Bank of America Corp DE Makes New $622.68 Million Investment in CME Group Inc. $CME

Key Points

• Bank of America acquired 2.82 million CME Group shares worth approximately $622.7 million, giving it a 0.78% stake. Institutional investors collectively own 87.75% of CME’s outstanding stock.
• CME reported quarterly revenue of $1.71 billion and EPS of $2.99, beating analyst expectations, while launching leveraged-loan futures and expanding 24/7 silver futures trading to support derivatives activity.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and $289.75 price target. CME shares opened at $275.09, and the company announced a quarterly dividend of $1.30 per share, equivalent to a 1.9% yield.

Bank of America Corp DE purchased a new position in shares of CME Group Inc. (NASDAQ:CME - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 2,819,720 shares of the financial services provider's stock, valued at approximately $622,679,000. Bank of America Corp DE owned 0.78% of CME Group at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of CME. Whipplewood Advisors LLC raised its holdings in CME Group by 2,075.0% during the 1st quarter. Whipplewood Advisors LLC now owns 87 shares of the financial services provider's stock worth $26,000 after buying an additional 83 shares during the period. Hilton Head Capital Partners LLC acquired a new stake in shares of CME Group during the fourth quarter worth $28,000. Mowery & Schoenfeld Wealth Management LLC acquired a new stake in shares of CME Group during the second quarter worth $28,000. Bayban bought a new stake in CME Group in the 4th quarter valued at $31,000. Finally, Main Street Group LTD bought a new stake in CME Group in the 1st quarter valued at $32,000. Institutional investors own 87.75% of the company's stock.

Insider Activity at CME Group

In other CME Group news, Director William R. Shepard bought 325 shares of CME Group stock in a transaction on Thursday, June 25th. The shares were purchased at an average price of $230.57 per share, with a total value of $74,935.25. Following the acquisition, the director owned 260,442 shares in the company, valued at $60,050,111.94. This trade represents a 0.12% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Elizabeth A. Cook sold 500 shares of CME Group stock in a transaction that occurred 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 sale, the director directly owned 17,916 shares in the company, valued at $5,018,450.76. This trade represents a 2.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.30% of the stock is currently owned by corporate insiders.

Key CME Group News

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

• Positive Sentiment: New leveraged-loan futures expand CME’s credit business. CME Group began trading S&P UBS USD Liquid Leveraged Loan Index futures on September 14. The product broadens the exchange’s credit-risk management offerings and could generate incremental volume and revenue as investors hedge exposure to leveraged loans. CME leveraged loan futures announcement
• Positive Sentiment: Early demand for 24/7 silver futures supports product momentum. CME reported that 2,387 100-ounce silver futures contracts traded during the first weekend of round-the-clock trading, representing more than $15 million in notional value. The activity suggests investor interest in extended-hours access and precious-metals risk management. CME silver futures announcement
• Positive Sentiment: Elevated rate uncertainty could lift derivatives activity. CME’s FedWatch tool indicated a high probability of a Federal Reserve rate increase. More volatile interest-rate expectations may increase demand for CME’s futures and options used for hedging and speculation. Fed rate hike odds article
• Neutral Sentiment: Institutional and analyst views remain mixed. Some large investors added CME shares while others reduced positions. Price targets also vary widely, indicating uncertainty over valuation despite continued expectations for strong profitability.
• Negative Sentiment: Director selling is a modest cautionary signal. Director Elizabeth Cook sold 500 shares for approximately $140,055, reducing her stake by about 2.7%. The transaction is small relative to her remaining holdings, but recent insider activity has featured more sales than purchases. CME insider sale SEC filing

Analyst Ratings Changes

CME has been the subject of a number of research reports. Rothschild & Co Redburn upgraded CME Group from a "neutral" rating to a "buy" rating and increased their target price for the stock from $316.00 to $323.00 in a report on Thursday, June 11th. Weiss Ratings lowered CME Group from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, August 11th. Piper Sandler reduced their price objective on CME Group from $329.00 to $295.00 and set an "overweight" rating for the company in a research report on Wednesday, July 15th. Bank of America upped their price objective on CME Group from $226.00 to $230.00 and gave the stock an "underperform" rating in a research report on Thursday, July 23rd. Finally, Barclays decreased their price objective on CME Group from $316.00 to $270.00 and set an "equal weight" rating for the company in a report on Thursday, July 9th. Nine research 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. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $289.75.

CME Group Stock Down 1.9%

CME stock opened at $275.09 on Wednesday. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.13. The business has a 50 day moving average price of $265.16 and a two-hundred day moving average price of $276.66. The company has a market cap of $98.92 billion, a price-to-earnings ratio of 23.33, a P/E/G ratio of 3.31 and a beta of 0.24. CME Group Inc. has a twelve month low of $218.31 and a twelve month high of $329.16.

CME Group (NASDAQ:CME - Get Free Report) last issued 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 analysts' expectations of $1.68 billion. During the same period in the prior year, the firm earned $2.96 EPS. CME Group's quarterly revenue was up .8% compared to the same quarter last year. Analysts anticipate that CME Group Inc. will post 12.27 EPS for the current fiscal year.

CME Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Wednesday, September 9th will be given a $1.30 dividend. This represents a $5.20 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Wednesday, September 9th. CME Group's payout ratio is presently 44.11%.

CME Group 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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