Zacks Investment Research Lowers Nasdaq Inc. (NDAQ) to Sell
Nasdaq Inc. (NASDAQ:NDAQ) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday.
According to Zacks, “Intense competition, currency fluctuations and pricing continue to weigh on Nasdaq’s performance. Also, the Zacks Consensus Estimate has been witnessing downward revisions, with the same dipping 0.5% for both 2016 and 2017, over the last 60 days. Nonetheless, Nasdaq remains focused on growth through acquisitions and organic initiatives that enable entry and cross-selling opportunities into new markets at a low-cost and highly-flexible platform. The company displays its prudence by accelerating its non-transaction revenue base, which includes technology, listing and information revenues. This has been fueling organic growth for the securities exchange. In fact, management projects consistent mid-single-digit organic growth over the next three to five years. Nasdaq is improving leverage that supports accelerated capital deployment, thereby boosting investor confidence.”
A number of other research firms have also commented on NDAQ. Deutsche Bank AG raised their price objective on shares of Nasdaq from $72.00 to $73.00 and gave the stock a “buy” rating in a research note on Monday, July 18th. Barclays PLC decreased their target price on shares of Nasdaq from $74.00 to $73.00 and set an “overweight” rating for the company in a research note on Thursday, July 7th. JPMorgan Chase & Co. lifted their target price on shares of Nasdaq from $64.00 to $69.00 and gave the company a “neutral” rating in a research note on Friday, July 29th. Credit Suisse Group AG reissued a “buy” rating and set a $68.00 target price on shares of Nasdaq in a research note on Wednesday, June 29th. Finally, Jefferies Group lifted their target price on shares of Nasdaq from $58.00 to $68.00 and gave the company a “hold” rating in a research note on Thursday, July 28th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and seven have given a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $69.67.
Nasdaq (NASDAQ:NDAQ) traded up 0.43% during trading on Wednesday, reaching $67.08. 327,493 shares of the company’s stock were exchanged. Nasdaq has a 1-year low of $52.75 and a 1-year high of $71.92. The company’s 50-day moving average is $69.77 and its 200-day moving average is $66.63. The company has a market capitalization of $11.10 billion, a PE ratio of 23.23 and a beta of 0.81.
Nasdaq (NASDAQ:NDAQ) last posted its quarterly earnings data on Wednesday, July 27th. The company reported $0.91 EPS for the quarter, topping analysts’ consensus estimates of $0.88 by $0.03. Nasdaq had a net margin of 13.79% and a return on equity of 10.76%. The firm earned $559 million during the quarter, compared to analyst estimates of $548 million. During the same quarter last year, the business posted $0.83 EPS. The company’s revenue was up 7.9% on a year-over-year basis. Equities research analysts expect that Nasdaq will post $3.71 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Friday, September 16th were issued a dividend of $0.32 per share. The ex-dividend date was Wednesday, September 14th. This represents a $1.28 annualized dividend and a dividend yield of 1.92%. Nasdaq’s payout ratio is 44.44%.
In other news, insider Pc Nelson Griggs sold 2,945 shares of the business’s stock in a transaction dated Thursday, August 4th. The shares were sold at an average price of $71.52, for a total transaction of $210,626.40. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Edward S. Knight sold 19,555 shares of the business’s stock in a transaction dated Tuesday, August 23rd. The stock was sold at an average price of $70.40, for a total transaction of $1,376,672.00. Following the transaction, the insider now owns 76,407 shares in the company, valued at approximately $5,379,052.80. The disclosure for this sale can be found here. Insiders own 2.20% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the company. JPMorgan Chase & Co. increased its position in Nasdaq by 162.5% in the second quarter. JPMorgan Chase & Co. now owns 1,456,325 shares of the company’s stock valued at $94,181,000 after buying an additional 901,623 shares during the last quarter. Nuveen Asset Management LLC increased its position in Nasdaq by 413.5% in the first quarter. Nuveen Asset Management LLC now owns 594,597 shares of the company’s stock valued at $39,469,000 after buying an additional 478,801 shares during the last quarter. Vanguard Group Inc. increased its position in Nasdaq by 4.0% in the second quarter. Vanguard Group Inc. now owns 10,535,832 shares of the company’s stock valued at $681,353,000 after buying an additional 407,297 shares during the last quarter. Legal & General Group Plc increased its position in Nasdaq by 265.8% in the first quarter. Legal & General Group Plc now owns 502,157 shares of the company’s stock valued at $33,327,000 after buying an additional 364,898 shares during the last quarter. Finally, Bank of Montreal Can bought a new position in Nasdaq during the second quarter valued at about $17,024,000. Institutional investors own 74.20% of the company’s stock.
Nasdaq, Inc (Nasdaq), formerly The NASDAQ OMX Group, Inc, is a holding company. The Company is a provider of trading, clearing, exchange technology, regulatory, securities listing, information and public company services across approximately six continents. The Company manages, operates and provides its products and services through four segments: Market Services, Listing Services, Information Services and Technology Solutions.
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