Nasdaq (NASDAQ:NDAQ) Stock Sees Unusually High Call Option Buying

Key Points

• Unusual options activity: Traders bought 7,716 Nasdaq call options, roughly 320% above the average daily volume of 1,839 contracts.
• Strong quarterly results: Nasdaq reported adjusted EPS of $1.04 versus $1.02 expected, while revenue rose 12.6% year over year to $2.39 billion and annualized recurring revenue reached a record $3.4 billion.
• Investor sentiment remains broadly positive: Institutional investors own 72.47% of the company, and analysts maintain a consensus “Moderate Buy” rating with an average price target of $112.06. Recent insider activity has been weighted toward modest selling.

Nasdaq, Inc. (NASDAQ:NDAQ - Get Free Report) was the target of some unusual options trading on Friday. Stock traders bought 7,716 call options on the company. This represents an increase of approximately 320% compared to the average daily volume of 1,839 call options.

Insider Activity

In other Nasdaq news, insider Nelson Griggs sold 11,010 shares of the firm's stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $96.35, for a total transaction of $1,060,813.50. Following the transaction, the insider owned 205,001 shares in the company, valued at approximately $19,751,846.35. This trade represents a 5.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Jeremy Skule sold 1,125 shares of the business's stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $95.00, for a total transaction of $106,875.00. Following the transaction, the executive vice president owned 96,561 shares of the company's stock, valued at approximately $9,173,295. This represents a 1.15% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 26,520 shares of company stock worth $2,520,957 in the last three months. Insiders own 0.60% of the company's stock.

Hedge Funds Weigh In On Nasdaq

Hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in Nasdaq in the second quarter valued at $2,931,637,000. Bank of America Corp DE purchased a new stake in shares of Nasdaq in the 2nd quarter valued at approximately $603,631,000. The Manufacturers Life Insurance Company acquired a new stake in shares of Nasdaq during the second quarter valued at about $377,818,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Nasdaq by 4.8% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,884,101 shares of the financial services provider's stock worth $306,145,000 after acquiring an additional 177,114 shares in the last quarter. Finally, Amundi increased its position in shares of Nasdaq by 19.6% during the first quarter. Amundi now owns 2,910,390 shares of the financial services provider's stock worth $247,063,000 after acquiring an additional 476,913 shares during the period. 72.47% of the stock is owned by hedge funds and other institutional investors.

Nasdaq News Roundup

Here are the key news stories impacting Nasdaq this week:

• Positive Sentiment: Q3 earnings and revenue beat expectations: Nasdaq reported adjusted EPS of $1.04, ahead of the $1.02 consensus and up from $0.88 a year earlier. Net revenue rose 13% year over year to approximately $1.5 billion, while total reported revenue was $2.39 billion. Nasdaq Q3 Results
• Positive Sentiment: Recurring revenue and growth businesses strengthened: Annualized recurring revenue reached a record $3.4 billion, solutions revenue increased 17% to about $1.2 billion, and index revenue jumped 39%. Management also cited double-digit growth in fintech and technology businesses, supporting confidence in future cash flow and margins. NDAQ Q3 Earnings Analysis
• Positive Sentiment: Analyst sentiment remains supportive: RBC Capital Markets initiated or reiterated a Buy view after the results, while Wells Fargo raised its price target from $100 to $111 but maintained an Equal Weight rating. The new target implies further upside from the referenced trading level. RBC Capital Markets Rating
• Neutral Sentiment: Quarterly dividend declared: Nasdaq maintained a $0.31-per-share quarterly dividend, payable December 18 to shareholders of record December 4. The dividend supports shareholder returns but was not announced as an increase. Nasdaq Dividend Announcement
• Negative Sentiment: Insider selling is a modest cautionary signal: EVP Jeremy Skule sold 1,125 shares for approximately $106,875, reducing his ownership by 1.15%. The transaction is small relative to his remaining stake, but broader recent insider activity has been weighted toward selling. SEC Insider Filing

Nasdaq Stock Up 0.0%

Shares of NDAQ traded up $0.04 during trading hours on Friday, hitting $103.34. The company had a trading volume of 1,307,873 shares, compared to its average volume of 3,775,271. The stock has a market capitalization of $57.76 billion, a price-to-earnings ratio of 30.17, a P/E/G ratio of 1.73 and a beta of 0.99. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.01 and a current ratio of 1.01. Nasdaq has a 52-week low of $76.55 and a 52-week high of $104.21. The firm has a fifty day moving average price of $94.75 and a 200-day moving average price of $90.97.

Nasdaq (NASDAQ:NDAQ - Get Free Report) last announced its earnings results on Thursday, October 22nd. The financial services provider reported $1.04 earnings per share for the quarter, beating analysts' consensus estimates of $1.02 by $0.02. Nasdaq had a net margin of 22.60% and a return on equity of 18.38%. The business had revenue of $2.39 billion during the quarter, compared to analyst estimates of $1.47 billion. During the same period in the previous year, the business earned $0.88 EPS. The company's quarterly revenue was up 12.6% compared to the same quarter last year. On average, equities research analysts forecast that Nasdaq will post 4.13 EPS for the current fiscal year.

Nasdaq Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 18th. Shareholders of record on Friday, December 4th will be given a $0.31 dividend. This represents a $1.24 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Friday, December 4th. Nasdaq's payout ratio is 36.15%.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on NDAQ shares. Argus increased their price target on shares of Nasdaq from $103.00 to $111.00 in a report on Wednesday, August 5th. Zacks Research downgraded shares of Nasdaq from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 21st. Rothschild & Co Redburn decreased their target price on Nasdaq from $110.00 to $107.00 and set a "buy" rating for the company in a research note on Thursday, September 10th. TD Cowen lowered their target price on shares of Nasdaq from $108.00 to $107.00 and set a "buy" rating for the company in a report on Monday, October 12th. Finally, Barclays set a $121.00 price objective on Nasdaq and gave the company an "overweight" rating in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $112.06.

Nasdaq Company Profile

Nasdaq, Inc is a global financial technology and market infrastructure company best known for operating the Nasdaq Stock Market, one of the world's largest electronic stock exchanges. The company provides listing services for public companies and operates trading venues for equities, options and other financial products. Its exchange business serves companies, investors and market participants in the United States, as well as through Nasdaq's Nordic and Baltic market operations.

Beyond its exchange activities, Nasdaq provides market data, analytics, indexes and technology used by exchanges, brokers, banks, asset managers and other financial institutions.

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