Baird Financial Group Inc. Sells 44,854 Shares of CME Group Inc. $CME

Key Points

• Baird Financial Group reduced its CME Group stake by 16.1%, selling 44,854 shares and retaining 234,410 shares valued at approximately $51.8 million. Institutional investors collectively own 87.75% of CME’s outstanding stock.
• CME Group’s latest quarterly results exceeded expectations, with EPS of $2.99 versus the $2.91 consensus and revenue of $1.71 billion. Analysts maintain a consensus “Hold” rating with an average price target of $289.75.
• CME declared a quarterly dividend of $1.30 per share, equivalent to $5.20 annually and a 1.9% yield, payable September 25 to shareholders of record September 9.

Baird Financial Group Inc. decreased its holdings in shares of CME Group Inc. (NASDAQ:CME - Free Report) by 16.1% in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 234,410 shares of the financial services provider's stock after selling 44,854 shares during the period. Baird Financial Group Inc. owned 0.07% of CME Group worth $51,765,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in the business. BayBridge Capital Group LLC raised its stake in CME Group by 40.9% during the second quarter. BayBridge Capital Group LLC now owns 1,324 shares of the financial services provider's stock valued at $292,000 after buying an additional 384 shares during the last quarter. Arizona State Retirement System grew its stake in shares of CME Group by 1.9% in the second quarter. Arizona State Retirement System now owns 100,671 shares of the financial services provider's stock worth $22,231,000 after acquiring an additional 1,874 shares during the last quarter. Empirical Finance LLC grew its stake in shares of CME Group by 3.5% in the second quarter. Empirical Finance LLC now owns 12,535 shares of the financial services provider's stock worth $2,768,000 after acquiring an additional 424 shares during the last quarter. Nykredit A S bought a new position in shares of CME Group during the second quarter valued at $31,245,000. Finally, Corient Private Wealth LP increased its holdings in shares of CME Group by 66.4% during the second quarter. Corient Private Wealth LP now owns 262,371 shares of the financial services provider's stock valued at $57,940,000 after acquiring an additional 104,730 shares in the last quarter. 87.75% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

CME has been the subject of several recent analyst reports. Keefe, Bruyette & Woods raised CME Group from a "market perform" rating to an "outperform" rating and set a $305.00 price target for the company in a research report on Thursday, June 18th. Raymond James Financial reissued an "outperform" rating and set a $320.00 price objective on shares of CME Group in a research report on Thursday, July 2nd. Erste Group Bank lowered shares of CME Group from a "buy" rating to a "hold" rating in a research note on Friday, June 5th. Weiss Ratings cut shares of CME Group from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, August 11th. Finally, Morgan Stanley upped their target price on shares of CME Group from $324.00 to $330.00 and gave the stock an "overweight" rating in a research note on Thursday, July 23rd. Nine analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, CME Group currently has a consensus rating of "Hold" and an average target price of $289.75.

Insider Buying and Selling

In related news, Director William Shepard bought 325 shares of the business's stock in a transaction on Thursday, June 25th. The stock was acquired at an average price of $230.57 per share, with a total value of $74,935.25. Following the transaction, the director owned 260,442 shares in the company, valued at approximately $60,050,111.94. This trade represents a 0.12% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 0.30% of the company's stock.

CME Group Price Performance

NASDAQ CME opened at $274.70 on Thursday. CME Group Inc. has a one year low of $218.31 and a one year high of $329.16. The stock has a 50-day moving average of $262.03 and a 200 day moving average of $277.67. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.02 and a current ratio of 1.02. The company has a market capitalization of $98.78 billion, a price-to-earnings ratio of 23.30, a PEG ratio of 3.29 and a beta of 0.24.

CME Group (NASDAQ:CME - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The financial services provider reported $2.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.91 by $0.08. The business had revenue of $1.71 billion for the quarter, compared to analysts' expectations of $1.68 billion. CME Group had a net margin of 63.30% and a return on equity of 15.60%. The business's revenue for the quarter was up .8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.96 EPS. On average, sell-side analysts forecast that CME Group Inc. will post 12.27 EPS for the current year.

CME Group Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Wednesday, September 9th will be issued a $1.30 dividend. The ex-dividend date is Wednesday, September 9th. This represents a $5.20 annualized dividend and a yield of 1.9%. CME Group's dividend payout ratio (DPR) is currently 44.11%.

Key Stories Impacting CME Group

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

• Positive Sentiment: Shareholder distribution: CME is scheduled to distribute approximately $467 million in dividends on September 25, reinforcing its appeal to income-oriented investors and highlighting the exchange operator’s strong cash-generation profile. CME Group's $467 Million Dividend: What Shareholders Collect Sept. 25
• Positive Sentiment: Product expansion: CME’s new single-stock futures offer investors leveraged and capital-efficient exposure to individual equities. The product broadens CME’s equity derivatives lineup and could create additional trading volume and fee revenue over time. CME's New Single Stock Futures: What Are The Advantages Vs. Stocks?
• Positive Sentiment: European market entry: CME plans to enter the European dairy market through a deal involving EEX, expanding its addressable market and potentially improving its international commodities presence. CME Group to enter European dairy market through EEX deal
• Neutral Sentiment: Leadership succession: CME named insider Jack Tobin as CFO, succeeding Lynne Fitzpatrick, who is expected to become CEO in March 2027. The planned internal transition may provide continuity, although investors could monitor execution during the leadership change. CME Group names Jack Tobin as CFO
• Neutral Sentiment: Interest-rate backdrop: Reports that Federal Reserve Chair Warsh favors rate hikes, while the Treasury considers buying longer-maturity debt, point to continued uncertainty over rates, inflation and bond-market conditions. These factors can affect CME’s interest-rate and fixed-income trading volumes. Fed and Treasury at Odds
• Negative Sentiment: Regulatory litigation: The Hyperliquid Policy Center filed an amicus brief urging dismissal of CME’s lawsuit against the CFTC. The development adds uncertainty to CME’s regulatory position and could weigh on sentiment surrounding its digital-asset and derivatives initiatives. Hyperliquid Policy Center Files Amicus Brief Urging Dismissal of CME’s Suit Against CFTC

CME Group Company Profile

CME Group Inc operates global derivatives marketplaces that provide trading, clearing and settlement services for a broad range of financial and commodity products. Its exchange platforms enable participants to manage risk, discover prices and gain exposure to asset classes including interest rates, equity indexes, foreign exchange, energy, metals, agricultural commodities and digital assets.

The company's principal marketplaces include CME, CBOT, NYMEX and COMEX. Products are offered through futures and options contracts, with electronic trading available through CME Globex as well as exchange-based and privately negotiated transactions.

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