Bank of New York Mellon Corp Acquires New Shares in CME Group Inc. $CME

Key Points

• Bank of New York Mellon acquired 3.93 million CME Group shares worth approximately $867.3 million, giving it a 1.09% stake. Institutional investors collectively own 87.75% of the company.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $288.56. Recent actions included downgrades from Wall Street Zen, Barclays, Bank of America and Goldman Sachs, offset by Rothschild & Co. Redburn’s upgrade to “Buy.”
• CME Group exceeded quarterly earnings expectations, reporting $2.99 in EPS and $1.71 billion in revenue. The company also declared a $1.30 quarterly dividend, equivalent to $5.20 annually and a 1.9% yield.

Bank of New York Mellon Corp purchased a new stake in shares of CME Group Inc. (NASDAQ:CME - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 3,927,516 shares of the financial services provider's stock, valued at approximately $867,313,000. Bank of New York Mellon Corp owned approximately 1.09% of CME Group at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Whipplewood Advisors LLC grew 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 acquiring an additional 83 shares during the last quarter. Elkhorn Partners Limited Partnership bought a new position in CME Group during the 4th quarter worth $27,000. Hilton Head Capital Partners LLC bought a new position in CME Group during the 4th quarter worth $28,000. Legacy Wealth Managment LLC ID lifted its holdings in CME Group by 191.9% during the 4th quarter. Legacy Wealth Managment LLC ID now owns 108 shares of the financial services provider's stock worth $29,000 after buying an additional 71 shares during the period. Finally, Anfield Capital Management LLC lifted its holdings in CME Group by 197.4% during the 4th quarter. Anfield Capital Management LLC now owns 113 shares of the financial services provider's stock worth $31,000 after buying an additional 75 shares during the period. 87.75% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

CME has been the subject of a number of recent analyst reports. Wall Street Zen downgraded shares of CME Group from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 1st. Barclays dropped their price target on shares of CME Group from $316.00 to $270.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 9th. Bank of America upped their price objective on shares of CME Group from $226.00 to $230.00 and gave the company an "underperform" rating in a research note on Thursday, July 23rd. The Goldman Sachs Group lowered 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. Finally, Rothschild & Co Redburn raised shares of CME Group from a "neutral" rating to a "buy" rating and upped their price target for the company from $316.00 to $323.00 in a research report on Thursday, June 11th. Nine investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, CME Group has a consensus rating of "Hold" and an average target price of $288.56.

Insiders Place Their Bets

In other news, Director William R. Shepard purchased 325 shares of the company's stock in a transaction that occurred on Thursday, June 25th. The shares were acquired at an average cost of $230.57 per share, with a total value of $74,935.25. Following the purchase, the director owned 260,442 shares in the company, valued at $60,050,111.94. This represents a 0.12% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.30% of the company's stock.

CME Group Trading Up 1.5%

NASDAQ:CME opened at $270.87 on Friday. CME Group Inc. has a 12 month low of $218.31 and a 12 month high of $329.16. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $97.40 billion, a price-to-earnings ratio of 22.97, a PEG ratio of 3.11 and a beta of 0.23. The firm has a fifty day simple moving average of $251.06 and a two-hundred day simple moving average of $279.68.

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

CME Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors 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 yield of 1.9%. The ex-dividend date of this dividend is Wednesday, September 9th. CME Group's payout ratio is presently 44.11%.

About CME Group

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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