MarketAxess Holdings Inc. (NASDAQ:MKTX) Plans Quarterly Dividend of $0.78

Key Points

• MarketAxess declared a quarterly dividend of $0.78 per share, payable September 2 to shareholders of record August 19. The annualized dividend is $3.12, representing a 1.9% yield and a payout ratio of 36.7%.
• The company reported quarterly EPS of $1.95, exceeding analysts’ $1.86 estimate, while revenue declined 0.5% year over year. Analysts expect about $8.70 in EPS next year, supporting continued dividend coverage.
• MarketAxess shares rose 29.5% to $162.76, but analyst sentiment remains cautious: the stock carries an average “Hold” rating and a consensus price target of $163.18.

MarketAxess Holdings Inc. (NASDAQ:MKTX - Get Free Report) announced a quarterly dividend on Thursday, July 30th. Stockholders of record on Wednesday, August 19th will be given a dividend of 0.78 per share by the financial services provider on Wednesday, September 2nd. This represents a c) dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Wednesday, August 19th.

MarketAxess has raised its dividend payment by an average of 0.0%annually over the last three years and has raised its dividend annually for the last 2 consecutive years. MarketAxess has a dividend payout ratio of 36.7% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect MarketAxess to earn $8.70 per share next year, which means the company should continue to be able to cover its $3.12 annual dividend with an expected future payout ratio of 35.9%.

MarketAxess Stock Up 29.5%

Shares of NASDAQ MKTX traded up $37.03 during mid-day trading on Thursday, hitting $162.76. The company had a trading volume of 9,443,372 shares, compared to its average volume of 649,743. The company has a market capitalization of $5.78 billion, a PE ratio of 19.24, a price-to-earnings-growth ratio of 3.28 and a beta of 0.88. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.17 and a quick ratio of 2.17. MarketAxess has a 1-year low of $108.75 and a 1-year high of $210.05. The business's 50-day simple moving average is $119.45 and its 200 day simple moving average is $151.77.

MarketAxess (NASDAQ:MKTX - Get Free Report) last released its earnings results on Thursday, July 30th. The financial services provider reported $1.95 EPS for the quarter, topping the consensus estimate of $1.86 by $0.09. MarketAxess had a return on equity of 22.28% and a net margin of 35.53%.During the same quarter in the previous year, the business posted $2.00 earnings per share. MarketAxess's revenue was down .5% on a year-over-year basis. On average, analysts predict that MarketAxess will post 8.01 earnings per share for the current year.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. Rothschild & Co Redburn reiterated a "neutral" rating and issued a $134.00 price objective (down from $189.00) on shares of MarketAxess in a research note on Thursday, June 11th. UBS Group reduced their target price on shares of MarketAxess from $215.00 to $200.00 and set a "buy" rating on the stock in a report on Wednesday, July 8th. Keefe, Bruyette & Woods initiated coverage on shares of MarketAxess in a research note on Wednesday, April 8th. They issued an "outperform" rating and a $195.00 price target for the company. Piper Sandler lowered their price target on shares of MarketAxess from $175.00 to $128.00 and set a "neutral" rating for the company in a report on Wednesday, July 15th. Finally, William Blair downgraded shares of MarketAxess from an "outperform" rating to a "market perform" rating in a research report on Thursday. Three research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $163.18.

MarketAxess Company Profile

MarketAxess Holdings Inc operates a leading global electronic trading platform specializing in fixed-income securities and related products. The company's network enables institutional investors and broker-dealers to trade corporate bonds, municipal securities, emerging markets debt, U.S. Treasuries and credit default swaps in an automated, multi-dealer environment. MarketAxess also offers portfolio trading, data analytics, best-execution tools and post-trade services to streamline workflows and enhance price discovery across its marketplace.

In addition to core voice-like trading protocols, MarketAxess provides Open Trading®, an anonymous, all-to-all trading protocol designed to improve liquidity and transaction efficiency.

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