CME Group Inc. (NASDAQ:CME) Stock Now Rated "Hold" by Sell-Side Analysts

Key Points

• Analysts maintain a “Hold” consensus: Of 18 covering firms, 10 rate CME Group a buy, six a hold and two a sell. The average 12-month price target is $313.29.
• Quarterly results exceeded expectations: CME reported EPS of $3.02 versus the $2.99 consensus and revenue of $1.74 billion, up 10.6% year over year. Analysts expect full-year EPS of approximately $12.35.
• CME continues to return capital to shareholders: The company paid a quarterly dividend of $1.30, equivalent to a $5.20 annualized dividend and a 1.7% yield. Institutional investors own 87.75% of the stock, while recent insider activity was mixed.

Shares of CME Group Inc. (NASDAQ:CME - Get Free Report) have earned a consensus rating of "Hold" from the eighteen research firms that are covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell rating, six have given a hold rating and ten have given a buy rating to the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $313.29.

A number of brokerages recently commented on CME. Weiss Ratings upgraded shares of CME Group from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday. TD Cowen upped their price target on shares of CME Group from $292.00 to $300.00 and gave the company a "buy" rating in a research report on Monday, October 5th. The Goldman Sachs Group reduced their price objective on CME Group from $267.00 to $245.00 and set a "sell" rating on the stock in a research note on Tuesday, June 30th. UBS Group lifted their price objective on CME Group from $270.00 to $310.00 and gave the stock a "neutral" rating in a report on Thursday. Finally, Piper Sandler reissued an "overweight" rating and issued a $330.00 target price (up from $295.00) on shares of CME Group in a research note on Thursday.

Insider Activity

In related news, Director Elizabeth Cook sold 500 shares of the company's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $280.11, for a total transaction 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 position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director William Shepard bought 293 shares of the company's stock in a transaction dated Friday, September 25th. The shares were purchased at an average price of $268.76 per share, with a total value of $78,746.68. Following the completion of the acquisition, the director owned 263,289 shares of the company's stock, valued at $70,761,551.64. This trade represents a 0.11% increase in their position. The SEC filing for this purchase provides additional information. Insiders sold 15,900 shares of company stock valued at $4,377,655 in the last three months. Corporate insiders own 0.30% of the company's stock.

Institutional Investors Weigh In On CME Group

Several institutional investors and hedge funds have recently modified their holdings of CME. Whipplewood Advisors LLC lifted its stake in shares of CME Group by 2,075.0% in the 1st quarter. Whipplewood Advisors LLC now owns 87 shares of the financial services provider's stock valued at $26,000 after purchasing an additional 83 shares during the period. First Community Trust NA purchased a new stake in shares of CME Group in the 3rd quarter worth about $26,000. North Point Portfolio Managers Corp OH purchased a new stake in shares of CME Group in the 3rd quarter worth about $26,000. Main Street Group LTD bought a new position in shares of CME Group in the 1st quarter worth about $32,000. Finally, Mowery & Schoenfeld Wealth Management LLC bought a new position in shares of CME Group in the 2nd quarter worth about $28,000. 87.75% of the stock is owned by hedge funds and other institutional investors.

CME Group Price Performance

CME opened at $305.71 on Monday. The firm has a market capitalization of $109.93 billion, a P/E ratio of 25.08, a price-to-earnings-growth ratio of 3.73 and a beta of 0.24. CME Group has a one year low of $218.31 and a one year high of $329.16. The company has a fifty day moving average price of $277.60 and a 200-day moving average price of $270.47. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.02 and a quick ratio of 1.02.

CME Group (NASDAQ:CME - Get Free Report) last posted its earnings results on Wednesday, October 21st. The financial services provider reported $3.02 EPS for the quarter, topping the consensus estimate of $2.99 by $0.03. CME Group had a return on equity of 16.23% and a net margin of 63.33%. The business had revenue of $1.74 billion during the quarter, compared to analysts' expectations of $1.71 billion. During the same period in the previous year, the business earned $2.68 earnings per share. The firm's revenue was up 10.6% on a year-over-year basis. Equities research analysts expect that CME Group will post 12.35 earnings per share for the current fiscal year.

CME Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Wednesday, September 9th were paid a $1.30 dividend. This represents a $5.20 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Wednesday, September 9th. CME Group's payout ratio is presently 42.66%.

More CME Group News

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

• Positive Sentiment: Record quarterly results: CME reported third-quarter revenue of approximately $1.74 billion, up 10.6% year over year and above the $1.71 billion consensus estimate. EPS of $3.02 also exceeded expectations of $2.99, while average daily volume reached a record 29.4 million contracts. CME third-quarter revenue article
• Positive Sentiment: Crypto derivatives momentum: CME recorded approximately $469.5 billion in crypto derivatives volume during the third quarter, highlighting growing demand for regulated digital-asset products. The company has not separately disclosed crypto revenue, so the direct earnings contribution remains unclear. CME crypto derivatives volume article
• Positive Sentiment: More bullish analyst coverage: JPMorgan upgraded CME from “underweight” to “overweight” and set a $367 price target, citing improving volume and earnings prospects. Wells Fargo also raised its target to $333. JPMorgan CME rating
• Positive Sentiment: Expansion opportunities: CME plans to launch CME Securities Clearing on December 7, potentially broadening its clearing business. Management also highlighted strong participation and international volume growth. CME Securities Clearing article
• Neutral Sentiment: Valuation remains debated: UBS lifted its price target from $270 to $310 but retained a “neutral” rating, indicating that much of the improved outlook may already be reflected in the stock. UBS CME rating
• Negative Sentiment: Insider sale: Director Martin Gepsman sold 400 shares for approximately $121,000. The transaction reduced his holdings by 1.56%, but he still owns 25,244 shares, limiting the sale’s significance. CME director stock sale

CME Group Company Profile

CME Group Inc operates global derivatives marketplaces that provide trading, clearing and settlement services for futures and options contracts. Its products cover major asset classes, including interest rates, equity indexes, foreign currencies, agricultural commodities, energy and metals. The company also provides market data, benchmark information and related services used by financial institutions, corporations, producers, investors and other market participants.

CME Group's exchange portfolio includes CME, the Chicago Board of Trade, the New York Mercantile Exchange and COMEX.

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