Nasdaq (NASDAQ:NDAQ) Sets New 1-Year High - Time to Buy?

Key Points

• Nasdaq shares hit a 52-week high, reaching $108.90 and trading about 1.4% higher during Wednesday’s session.
• Quarterly results beat expectations: earnings were $1.04 per share versus $1.02 expected, while revenue rose 12.6% year over year to $2.39 billion.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $113.53; Nasdaq also announced a quarterly dividend of $0.31 per share.

Nasdaq, Inc. (NASDAQ:NDAQ - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Wednesday. The stock traded as high as $108.90 and last traded at $108.2720, with a volume of 7,532 shares changing hands. The stock had previously closed at $106.97.

Wall Street Analyst Weigh In

NDAQ has been the subject of several research reports. Zacks Research downgraded shares of Nasdaq from a "strong-buy" rating to a "hold" rating in a report on Monday, September 21st. Erste Group Bank assumed coverage on Nasdaq in a report on Friday, October 30th. They issued a "buy" rating on the stock. Rothschild & Co Redburn decreased their target price on Nasdaq from $110.00 to $107.00 and set a "buy" rating on the stock in a research report on Thursday, September 10th. Argus boosted their target price on Nasdaq from $103.00 to $111.00 in a research report on Wednesday, August 5th. Finally, Bank of America dropped their price target on Nasdaq from $135.00 to $132.00 and set a "buy" rating for the company in a research note on Friday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, Nasdaq presently has an average rating of "Moderate Buy" and a consensus price target of $113.53.

Nasdaq Trading Up 1.4%

The company has a market cap of $60.17 billion, a PE ratio of 29.65, a price-to-earnings-growth ratio of 1.91 and a beta of 0.95. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.00 and a quick ratio of 1.00. The company has a 50-day moving average of $96.08 and a 200 day moving average of $90.77.

Nasdaq (NASDAQ:NDAQ - Get Free Report) last issued its quarterly earnings data on Thursday, October 22nd. The financial services provider reported $1.04 earnings per share for the quarter, topping the consensus estimate of $1.02 by $0.02. Nasdaq had a return on equity of 19.03% and a net margin of 22.81%. The company had revenue of $2.39 billion for the quarter, compared to analysts' expectations of $1.47 billion. During the same period in the previous year, the firm posted $0.88 earnings per share. The firm's revenue for the quarter was up 12.6% on a year-over-year basis. Analysts predict that Nasdaq, Inc. will post 4.15 earnings per share for the current year.

Nasdaq Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Stockholders of record on Friday, December 4th will be issued a $0.31 dividend. This represents a $1.24 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Friday, December 4th. Nasdaq's dividend payout ratio (DPR) is 33.88%.

Insider Buying and Selling

In other news, EVP Bradley Peterson sold 4,000 shares of the stock in a transaction that occurred on Friday, October 23rd. The stock was sold at an average price of $103.38, for a total value of $413,520.00. Following the sale, the executive vice president directly owned 118,293 shares in the company, valued at approximately $12,229,130.34. This represents a 3.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Tal Cohen sold 10,390 shares of the firm's stock in a transaction that occurred on Friday, October 23rd. The stock was sold at an average price of $103.34, for a total value of $1,073,702.60. Following the sale, the insider directly owned 205,076 shares of the company's stock, valued at $21,192,553.84. This represents a 4.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 22,877 shares of company stock valued at $2,330,505. Company insiders own 0.60% of the company's stock.

Institutional Trading of Nasdaq

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in shares of Nasdaq during the 2nd quarter worth approximately $2,931,637,000. Bank of America Corp DE purchased a new position in shares of Nasdaq during the 2nd quarter valued at approximately $603,631,000. The Manufacturers Life Insurance Company acquired a new stake in Nasdaq in the 2nd quarter valued at $377,818,000. Legal & General Group Plc acquired a new stake in Nasdaq in the 2nd quarter valued at $220,130,000. Finally, Deutsche Bank AG acquired a new position in Nasdaq during the second quarter worth $180,099,000. Hedge funds and other institutional investors own 72.47% of the company's stock.

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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