Cetera Investment Advisers Boosts Holdings in CME Group Inc. $CME

Key Points

• Cetera Investment Advisers increased its CME Group stake by 21% in the first quarter, bringing its holdings to 98,770 shares valued at approximately $29.2 million. Institutional investors collectively own 87.75% of the company.
• CME Group reported quarterly earnings of $2.99 per share, exceeding the $2.91 analyst estimate, while revenue of $1.71 billion also topped expectations. The company declared a $1.30 quarterly dividend, representing a 2.0% yield.
• Analyst sentiment remains mixed: CME has an overall “Hold” consensus and an average price target of $291.81 versus a share price of about $255.31, with some firms bullish and others maintaining underweight or cautious views.

Cetera Investment Advisers grew its stake in CME Group Inc. (NASDAQ:CME - Free Report) by 21.0% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 98,770 shares of the financial services provider's stock after purchasing an additional 17,164 shares during the quarter. Cetera Investment Advisers' holdings in CME Group were worth $29,172,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of the stock. Empowered Funds LLC raised its position in shares of CME Group by 11.5% during the 1st 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 during the last quarter. Marshall Wace LLP boosted its holdings 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 worth $1,018,000 after buying an additional 121,707 shares during the last quarter. Federated Hermes Inc. boosted its holdings 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 worth $6,497,000 after buying an additional 21,918 shares during the last quarter. Nebula Research & Development LLC acquired a new stake in CME Group in the 2nd quarter worth about $992,000. Finally, The Manufacturers Life Insurance Company increased its stake in CME Group by 2.6% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 287,876 shares of the financial services provider's stock worth $79,344,000 after buying an additional 7,397 shares in the last quarter. Hedge funds and other institutional investors own 87.75% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. Raymond James Financial reissued an "outperform" rating and set a $320.00 target price on shares of CME Group in a report on Thursday, July 2nd. UBS Group lowered their price target on CME Group from $310.00 to $260.00 and set a "buy" rating on the stock in a research note on Monday, July 6th. Weiss Ratings cut CME Group from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, July 13th. 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 note on Wednesday, July 15th. Finally, JPMorgan Chase & Co. increased their price objective on CME Group from $249.00 to $250.00 and gave the company an "underweight" rating in a research note on Thursday. Eleven investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, CME Group presently has an average rating of "Hold" and a consensus target price of $291.81.

CME Group Stock Performance

Shares of CME Group stock opened at $255.31 on Monday. CME Group Inc. has a one year low of $218.31 and a one year high of $329.16. The company has a market cap of $92.51 billion, a price-to-earnings ratio of 21.65, a PEG ratio of 2.98 and a beta of 0.25. 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 business's 50 day moving average price is $254.13 and its 200 day moving average price is $281.27.

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

CME Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Tuesday, June 9th were given a dividend of $1.30 per share. The ex-dividend date of this dividend was Tuesday, June 9th. This represents a $5.20 annualized dividend and a dividend yield of 2.0%. CME Group's payout ratio is presently 44.11%.

CME Group News Roundup

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

• Positive Sentiment: CME Group’s Q2 results topped expectations, and the stock was reported higher on the earnings beat. US Stock Market: CME shares jump 6% after Q2 profit beats estimates; strong hedging demand boosts results
• Positive Sentiment: Analysts noted strong fundamentals and at least one rating upgrade following the earnings release, which can support investor confidence. CME Group: Q2 Earnings Results Lead To A Rating Upgrade
• Neutral Sentiment: UBS reiterated a Hold rating and kept its $260 target, signaling solid fundamentals but limited upside at current valuation. Neutral Stance Reiterated on CME as Solid Fundamentals Meet Valuation Limits; $260 Price Target Maintained
• Negative Sentiment: Bank of America and JPMorgan both maintained bearish/underweight views, even though they slightly raised price targets, highlighting ongoing caution about upside. Analyst price target updates
• Negative Sentiment: Short-interest data showed no meaningful short position, so this headline is unlikely to be a real stock driver and does not change the core thesis.

Insider Activity

In other CME Group news, insider Hilda Harris Piell sold 5,753 shares of CME Group stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $304.63, for a total transaction of $1,752,536.39. Following the transaction, the insider directly owned 27,702 shares of the company's stock, valued at $8,438,860.26. The trade was a 17.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, 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 cost of $230.57 per share, for a total transaction of $74,935.25. Following the completion of the purchase, the director directly owned 260,442 shares of the company's stock, valued at $60,050,111.94. This trade represents a 0.12% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 0.30% of the company's stock.

CME Group 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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