CME Group Inc. $CME Shares Purchased by Alta Capital Management LLC

Key Points

• Alta Capital Management increased its stake in CME Group by 213.8% in the fourth quarter, buying 32,478 additional shares to bring its total holdings to 47,666 shares worth about $13.0 million.
• CME Group reported better-than-expected quarterly results, with EPS of $3.36 and revenue of $1.88 billion, both above analyst estimates. Revenue rose 14.5% year over year.
• The company also declared a quarterly dividend of $1.30 per share, equal to a $5.20 annualized payout and a 1.7% yield. Meanwhile, analysts currently rate the stock a “Moderate Buy” with an average price target of $305.29.

Alta Capital Management LLC lifted its position in shares of CME Group Inc. (NASDAQ:CME - Free Report) by 213.8% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 47,666 shares of the financial services provider's stock after purchasing an additional 32,478 shares during the period. CME Group comprises 0.9% of Alta Capital Management LLC's portfolio, making the stock its 27th largest position. Alta Capital Management LLC's holdings in CME Group were worth $13,017,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. Empowered Funds LLC grew its stake in CME Group by 11.5% during the 1st quarter. Empowered Funds LLC now owns 10,027 shares of the financial services provider's stock valued at $2,660,000 after purchasing an additional 1,037 shares in the last quarter. Marshall Wace LLP raised its holdings in CME Group by 103.1% in the second quarter. Marshall Wace LLP now owns 3,692 shares of the financial services provider's stock valued at $1,018,000 after acquiring an additional 121,707 shares in the last quarter. Federated Hermes Inc. raised its holdings in CME Group by 1,325.2% in the second 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 stake in CME Group in the second quarter valued at $992,000. Finally, The Manufacturers Life Insurance Company raised its holdings in CME Group by 2.6% in 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 in the last quarter. 87.75% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on CME. Morgan Stanley cut their price target on shares of CME Group from $362.00 to $353.00 and set an "overweight" rating on the stock in a report on Thursday, April 23rd. UBS Group reaffirmed a "neutral" rating and issued a $310.00 price target on shares of CME Group in a report on Friday, February 6th. TD Cowen cut their price target on shares of CME Group from $340.00 to $323.00 and set a "buy" rating on the stock in a report on Thursday, April 23rd. Erste Group Bank upgraded shares of CME Group from a "hold" rating to a "strong-buy" rating in a research note on Thursday, March 5th. Finally, Rothschild & Co Redburn lowered their target price on shares of CME Group from $340.00 to $316.00 and set a "neutral" rating for the company in a research note on Monday, April 27th. Two research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $305.29.

CME Group Stock Up 2.1%

CME stock opened at $305.12 on Tuesday. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.02 and a quick ratio of 1.02. CME Group Inc. has a 1-year low of $257.17 and a 1-year high of $329.16. The firm has a fifty day moving average price of $297.84 and a two-hundred day moving average price of $288.46. The firm has a market cap of $110.56 billion, a price-to-earnings ratio of 26.03, a PEG ratio of 3.61 and a beta of 0.23.

CME Group (NASDAQ:CME - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The financial services provider reported $3.36 EPS for the quarter, topping the consensus estimate of $3.11 by $0.25. The business had revenue of $1.88 billion during the quarter, compared to analyst estimates of $1.77 billion. CME Group had a net margin of 63.19% and a return on equity of 15.42%. The company's quarterly revenue was up 14.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.80 earnings per share. Research analysts predict that CME Group Inc. will post 12.26 EPS for the current year.

CME Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Tuesday, June 9th will be given a dividend of $1.30 per share. The ex-dividend date is Tuesday, June 9th. This represents a $5.20 annualized dividend and a dividend yield of 1.7%. CME Group's dividend payout ratio is currently 44.37%.

Insider Activity

In other news, Director Bryan T. Durkin sold 4,200 shares of the firm's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $309.65, for a total transaction of $1,300,530.00. Following the transaction, the director directly owned 43,007 shares of the company's stock, valued at approximately $13,317,117.55. This trade represents a 8.90% 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, General Counsel Jonathan L. Marcus sold 3,291 shares of CME Group stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $333.37, for a total transaction of $1,097,120.67. Following the sale, the general counsel owned 7,192 shares in the company, valued at approximately $2,397,597.04. This represents a 31.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 42,791 shares of company stock worth $12,937,271 over the last ninety days. Insiders own 0.30% of the company's stock.

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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