The Goldman Sachs Group dropped their target price on shares of CME Group from $267.00 to $245.00 and set a “sell” rating for the company in a report on Tuesday, June 30th. Erste Group Bank lowered CME Group from a “buy” rating to a “hold” rating in a research report on Friday, June 5th. Deutsche Bank Aktiengesellschaft dropped their price objective on CME Group from $342.00 to $322.00 and set a “buy” rating for the company in a report on Thursday, April 23rd. Piper Sandler reduced their target price on CME Group from $329.00 to $295.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 15th. Finally, JPMorgan Chase & Co. upped their target price on CME Group from $249.00 to $250.00 and gave the company an “underweight” rating in a report on Thursday. Eleven research analysts have rated the stock with a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, CME Group currently has an average rating of “Hold” and an average target price of $291.81.

CME Group Trading Up 0.4%

NASDAQ:CME opened at $255.31 on Thursday. The firm has a market capitalization of $92.51 billion, a P/E ratio of 21.65, a P/E/G ratio of 3.16 and a beta of 0.25. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.13. The company has a fifty day moving average of $254.13 and a 200 day moving average of $281.22. CME Group has a 52 week low of $218.31 and a 52 week high of $329.16.

CME Group (NASDAQ:CME) last announced its quarterly earnings results on Wednesday, July 22nd. The financial services provider reported $2.99 earnings per share (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 business had revenue of $1.71 billion for the quarter, compared to analyst estimates of $1.68 billion. During the same quarter last year, the firm earned $2.96 EPS. The company’s revenue was up .8% on a year-over-year basis. On average, research analysts predict that CME Group will post 12.18 earnings per share for the current year.

Insider Activity

In related news, CEO Terrence A. Duffy sold 35,000 shares of the firm’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 completion of the transaction, the chief executive officer owned 55,630 shares of the company’s stock, valued at $16,606,111.30. This trade represents a 38.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director William R. Shepard bought 325 shares of the company’s stock in a transaction on Thursday, June 25th. The stock was bought at an average cost of $230.57 per share, for a total transaction of $74,935.25. Following the completion of the acquisition, the director directly owned 260,442 shares of the company’s stock, valued at approximately $60,050,111.94. This represents a 0.12% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On CME Group

Several institutional investors and hedge funds have recently modified their holdings of the stock. Asset Dedication LLC grew its position in CME Group by 64.9% during the 4th quarter. Asset Dedication LLC now owns 94 shares of the financial services provider’s stock valued at $26,000 after purchasing an additional 37 shares during the last quarter. Whipplewood Advisors LLC raised its holdings 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 buying an additional 83 shares during the last quarter. FNY Investment Advisers LLC purchased a new position in CME Group in the fourth quarter worth about $27,000. Elkhorn Partners Limited Partnership bought a new position in shares of CME Group in the fourth quarter worth approximately $27,000. Finally, Hilton Head Capital Partners LLC bought a new position in shares of CME Group in the fourth quarter worth approximately $28,000. 87.75% of the stock is currently owned by institutional investors.

Trending Headlines about CME Group

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

• Positive Sentiment: CME Group’s Q2 results topped expectations, and the stock was reported higher on the earnings beat. US Stock Market: CME shares jump 6% after Q2 profit beats estimates; strong hedging demand boosts results
• Positive Sentiment: Analysts noted strong fundamentals and at least one rating upgrade following the earnings release, which can support investor confidence. CME Group: Q2 Earnings Results Lead To A Rating Upgrade
• Neutral Sentiment: UBS reiterated a Hold rating and kept its $260 target, signaling solid fundamentals but limited upside at current valuation. Neutral Stance Reiterated on CME as Solid Fundamentals Meet Valuation Limits; $260 Price Target Maintained
• Negative Sentiment: Bank of America and JPMorgan both maintained bearish/underweight views, even though they slightly raised price targets, highlighting ongoing caution about upside. Analyst price target updates
• Negative Sentiment: Short-interest data showed no meaningful short position, so this headline is unlikely to be a real stock driver and does not change the core thesis.

About CME Group

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.