Zacks Investment Research Downgrades MarketAxess Holdings Inc. (MKTX) to Hold
MarketAxess Holdings Inc. (NASDAQ:MKTX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.
According to Zacks, “MarketAxess Holdings is poised to grow over the long term from a consistent increase in trading volumes, launch of new products and increasing client base. The acquisition of Xtracker, other alliances, continued growth in Europe should also support top-line growth. Further, MarketAxess enjoys strong liquidity and a steady capital position, which enables it to buy back shares and increase dividend from time to time. However, its expense management continues to raise concerns. Increase in employee compensation and benefits, along with other operating expenses, has drained the company's bottom line. Intense competition due to increased market consolidation and new entrants has reduced the company's market share. The company is expected to release third quarter earnings on Oct 19, 2016. The Zacks Consensus earning estimate for the quarter is pegged at $0.79 per share which translates into year over year growth rate of 31.7%.”
Several other research analysts have also recently weighed in on the company. William Blair started coverage on MarketAxess Holdings in a research report on Monday, June 20th. They set a “market perform” rating on the stock. Raymond James Financial Inc. cut MarketAxess Holdings from an “outperform” rating to a “market perform” rating in a research report on Friday, July 15th. Citigroup Inc. cut MarketAxess Holdings to a “market perform” rating in a research report on Friday, July 15th. They noted that the move was a valuation call. Keefe, Bruyette & Woods raised their price target on MarketAxess Holdings from $165.00 to $175.00 and gave the stock an “outperform” rating in a research report on Friday, July 29th. Finally, Credit Suisse Group AG restated a “sell” rating and issued a $106.00 price target on shares of MarketAxess Holdings in a research report on Friday, July 29th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating to the company. MarketAxess Holdings has a consensus rating of “Hold” and an average price target of $140.75.
Shares of MarketAxess Holdings (NASDAQ:MKTX) opened at 171.01 on Tuesday. MarketAxess Holdings has a 52 week low of $86.19 and a 52 week high of $178.21. The stock has a 50 day moving average of $168.34 and a 200-day moving average of $145.08. The firm has a market capitalization of $6.43 billion, a PE ratio of 58.97 and a beta of 0.76.
MarketAxess Holdings (NASDAQ:MKTX) last posted its quarterly earnings data on Thursday, July 28th. The company reported $0.88 earnings per share for the quarter, topping the consensus estimate of $0.85 by $0.03. The firm had revenue of $96.60 million for the quarter, compared to analysts’ expectations of $93.98 million. MarketAxess Holdings had a return on equity of 27.14% and a net margin of 32.52%. The company’s quarterly revenue was up 27.9% compared to the same quarter last year. During the same quarter last year, the business earned $0.64 EPS. Equities analysts anticipate that MarketAxess Holdings will post $3.23 earnings per share for the current fiscal year.
In other MarketAxess Holdings news, CFO Antonio L. Delise sold 10,000 shares of MarketAxess Holdings stock in a transaction dated Friday, August 19th. The stock was sold at an average price of $166.79, for a total value of $1,667,900.00. Following the transaction, the chief financial officer now owns 59,494 shares in the company, valued at $9,923,004.26. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Nicholas Themelis sold 6,200 shares of MarketAxess Holdings stock in a transaction dated Tuesday, August 23rd. The shares were sold at an average price of $165.40, for a total value of $1,025,480.00. Following the completion of the transaction, the insider now owns 70,799 shares in the company, valued at approximately $11,710,154.60. The disclosure for this sale can be found here. 4.51% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Aristotle Capital Boston LLC boosted its position in MarketAxess Holdings by 4.6% in the second quarter. Aristotle Capital Boston LLC now owns 25,861 shares of the company’s stock worth $3,760,000 after buying an additional 1,138 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of MarketAxess Holdings by 6.4% in the first quarter. Geode Capital Management LLC now owns 258,446 shares of the company’s stock worth $32,260,000 after buying an additional 15,645 shares during the last quarter. State Street Corp raised its stake in shares of MarketAxess Holdings by 2.8% in the first quarter. State Street Corp now owns 1,232,111 shares of the company’s stock worth $153,799,000 after buying an additional 33,815 shares during the last quarter. BlackRock Group LTD raised its stake in shares of MarketAxess Holdings by 32.9% in the first quarter. BlackRock Group LTD now owns 28,177 shares of the company’s stock worth $3,517,000 after buying an additional 6,974 shares during the last quarter. Finally, I.G. Investment Management LTD. raised its stake in shares of MarketAxess Holdings by 1.7% in the second quarter. I.G. Investment Management LTD. now owns 5,941 shares of the company’s stock worth $864,000 after buying an additional 98 shares during the last quarter. Hedge funds and other institutional investors own 92.37% of the company’s stock.
MarketAxess Holdings Company Profile
MarketAxess Holdings Inc (MarketAxess) is an electronic trading platform. The Company operates as an electronic multi-party platform for the trading of fixed-income securities and provides related data, analytics, compliance tools and post-trade services. The Company’s multi-dealer trading platform allows its institutional investor clients to request bids or offers from its broker-dealer clients and execute trades with the broker-dealer of their choice from among those that choose to respond.
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