37,194,072 Shares in Nasdaq, Inc. $NDAQ Acquired by BlackRock Inc.

Key Points

• BlackRock acquired 37.2 million Nasdaq shares worth approximately $2.93 billion, giving it a 6.65% stake. Institutional investors collectively own 72.47% of Nasdaq.
• Nasdaq reported stronger-than-expected quarterly results, with EPS of $1.07 versus the $0.98 consensus estimate and revenue up 14.9% year over year to $2.53 billion.
• Analysts maintain a positive outlook, with a consensus “Buy” rating and an average price target of $110.30, while Nasdaq declared a quarterly dividend of $0.31 per share.

BlackRock Inc. bought a new position in Nasdaq, Inc. (NASDAQ:NDAQ - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 37,194,072 shares of the financial services provider's stock, valued at approximately $2,931,637,000. BlackRock Inc. owned approximately 6.65% of Nasdaq as of its most recent SEC filing.

Other institutional investors also recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in shares of Nasdaq by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 59,916,887 shares of the financial services provider's stock worth $5,819,727,000 after acquiring an additional 268,481 shares in the last quarter. State Street Corp grew its stake in Nasdaq by 1.3% in the fourth quarter. State Street Corp now owns 19,878,600 shares of the financial services provider's stock valued at $1,930,808,000 after purchasing an additional 259,408 shares in the last quarter. Geode Capital Management LLC increased its position in Nasdaq by 3.0% in the 4th quarter. Geode Capital Management LLC now owns 12,851,894 shares of the financial services provider's stock worth $1,243,807,000 after purchasing an additional 378,577 shares during the last quarter. Morgan Stanley increased its position in Nasdaq by 62.6% in the 4th quarter. Morgan Stanley now owns 9,266,562 shares of the financial services provider's stock worth $900,061,000 after purchasing an additional 3,567,843 shares during the last quarter. Finally, Harris Associates L P raised its stake in shares of Nasdaq by 46.0% during the 4th quarter. Harris Associates L P now owns 8,621,689 shares of the financial services provider's stock worth $837,425,000 after purchasing an additional 2,716,280 shares in the last quarter. Institutional investors and hedge funds own 72.47% of the company's stock.

Nasdaq Price Performance

Shares of NDAQ stock opened at $96.71 on Wednesday. The firm's 50 day moving average is $89.26 and its 200-day moving average is $87.97. The firm has a market capitalization of $54.06 billion, a price-to-earnings ratio of 28.20, a PEG ratio of 1.31 and a beta of 0.96. Nasdaq, Inc. has a 1 year low of $76.55 and a 1 year high of $101.79. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.71.

Nasdaq (NASDAQ:NDAQ - Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The financial services provider reported $1.07 EPS for the quarter, topping analysts' consensus estimates of $0.98 by $0.09. Nasdaq had a return on equity of 18.38% and a net margin of 22.60%.The firm had revenue of $2.53 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same period last year, the company earned $0.85 earnings per share. The company's revenue was up 14.9% on a year-over-year basis. Sell-side analysts forecast that Nasdaq, Inc. will post 4.15 EPS for the current fiscal year.

Nasdaq Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 11th will be given a $0.31 dividend. This represents a $1.24 annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Friday, September 11th. Nasdaq's dividend payout ratio (DPR) is currently 36.15%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on NDAQ shares. Rothschild & Co Redburn set a $110.00 price target on Nasdaq in a research note on Thursday, June 11th. Zacks Research upgraded shares of Nasdaq from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 27th. Morgan Stanley reaffirmed an "overweight" rating and issued a $120.00 price target on shares of Nasdaq in a research report on Friday, July 24th. Loop Capital set a $113.00 target price on Nasdaq in a research report on Friday, April 24th. Finally, Barclays reiterated an "overweight" rating and set a $111.00 price target (up from $108.00) on shares of Nasdaq in a report on Friday, July 24th. Two analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, Nasdaq presently has a consensus rating of "Buy" and an average target price of $110.30.

Insider Transactions at Nasdaq

In related news, major shareholder Ab Investor acquired 56,782 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The stock was acquired at an average cost of $85.98 per share, with a total value of $4,882,116.36. Following the completion of the purchase, the insider directly owned 58,439,208 shares in the company, valued at approximately $5,024,603,103.84. This trade represents a 0.10% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Bradley J. Peterson sold 13,000 shares of the stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $92.61, for a total value of $1,203,930.00. Following the completion of the transaction, the executive vice president directly owned 128,293 shares in the company, valued at $11,881,214.73. The trade was a 9.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 41,797 shares of company stock worth $3,926,319 in the last three months. Insiders own 0.60% of the company's stock.

Nasdaq Profile

Nasdaq, Inc is a global financial technology company that operates one of the world's leading electronic securities exchanges and provides a broad array of products and services to capital markets participants. Its core activities include operating the Nasdaq Stock Market and other trading venues, developing and supplying market technology and matching engines to exchanges and trading firms, licensing market data and indices, and offering clearing, trade execution and post-trade solutions. The company also provides market surveillance, risk management and regulatory technology used by exchanges and regulators.

Founded in 1971 by the National Association of Securities Dealers (NASD) as the first electronic stock market, Nasdaq has evolved into a diversified marketplace and technology provider.

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