Summit Global Investments Takes Position in CME Group Inc. $CME

Key Points

• Summit Global Investments acquired 10,145 CME Group shares worth approximately $2.24 million in the second quarter, while institutional investors collectively own 87.75% of the stock.
• CME Group exceeded quarterly earnings expectations, reporting $2.99 in EPS on $1.71 billion in revenue, with revenue up 0.8% year over year and a 63.3% net margin.
• The company declared a quarterly dividend of $1.30 per share, or $5.20 annually, representing a 1.9% yield; analysts’ consensus rating is “Hold” with a $291.81 price target.

Summit Global Investments purchased a new stake in CME Group Inc. (NASDAQ:CME - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 10,145 shares of the financial services provider's stock, valued at approximately $2,240,000.

Several other institutional investors have also made changes to their positions in CME. Empowered Funds LLC grew its holdings 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 in the last quarter. Marshall Wace LLP raised its stake 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 purchasing an additional 121,707 shares in the last quarter. Federated Hermes Inc. raised its stake 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 purchasing an additional 21,918 shares in the last quarter. Nebula Research & Development LLC bought a new stake in CME Group during the second quarter worth about $992,000. Finally, The Manufacturers Life Insurance Company lifted its position in CME Group by 2.6% during the second quarter. The Manufacturers Life Insurance Company now owns 287,876 shares of the financial services provider's stock worth $79,344,000 after purchasing an additional 7,397 shares during the period. 87.75% of the stock is currently owned by institutional investors.

CME Group Stock Performance

CME Group stock opened at $269.80 on Friday. CME Group Inc. has a 12-month low of $218.31 and a 12-month high of $329.16. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.13. The business's 50-day moving average price is $250.20 and its two-hundred day moving average price is $280.22. The stock has a market cap of $97.01 billion, a PE ratio of 22.88, a P/E/G ratio of 3.11 and a beta of 0.23.

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

CME Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Wednesday, September 9th will be given a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Wednesday, September 9th. CME Group's dividend payout ratio is currently 44.11%.

Insider Buying and Selling

In related news, Director William R. Shepard bought 325 shares of the business's stock in a transaction on Thursday, June 25th. The shares were purchased at an average price of $230.57 per share, for a total transaction of $74,935.25. Following the completion of the transaction, the director directly owned 260,442 shares of the company's stock, valued at approximately $60,050,111.94. This represents a 0.12% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, insider Hilda Harris Piell sold 5,753 shares of the business's stock in a transaction on 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 sale, the insider directly owned 27,702 shares in the company, valued at approximately $8,438,860.26. The trade was a 17.20% decrease in their position. The SEC filing for this sale provides additional information. 0.30% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on CME. Piper Sandler reduced their price objective on shares of CME Group from $329.00 to $295.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 15th. Wall Street Zen downgraded shares of CME Group from a "sell" rating to a "strong sell" rating in a report on Saturday, August 1st. Keefe, Bruyette & Woods raised shares of CME Group from a "market perform" rating to an "outperform" rating and set a $305.00 price target for the company in a report on Thursday, June 18th. Erste Group Bank lowered shares of CME Group from a "buy" rating to a "hold" rating in a research report on Friday, June 5th. Finally, Raymond James Financial reissued an "outperform" rating and issued a $320.00 price objective on shares of CME Group in a research note on Thursday, July 2nd. Ten investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, CME Group presently has an average rating of "Hold" and a consensus price target of $291.81.

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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