Nasdaq (NASDAQ:NDAQ) Reaches New 12-Month High - Should You Buy?

Key Points

• Nasdaq shares reached a new 52-week high of $105.55, supported by strong recent performance and earnings growth. The company reported quarterly EPS of $1.04, beating estimates, while revenue rose 12.6% year over year.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $113.53, implying further upside from the reported trading level.
• Nasdaq declared a quarterly dividend of $0.31 per share, or $1.24 annualized, yielding approximately 1.2%. However, insiders sold 18,890 shares worth about $1.9 million over the past 90 days.

Nasdaq, Inc. (NASDAQ:NDAQ - Get Free Report) reached a new 52-week high during trading on Wednesday. The company traded as high as $105.55 and last traded at $105.0580, with a volume of 873,977 shares traded. The stock had previously closed at $104.36.

Wall Street Analysts Forecast Growth

NDAQ has been the subject of several research analyst reports. The Goldman Sachs Group boosted their price objective on Nasdaq from $109.00 to $120.00 and gave the company a "buy" rating in a research report on Friday, October 23rd. Keefe, Bruyette & Woods raised their target price on shares of Nasdaq from $92.00 to $102.00 and gave the stock a "market perform" rating in a report on Friday, July 24th. Rothschild & Co Redburn cut their price target on shares of Nasdaq from $110.00 to $107.00 and set a "buy" rating on the stock in a research note on Thursday, September 10th. Zacks Research cut shares of Nasdaq from a "strong-buy" rating to a "hold" rating in a report on Monday, September 21st. Finally, JPMorgan Chase & Co. increased their price objective on shares of Nasdaq from $120.00 to $122.00 and gave the stock an "overweight" rating in a research report on Friday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, Nasdaq has a consensus rating of "Moderate Buy" and an average target price of $113.53.

Nasdaq Price Performance

The stock has a market cap of $58.43 billion, a price-to-earnings ratio of 28.77, a P/E/G ratio of 1.84 and a beta of 0.99. The company has a 50 day simple moving average of $95.17 and a 200-day simple moving average of $90.58. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.71.

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 (EPS) for the quarter, beating analysts' consensus estimates of $1.02 by $0.02. The business had revenue of $2.39 billion for the quarter, compared to analyst estimates of $1.47 billion. Nasdaq had a return on equity of 19.03% and a net margin of 22.81%. Nasdaq's revenue for the quarter was up 12.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.88 EPS. Research analysts expect that Nasdaq, Inc. will post 4.15 EPS for the current year.

Nasdaq Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 18th. Stockholders of record on Friday, December 4th will be paid a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, December 4th. Nasdaq's dividend payout ratio (DPR) is currently 33.88%.

Insider Activity

In related news, EVP Bradley Peterson sold 4,000 shares of the firm's stock in a transaction on Friday, October 23rd. The shares were sold at an average price of $103.38, for a total value of $413,520.00. Following the completion of the transaction, the executive vice president owned 118,293 shares of the company's stock, valued at approximately $12,229,130.34. This trade represents a 3.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Tal Cohen sold 10,390 shares of the firm's stock in a transaction on Friday, October 23rd. The shares were sold at an average price of $103.34, for a total transaction of $1,073,702.60. Following the completion of the transaction, the insider directly owned 205,076 shares of the company's stock, valued at approximately $21,192,553.84. This trade represents a 4.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 18,890 shares of company stock worth $1,912,866 over the last ninety days. Insiders own 0.60% of the company's stock.

Institutional Investors Weigh In On Nasdaq

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Parcion Private Wealth LLC bought a new position in Nasdaq in the third quarter valued at approximately $273,000. Partners Wealth Management LLC acquired a new stake in shares of Nasdaq in the 3rd quarter valued at approximately $552,000. Soltis Investment Advisors LLC acquired a new stake in shares of Nasdaq in the 3rd quarter valued at approximately $255,000. Choreo LLC grew its stake in shares of Nasdaq by 69.1% in the third quarter. Choreo LLC now owns 15,614 shares of the financial services provider's stock valued at $1,437,000 after buying an additional 6,378 shares in the last quarter. Finally, D.A. Davidson & CO. grew its stake in shares of Nasdaq by 3.6% in the third quarter. D.A. Davidson & CO. now owns 48,626 shares of the financial services provider's stock valued at $4,474,000 after buying an additional 1,712 shares in the last quarter. 72.47% of the stock is owned by institutional investors.

About Nasdaq

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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