Engineers Gate Manager LP Makes New Investment in CME Group Inc. $CME

Key Points

• Engineers Gate Manager LP purchased 84,254 CME Group shares during the second quarter, worth approximately $18.6 million. Institutional investors collectively own 87.75% of CME’s outstanding stock.
• CME Group exceeded quarterly expectations, reporting $2.99 in EPS and $1.71 billion in revenue, while maintaining strong profitability with a 63.3% net margin.
• The company declared a quarterly dividend of $1.30 per share, equivalent to $5.20 annually and a 1.9% yield. Analysts have a consensus “Hold” rating and an average price target of $289.75.

Engineers Gate Manager LP bought a new position in shares of CME Group Inc. (NASDAQ:CME - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 84,254 shares of the financial services provider's stock, valued at approximately $18,606,000.

Several other institutional investors and hedge funds have also recently modified their holdings of CME. Whipplewood Advisors LLC raised its position 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 valued at $26,000 after purchasing an additional 83 shares in the last quarter. Elkhorn Partners Limited Partnership bought a new position in shares of CME Group during the 4th quarter worth $27,000. Hilton Head Capital Partners LLC purchased a new position in shares of CME Group during the fourth quarter valued at $28,000. Main Street Group LTD purchased a new position in shares of CME Group during the first quarter valued at $32,000. Finally, Bayban bought a new stake in shares of CME Group in the fourth quarter valued at about $31,000. Institutional investors own 87.75% of the company's stock.

Key CME Group News

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

• Positive Sentiment: Shareholder distribution: CME is scheduled to distribute approximately $467 million in dividends on September 25, reinforcing its appeal to income-oriented investors and highlighting the exchange operator’s strong cash-generation profile. CME Group's $467 Million Dividend: What Shareholders Collect Sept. 25
• Positive Sentiment: Product expansion: CME’s new single-stock futures offer investors leveraged and capital-efficient exposure to individual equities. The product broadens CME’s equity derivatives lineup and could create additional trading volume and fee revenue over time. CME's New Single Stock Futures: What Are The Advantages Vs. Stocks?
• Positive Sentiment: European market entry: CME plans to enter the European dairy market through a deal involving EEX, expanding its addressable market and potentially improving its international commodities presence. CME Group to enter European dairy market through EEX deal
• Neutral Sentiment: Leadership succession: CME named insider Jack Tobin as CFO, succeeding Lynne Fitzpatrick, who is expected to become CEO in March 2027. The planned internal transition may provide continuity, although investors could monitor execution during the leadership change. CME Group names Jack Tobin as CFO
• Neutral Sentiment: Interest-rate backdrop: Reports that Federal Reserve Chair Warsh favors rate hikes, while the Treasury considers buying longer-maturity debt, point to continued uncertainty over rates, inflation and bond-market conditions. These factors can affect CME’s interest-rate and fixed-income trading volumes. Fed and Treasury at Odds
• Negative Sentiment: Regulatory litigation: The Hyperliquid Policy Center filed an amicus brief urging dismissal of CME’s lawsuit against the CFTC. The development adds uncertainty to CME’s regulatory position and could weigh on sentiment surrounding its digital-asset and derivatives initiatives. Hyperliquid Policy Center Files Amicus Brief Urging Dismissal of CME’s Suit Against CFTC

Insider Activity

In other CME Group news, Director William Shepard acquired 325 shares of the firm's stock in a transaction dated Thursday, June 25th. The stock was purchased at an average price of $230.57 per share, for a total transaction of $74,935.25. Following the acquisition, the director owned 260,442 shares in the company, valued at approximately $60,050,111.94. This trade represents a 0.12% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.30% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on CME. Wall Street Zen raised shares of CME Group from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 29th. JPMorgan Chase & Co. boosted their price target on shares of CME Group from $249.00 to $250.00 and gave the company an "underweight" rating in a report on Thursday, July 23rd. Keefe, Bruyette & Woods upgraded shares of CME Group from a "market perform" rating to an "outperform" rating and set a $305.00 price objective on the stock in a research note on Thursday, June 18th. Barclays cut their price objective on shares of CME Group from $316.00 to $270.00 and set an "equal weight" rating on the stock in a report on Thursday, July 9th. Finally, Deutsche Bank Aktiengesellschaft downgraded shares of CME Group from a "buy" rating to a "hold" rating and reduced their price objective for the stock from $286.00 to $270.00 in a research note on Wednesday, August 19th. Nine equities 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 company's stock. Based on data from MarketBeat.com, CME Group presently has an average rating of "Hold" and a consensus price target of $289.75.

CME Group Stock Performance

CME stock opened at $274.70 on Thursday. CME Group Inc. has a one year low of $218.31 and a one year high of $329.16. The firm has a market cap of $98.78 billion, a price-to-earnings ratio of 23.30, a PEG ratio of 3.29 and a beta of 0.24. 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 firm has a 50-day simple moving average of $262.03 and a two-hundred day simple moving average of $277.67.

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

CME Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Wednesday, September 9th will be issued a $1.30 dividend. This represents a $5.20 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Wednesday, September 9th. CME Group's payout ratio is currently 44.11%.

About CME Group

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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