Marathon Asset Management Ltd Decreases Stock Position in CME Group Inc. $CME

Key Points

• Marathon Asset Management reduced its CME Group stake by 9.1% in the fourth quarter, selling 10,532 shares and ending with 105,672 shares worth about $28.9 million.
• CME Group reported stronger-than-expected first-quarter results, with EPS of $3.36 versus $3.11 expected and revenue of $1.88 billion, up 14.5% year over year.
• The company also announced a quarterly dividend of $1.30 per share, payable June 25, while insider selling and a mixed analyst backdrop keep sentiment somewhat cautious.

Marathon Asset Management Ltd cut its stake in CME Group Inc. (NASDAQ:CME - Free Report) by 9.1% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 105,672 shares of the financial services provider's stock after selling 10,532 shares during the period. Marathon Asset Management Ltd's holdings in CME Group were worth $28,857,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Vanguard Group Inc. boosted its holdings in CME Group by 1.7% in the fourth quarter. Vanguard Group Inc. now owns 35,895,583 shares of the financial services provider's stock valued at $9,802,366,000 after purchasing an additional 588,509 shares during the period. Ameriprise Financial Inc. boosted its holdings in CME Group by 2.8% in the third quarter. Ameriprise Financial Inc. now owns 4,812,914 shares of the financial services provider's stock valued at $1,300,450,000 after purchasing an additional 130,848 shares during the period. Sanders Capital LLC purchased a new position in CME Group in the third quarter valued at $1,006,932,000. Franklin Resources Inc. boosted its holdings in CME Group by 0.6% in the third quarter. Franklin Resources Inc. now owns 3,381,133 shares of the financial services provider's stock valued at $913,548,000 after purchasing an additional 20,213 shares during the period. Finally, Invesco Ltd. boosted its holdings in CME Group by 23.0% in the third quarter. Invesco Ltd. now owns 2,830,323 shares of the financial services provider's stock valued at $764,725,000 after purchasing an additional 528,358 shares during the period. 87.75% of the stock is currently owned by hedge funds and other institutional investors.

CME Group Stock Performance

NASDAQ CME opened at $302.37 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. CME Group Inc. has a 52-week low of $257.17 and a 52-week high of $329.16. The business's 50-day moving average price is $297.54 and its 200 day moving average price is $288.74. The firm has a market cap of $109.57 billion, a P/E ratio of 25.80, a P/E/G ratio of 3.69 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 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.11 by $0.25. CME Group had a return on equity of 15.42% and a net margin of 63.19%.The firm had revenue of $1.88 billion for the quarter, compared to analyst estimates of $1.77 billion. During the same quarter last year, the company posted $2.80 earnings per share. The business's revenue was up 14.5% on a year-over-year basis. On average, equities research analysts expect that CME Group Inc. will post 12.26 earnings per share for the current year.

CME Group Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Tuesday, June 9th will be issued a dividend of $1.30 per share. The ex-dividend date of this dividend is Tuesday, June 9th. This represents a $5.20 dividend on an annualized basis and a dividend yield of 1.7%. CME Group's dividend payout ratio (DPR) is currently 44.37%.

CME Group News Summary

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

• Positive Sentiment: CME continues to benefit from solid fundamentals, including a recent earnings beat with stronger-than-expected revenue and EPS, plus a healthy dividend that supports shareholder returns.
• Positive Sentiment: New activity in CME-linked derivatives products, including growing interest in interest-rate and crypto-related futures, suggests the exchange remains well positioned to capture trading volume and product demand.
• Neutral Sentiment: Market commentary also noted CME as an alternative for investors concerned about correlation risk, which reflects the company’s role as a defensive financial market infrastructure name.
• Neutral Sentiment: The company adjourned voting on Class B proposals after a quorum shortfall at its 2026 annual meeting, a procedural issue that is unlikely to change the business outlook but may keep some attention on governance matters. Article Title
• Negative Sentiment: CEO Terrence Duffy sold 35,000 shares and insider Hilda Harris Piell sold 5,753 shares, which can weigh on sentiment because investors often view insider selling as a cautious signal. Article Title

Insider Activity

In related news, insider Hilda Harris Piell sold 5,753 shares of the firm's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $304.63, for a total transaction of $1,752,536.39. Following the transaction, the insider owned 27,702 shares of the company's stock, valued at $8,438,860.26. This trade represents a 17.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, General Counsel Jonathan L. Marcus sold 3,291 shares of the firm's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $333.37, for a total value of $1,097,120.67. Following the transaction, the general counsel directly owned 7,192 shares in the company, valued at approximately $2,397,597.04. This represents a 31.39% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 48,544 shares of company stock valued at $14,689,807. Insiders own 0.30% of the company's stock.

Analyst Upgrades and Downgrades

CME has been the subject of a number of recent research reports. Weiss Ratings upgraded CME Group from a "buy (b+)" rating to a "buy (a-)" rating in a report on Monday, March 2nd. UBS Group reiterated a "neutral" rating and issued a $310.00 target price on shares of CME Group in a report on Friday, February 6th. The Goldman Sachs Group cut their price target on CME Group from $275.00 to $267.00 and set a "sell" rating on the stock in a research note on Thursday, April 23rd. JPMorgan Chase & Co. raised their price target on CME Group from $266.00 to $271.00 and gave the company an "underweight" rating in a research note on Thursday, April 16th. Finally, Wall Street Zen cut CME Group from a "hold" rating to a "sell" rating in a research note on Sunday, April 26th. Two research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $305.29.

CME Group Company 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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