Principal Financial Group Inc. Acquires 42,487 Shares of CME Group Inc. $CME

Key Points

• Principal Financial Group increased its stake in CME by 10.4% in Q4, buying 42,487 shares to hold 452,840 shares (about 0.13%) valued at roughly $123.66 million.
• CME beat estimates on April 22 with EPS of $3.36 vs. $3.11 and revenue of $1.88B (up 14.5% YoY), and raised its quarterly dividend to $1.30 (annualized $5.20, ~1.8% yield).
• CME is expanding product offerings—launching Avalanche and Sui futures, introducing the RFR USD benchmark, and planning CFTC‑regulated Bitcoin Volatility futures (June 1 pending review)—while analysts hold a Moderate Buy consensus with a $305.29 price target.

Principal Financial Group Inc. boosted its stake in shares of CME Group Inc. (NASDAQ:CME - Free Report) by 10.4% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 452,840 shares of the financial services provider's stock after acquiring an additional 42,487 shares during the quarter. Principal Financial Group Inc. owned approximately 0.13% of CME Group worth $123,662,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in CME. Caldwell Trust Co grew its stake in shares of CME Group by 116.3% during the third quarter. Caldwell Trust Co now owns 93 shares of the financial services provider's stock valued at $25,000 after purchasing an additional 50 shares during the last quarter. Asset Dedication LLC raised its position in CME Group by 64.9% in the 4th quarter. Asset Dedication LLC now owns 94 shares of the financial services provider's stock worth $26,000 after purchasing an additional 37 shares during the last quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA bought a new position in CME Group in the 3rd quarter worth approximately $27,000. FNY Investment Advisers LLC acquired a new position in CME Group during the 4th quarter worth $27,000. Finally, Corundum Trust Company INC acquired a new position in CME Group during the 3rd quarter worth $30,000. Institutional investors and hedge funds own 87.75% of the company's stock.

CME Group Trading Up 0.5%

NASDAQ:CME opened at $288.34 on Thursday. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.13. CME Group Inc. has a 1-year low of $257.17 and a 1-year high of $329.16. The firm has a market capitalization of $104.48 billion, a price-to-earnings ratio of 24.60, a PEG ratio of 3.47 and a beta of 0.23. The business's 50-day moving average price is $302.15 and its two-hundred day moving average price is $287.14.

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

CME Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Shareholders of record on Tuesday, March 10th were issued a $1.30 dividend. This represents a $5.20 annualized dividend and a yield of 1.8%. This is a boost from CME Group's previous quarterly dividend of $1.25. The ex-dividend date was Tuesday, March 10th. CME Group's dividend payout ratio (DPR) is 44.37%.

Wall Street Analyst Weigh In

Several research firms have recently commented on CME. TD Cowen lowered their target price on CME Group from $340.00 to $323.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. Morgan Stanley decreased their price target on CME Group from $362.00 to $353.00 and set an "overweight" rating on the stock in a report on Thursday, April 23rd. Piper Sandler lifted their price objective on CME Group from $313.00 to $329.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 15th. Barclays dropped their price objective on CME Group from $343.00 to $316.00 and set an "equal weight" rating for the company in a report on Thursday, April 23rd. Finally, Royal Bank Of Canada increased their price objective on shares of CME Group from $295.00 to $302.00 and gave the company a "sector perform" rating in a report on Thursday, February 5th. Two investment analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $305.29.

Key CME Group News

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

• Positive Sentiment: CME executed first trades in newly launched Avalanche (AVAX) and Sui (SUI) futures, showing immediate client uptake for additional crypto products and potential new fee streams. CME Group Announces First Trades of New Avalanche and Sui Cryptocurrency Futures
• Positive Sentiment: CME plans to launch CFTC‑regulated Bitcoin Volatility futures on June 1 (pending review), giving institutions an on‑shore tool to trade implied BTC volatility — a differentiated product that can attract options/volatility flow and increase non‑trade revenues. CME Group to Launch Bitcoin Volatility Futures Contracts
• Positive Sentiment: CME launched the U.S. dollar RepoFunds Rate benchmark (RFR USD), expanding market data and benchmark offerings that can generate subscription/licensing revenue and strengthen institutional ties. CME Group Launches New Benchmark to Track Overnight Funding Costs
• Positive Sentiment: Analysts and industry commentary highlight exchanges (including CME) as beneficiaries of rising crypto adoption, higher trading volumes, and diversification into data/technology services — supportive for longer‑term multiple expansion. 5 Stocks to Watch From the Prospering Securities & Exchanges Industry
• Neutral Sentiment: Crypto market moves (e.g., renewed Bitcoin strength) can lift CME volumes and open interest, indirectly supporting revenues — but the magnitude depends on sustained retail/institutional flow. Bitcoin (BTC) Surges to $81,300
• Negative Sentiment: Some headlines noted a short‑term dip in CME shares following the Bitcoin volatility futures announcement, reflecting profit‑taking and investor caution around new product execution and regulatory timing. CME Group (CME) Stock Dips Ahead of Bitcoin Volatility Futures Debut in June

Insider Activity

In other news, Director Martin J. Gepsman sold 300 shares of CME Group stock in a transaction on Friday, February 20th. The shares were sold at an average price of $305.90, for a total transaction of $91,770.00. Following the transaction, the director directly owned 24,999 shares of the company's stock, valued at $7,647,194.10. This trade represents a 1.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Bryan T. Durkin sold 4,200 shares of the business's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $309.65, for a total transaction of $1,300,530.00. Following the completion of the transaction, the director directly owned 43,007 shares of the company's stock, valued at $13,317,117.55. This trade represents a 8.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 8,539 shares of company stock valued at $2,713,821. 0.30% of the stock is currently owned by company insiders.

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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