Bank of America Corp DE Acquires 1,130,587 Shares of CME Group Inc. $CME

Key Points

• Bank of America increased its CME Group stake by 39.1% in the first quarter, acquiring 1.13 million additional shares and bringing its holdings to 4.02 million shares valued at approximately $1.19 billion. Institutional investors collectively own 87.75% of CME’s stock.
• CME Group exceeded quarterly expectations, reporting EPS of $2.99 versus $2.91 expected and revenue of $1.71 billion versus $1.68 billion expected. The company also maintains a quarterly dividend of $1.30 per share, equivalent to a 1.9% yield.
• Analyst sentiment remains mixed: CME has a consensus “Hold” rating and an average price target of $291.81, while CEO Terrence Duffy and another insider recently sold shares. The company is also pursuing growth through expanded retail futures access and proposed sports-index futures.

Bank of America Corp DE increased its stake in shares of CME Group Inc. (NASDAQ:CME - Free Report) by 39.1% during the first quarter, according to the company in its most recent filing with the SEC. The fund owned 4,019,944 shares of the financial services provider's stock after acquiring an additional 1,130,587 shares during the period. Bank of America Corp DE owned 1.11% of CME Group worth $1,187,290,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Empowered Funds LLC raised its position in CME Group by 11.5% in the first quarter. Empowered Funds LLC now owns 10,027 shares of the financial services provider's stock worth $2,660,000 after purchasing an additional 1,037 shares in the last quarter. Marshall Wace LLP raised its position in CME Group by 103.1% in the 2nd quarter. Marshall Wace LLP now owns 3,692 shares of the financial services provider's stock valued at $1,018,000 after purchasing an additional 121,707 shares during the last quarter. Federated Hermes Inc. increased its position in CME Group by 1,325.2% in the 2nd quarter. Federated Hermes Inc. now owns 23,572 shares of the financial services provider's stock valued at $6,497,000 after acquiring an additional 21,918 shares in the last quarter. Nebula Research & Development LLC acquired a new position in CME Group during the 2nd quarter worth $992,000. Finally, The Manufacturers Life Insurance Company lifted its stake in shares of CME Group by 2.6% during the second quarter. The Manufacturers Life Insurance Company now owns 287,876 shares of the financial services provider's stock valued at $79,344,000 after acquiring an additional 7,397 shares during the period. Institutional investors and hedge funds own 87.75% of the company's stock.

CME Group News Roundup

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

• Positive Sentiment: Expanded retail access to futures: TradeStation is expanding its futures offering to include CME Group’s spot-quoted futures, potentially increasing participation, liquidity and transaction volume across CME’s markets. TradeStation Expands Futures Offering with CME Group Spot-Quoted Futures
• Positive Sentiment: Entry into sports-related derivatives: CME Group plans to launch cash-settled futures tied to sports performance indexes through a partnership with FutureSports. The initiative targets the roughly $650 billion global sports industry and could create a new source of trading and clearing revenue if it receives regulatory approval and attracts hedging demand. CME Group Targets $650 Billion Sports Industry With First Sports Index Futures
• Positive Sentiment: Recent earnings beat expectations: CME’s latest quarterly results exceeded consensus estimates, with earnings per share of $2.99 versus $2.91 expected and revenue of $1.71 billion versus $1.68 billion expected. Revenue increased year over year, reinforcing the company’s strong operating performance and high margins.
• Neutral Sentiment: Federal Reserve holds rates steady: The Fed kept its benchmark rate at 3.50%–3.75%, in line with expectations. The decision does not materially change CME’s outlook, though future rate uncertainty can support activity in interest-rate and other derivatives markets. Fed Holds Rates Between 3.50% and 3.75%
• Negative Sentiment: Minor earnings-estimate reduction: Erste Group Bank lowered its FY2027 EPS forecast to $12.91 from $12.94 and maintained a “Hold” rating. The small revision signals limited near-term upside from that analyst, though the estimate remains above the broader current-year consensus of $12.27.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the company. Erste Group Bank lowered CME Group from a "buy" rating to a "hold" rating in a research note on Friday, June 5th. Rothschild & Co Redburn upgraded CME Group from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $316.00 to $323.00 in a report on Thursday, June 11th. Raymond James Financial reiterated an "outperform" rating and issued a $320.00 price target on shares of CME Group in a research note on Thursday, July 2nd. Weiss Ratings lowered shares of CME Group from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, July 13th. Finally, The Goldman Sachs Group cut their target price on shares of CME Group from $267.00 to $245.00 and set a "sell" rating for the company in a research note on Tuesday, June 30th. Eleven equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, CME Group currently has a consensus rating of "Hold" and an average target price of $291.81.

Insider Activity

In related news, CEO Terrence A. Duffy sold 35,000 shares of CME Group stock in a transaction on Friday, May 15th. The stock was sold at an average price of $298.51, for a total transaction of $10,447,850.00. Following the sale, the chief executive officer directly owned 55,630 shares in the company, valued at approximately $16,606,111.30. This trade represents a 38.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Hilda Harris Piell sold 5,753 shares of CME Group stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $304.63, for a total transaction of $1,752,536.39. Following the completion of the sale, the insider directly owned 27,702 shares in the company, valued at $8,438,860.26. This trade represents a 17.20% decrease in their position. The SEC filing for this sale provides additional information. 0.30% of the stock is currently owned by corporate insiders.

CME Group Price Performance

CME stock opened at $267.36 on Friday. The company has a market capitalization of $96.88 billion, a P/E ratio of 22.68, a PEG ratio of 3.09 and a beta of 0.25. The company has a fifty day moving average price of $251.35 and a 200-day moving average price of $281.15. 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 Inc. has a 52-week low of $218.31 and a 52-week high of $329.16.

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

CME Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Tuesday, June 9th were issued a dividend of $1.30 per share. The ex-dividend date was Tuesday, June 9th. This represents a $5.20 annualized dividend and a yield of 1.9%. CME Group's dividend payout ratio is 44.11%.

CME Group Company Profile

CME Group Inc is a global markets company that operates some of the world's largest and most liquid derivatives exchanges, including the Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT), the New York Mercantile Exchange (NYMEX) and COMEX. The firm offers futures and options contracts across a broad range of asset classes — including interest rates, equity indexes, foreign exchange, energy, agricultural commodities and metals — and serves a diverse client base of institutional investors, commercial hedgers, brokers and retail participants.

The company's core services include electronic trading on the CME Globex platform, central clearing through CME Clearing, and distribution of market data, indexes and analytics.

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