CME Group (NASDAQ:CME) Reaches New 1-Year High Following Strong Earnings

CME Group Inc. (NASDAQ:CME)’s stock price hit a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $230.30 and last traded at $229.41, with a volume of 298100 shares changing hands. The stock had previously closed at $227.14.

The financial services provider reported $2.68 EPS for the quarter, beating the consensus estimate of $2.65 by $0.03. CME Group had a net margin of 56.98% and a return on equity of 12.82%. The business had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.59 billion. During the same quarter in the previous year, the business posted $2.25 EPS. The company’s quarterly revenue was up 18.4% compared to the same quarter last year.

CME Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 25th. Investors of record on Monday, September 9th were paid a dividend of $1.15 per share. The ex-dividend date of this dividend was Monday, September 9th. This represents a $4.60 annualized dividend and a dividend yield of 2.03%. CME Group’s dividend payout ratio (DPR) is presently 52.33%.

Analysts Set New Price Targets

Several research analysts recently commented on the stock. Barclays boosted their price objective on shares of CME Group from $219.00 to $231.00 and gave the stock an “equal weight” rating in a research note on Thursday. Royal Bank of Canada reiterated a “sector perform” rating and set a $235.00 price objective on shares of CME Group in a research note on Thursday. Keefe, Bruyette & Woods boosted their price objective on shares of CME Group from $212.00 to $213.00 and gave the stock a “market perform” rating in a research note on Thursday, July 25th. The Goldman Sachs Group boosted their price objective on shares of CME Group from $195.00 to $198.00 and gave the stock a “sell” rating in a research note on Thursday, October 3rd. Finally, Redburn Atlantic lowered shares of CME Group from a “buy” rating to a “neutral” rating and set a $244.00 price objective for the company. in a research note on Tuesday, October 8th. Four investment analysts have rated the stock with a sell rating, seven have given a hold rating and four have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $222.07.

Insiders Place Their Bets

In other news, CFO Lynne Fitzpatrick sold 754 shares of the company’s stock in a transaction on Sunday, September 15th. The shares were sold at an average price of $216.99, for a total value of $163,610.46. Following the sale, the chief financial officer now directly owns 13,261 shares of the company’s stock, valued at $2,877,504.39. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, Director Bryan T. Durkin sold 7,593 shares of the stock in a transaction on Friday, August 30th. The shares were sold at an average price of $214.59, for a total transaction of $1,629,381.87. Following the sale, the director now directly owns 55,607 shares of the company’s stock, valued at approximately $11,932,706.13. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Lynne Fitzpatrick sold 754 shares of the stock in a transaction on Sunday, September 15th. The stock was sold at an average price of $216.99, for a total transaction of $163,610.46. Following the sale, the chief financial officer now directly owns 13,261 shares in the company, valued at $2,877,504.39. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.30% of the stock is owned by insiders.

Institutional Trading of CME Group

A number of hedge funds have recently added to or reduced their stakes in CME. Hennion & Walsh Asset Management Inc. boosted its holdings in CME Group by 83.0% during the first quarter. Hennion & Walsh Asset Management Inc. now owns 7,630 shares of the financial services provider’s stock worth $1,643,000 after buying an additional 3,461 shares in the last quarter. Romano Brothers AND Company acquired a new position in CME Group during the first quarter worth $828,000. New Mexico Educational Retirement Board raised its position in CME Group by 11.7% during the first quarter. New Mexico Educational Retirement Board now owns 20,935 shares of the financial services provider’s stock worth $4,980,000 after acquiring an additional 2,200 shares during the period. Fiduciary Alliance LLC acquired a new position in CME Group during the first quarter worth $3,191,000. Finally, Aviance Capital Partners LLC acquired a new position in CME Group during the first quarter worth $525,000. 87.75% of the stock is owned by hedge funds and other institutional investors.

CME Group Price Performance

The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.10. The stock’s 50-day simple moving average is $218.57 and its two-hundred day simple moving average is $208.81. The company has a market capitalization of $81.43 billion, a price-to-earnings ratio of 25.70, a PEG ratio of 7.76 and a beta of 0.55.

CME Group Company Profile

CME Group Inc, together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. It offers futures and options products based on interest rates, equity indexes, foreign exchange, agricultural commodities, energy, and metals, as well as fixed income and foreign currency trading services.