CME Group (NASDAQ:CME) Stock Picked Up by Analysts at Wells Fargo & Company

Key Points

• Wells Fargo initiated coverage of CME Group with an “overweight” rating and a $301 price target, implying approximately 14.4% upside. However, the broader analyst consensus remains “Hold,” with a $289.81 target.
• CME Group exceeded quarterly expectations, reporting $2.99 in EPS and $1.71 billion in revenue, while analysts expect $12.27 in full-year EPS. Recent record trading volumes are supporting the company’s revenue outlook.
• The stock opened at $263.14 and has traded between $218.31 and $329.16 over the past year. Institutional investors own a substantial 87.75% of outstanding shares, while insider ownership is 0.30%.

Stock analysts at Wells Fargo & Company began coverage on shares of CME Group (NASDAQ:CME - Get Free Report) in a research report issued to clients and investors on Friday, Marketbeat.com reports. The firm set an "overweight" rating and a $301.00 price target on the financial services provider's stock. Wells Fargo & Company's price target would indicate a potential upside of 14.39% from the company's current price.

A number of other brokerages also recently issued reports on CME. JPMorgan Chase & Co. increased their price target on shares of CME Group from $249.00 to $250.00 and gave the stock an "underweight" rating in a report on Thursday, July 23rd. TD Cowen reiterated a "buy" rating and issued a $292.00 price objective on shares of CME Group in a research report on Monday, September 28th. Raymond James Financial reissued an "outperform" rating and set a $320.00 target price on shares of CME Group in a research note on Thursday, July 2nd. Barclays cut their price target on CME Group from $316.00 to $270.00 and set an "equal weight" rating for the company in a research note on Thursday, July 9th. Finally, Piper Sandler lowered their price target on CME Group from $329.00 to $295.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, six have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, CME Group presently has a consensus rating of "Hold" and a consensus price target of $289.81.

CME Group Stock Performance

Shares of CME stock opened at $263.14 on Friday. The stock has a market cap of $94.62 billion, a PE ratio of 22.32, a price-to-earnings-growth ratio of 3.13 and a beta of 0.24. The business has a 50-day simple moving average of $271.04 and a 200-day simple moving average of $272.56. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.13. CME Group has a 52-week low of $218.31 and a 52-week high of $329.16.

CME Group (NASDAQ:CME - Get Free Report) last posted its earnings results on Wednesday, July 22nd. 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 firm had revenue of $1.71 billion for the quarter, compared to analyst estimates of $1.68 billion. During the same period last year, the company earned $2.96 earnings per share. CME Group's revenue for the quarter was up .8% compared to the same quarter last year. On average, equities analysts expect that CME Group will post 12.27 EPS for the current year.

Insider Buying and Selling at CME Group

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

Institutional Trading of CME Group

Large investors have recently bought and sold shares of the business. Bridgewater Advisors Inc. acquired a new position in CME Group during the second quarter worth $612,000. The Manufacturers Life Insurance Company purchased a new position in shares of CME Group during the 2nd quarter worth $53,671,000. FLC Capital Advisors acquired a new position in shares of CME Group during the 4th quarter valued at about $2,122,000. Haverford Trust Co acquired a new position in shares of CME Group during the 2nd quarter valued at about $13,818,000. Finally, Bowie Capital Management LLC purchased a new stake in shares of CME Group in the second quarter valued at about $22,991,000. Hedge funds and other institutional investors own 87.75% of the company's stock.

Key Headlines Impacting CME Group

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.