Wall Street Zen Upgrades CME Group (NASDAQ:CME) to “Sell”

CME Group (NASDAQ:CME) was upgraded by stock analysts at Wall Street Zen from a “strong sell” rating to a “sell” rating in a research report issued on Saturday, Wall Street Zen reports.

Several other brokerages also recently commented on CME. Deutsche Bank Aktiengesellschaft downgraded CME Group from a “buy” rating to a “hold” rating and cut their target price for the stock from $286.00 to $270.00 in a report on Wednesday, August 19th. The Goldman Sachs Group lowered their price objective on CME Group from $267.00 to $245.00 and set a “sell” rating for the company in a research report on Tuesday, June 30th. Rothschild & Co Redburn raised CME Group from a “neutral” rating to a “buy” rating and lifted their price objective for the stock from $316.00 to $323.00 in a research note on Thursday, June 11th. UBS Group reduced their target price on CME Group from $310.00 to $260.00 and set a “buy” rating on the stock in a report on Monday, July 6th. Finally, Barclays decreased 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. Nine research 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. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $289.81.

CME Group Stock Performance

Shares of NASDAQ CME opened at $263.14 on Friday. The firm has a 50 day moving average price of $271.04 and a two-hundred day moving average price of $272.27. The stock has a market cap of $94.62 billion, a P/E ratio of 22.32, a price-to-earnings-growth ratio of 3.10 and a beta of 0.24. CME Group has a 52-week low of $218.31 and a 52-week high of $329.16. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.02 and a current ratio of 1.02.

CME Group (NASDAQ:CME) last issued 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. The company had revenue of $1.71 billion for the quarter, compared to analyst estimates of $1.68 billion. CME Group had a net margin of 63.30% and a return on equity of 15.60%. CME Group’s revenue was up .8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.96 earnings per share. As a group, equities analysts forecast that CME Group will post 12.31 EPS for the current year.

Insider Activity

In other CME Group news, Director William R. Shepard bought 293 shares of the firm’s stock in a transaction that occurred on Friday, September 25th. The stock was acquired at an average price of $268.76 per share, with a total value of $78,746.68. Following the completion of the purchase, the director directly owned 263,289 shares of the company’s stock, valued at approximately $70,761,551.64. This trade represents a 0.11% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Elizabeth A. Cook sold 500 shares of CME Group stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $280.11, for a total value of $140,055.00. Following the completion of the sale, the director owned 17,916 shares of the company’s stock, valued at approximately $5,018,450.76. The trade was a 2.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On CME Group

Institutional investors and hedge funds have recently modified their holdings of the business. NBT Bank N A NY lifted its stake in shares of CME Group by 2.3% in 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 buying an additional 38 shares in the last quarter. Resonant Capital Advisors LLC increased its position in shares of 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 worth $317,000 after acquiring an additional 39 shares in the last quarter. Root Financial Partners LLC increased its position in shares of CME Group by 13.2% during the first quarter. Root Financial Partners LLC now owns 394 shares of the financial services provider’s stock worth $116,000 after acquiring an additional 46 shares in the last quarter. AlphaCentric Advisors LLC raised its holdings in shares of CME Group by 6.1% in the 1st quarter. AlphaCentric Advisors LLC now owns 821 shares of the financial services provider’s stock worth $242,000 after acquiring an additional 47 shares during the last quarter. Finally, Arlington Partners LLC raised its holdings in shares of CME Group by 6.2% in the 2nd quarter. Arlington Partners LLC now owns 843 shares of the financial services provider’s stock worth $186,000 after acquiring an additional 49 shares during the last quarter. 87.75% of the stock is currently owned by institutional investors.

CME Group News Summary

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

• Positive Sentiment: Record trading activity supports revenue prospects: CME Group reported September and third-quarter average daily volume records, with ADV rising 22% year over year in September and 16% for the quarter. Higher volumes generally increase clearing and transaction revenue. CME Group Sets September, Q3 Average Daily Volume Records
• Positive Sentiment: Strong soybean futures participation: CME Group set a new open-interest record in soybean futures, indicating continued engagement in agricultural derivatives and supporting the exchange’s diversified volume base. CME Group Sets New Open Interest Record in Soybean Futures
• Positive Sentiment: Third-quarter earnings expectations remain favorable: Analysts anticipate low double-digit bottom-line growth when CME Group reports third-quarter results later this month, helped by the elevated trading volumes. What You Need to Know Ahead of CME Group’s Earnings Release
• Neutral Sentiment: Investor commentary highlights a volume-versus-price disconnect: Cambiar Investors’ quarterly letter discussed CME Group as a potential addition on weakness, noting that record trading activity has not translated into comparable stock performance. This may attract value-oriented investors but also underscores market hesitation. CME Group Adding on Weakness
• Negative Sentiment: Valuation may limit near-term upside: An analysis asked whether CME Group is fully priced following its push into cryptocurrency futures, suggesting investors may need additional growth or execution evidence to justify further appreciation. Is CME Group Fully Priced After Its Crypto Futures Push?
• Negative Sentiment: Analyst rating adds pressure: Wall Street analysts recently assigned CME Group a “Hold” rating, reinforcing the view that the stock’s strong operating performance may already be reflected in its valuation. CME Group Stock Rated Hold

CME Group Company Profile

CME Group Inc operates global derivatives marketplaces that enable customers to manage risk and trade futures and options contracts. Its exchanges offer products linked to interest rates, equity indexes, foreign currencies, agricultural commodities, energy, metals and other asset classes.

The company also provides central counterparty clearing, settlement and related risk-management services for transactions conducted on its markets. In addition, CME Group offers market data, benchmark products and technology services that support trading, analysis and connectivity for financial institutions, businesses, professional traders and other market participants.

CME Group’s history includes the Chicago Board of Trade, founded in 1848, and the Chicago Mercantile Exchange, established in 1898.