MarketAxess Holdings Inc. (MKTX) Rating Lowered to Sell at Zacks Investment Research
MarketAxess Holdings Inc. (NASDAQ:MKTX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Thursday.
According to Zacks, “MarketAxess Holdings’ 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%. However, the company 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.”
Several other equities analysts have also issued reports on MKTX. Credit Suisse Group AG restated a “sell” rating on shares of MarketAxess Holdings in a research note on Tuesday, June 28th. Keefe, Bruyette & Woods boosted their price target on MarketAxess Holdings from $165.00 to $175.00 and gave the company an “outperform” rating in a research note on Friday, July 29th. Raymond James Financial Inc. lowered MarketAxess Holdings from an “outperform” rating to a “market perform” rating in a research note on Friday, July 15th. Citigroup Inc. lowered MarketAxess Holdings to a “market perform” rating in a research note on Friday, July 15th. They noted that the move was a valuation call. Finally, William Blair assumed coverage on MarketAxess Holdings in a research note on Monday, June 20th. They set a “market perform” rating on the stock. Three investment analysts have rated the stock with a sell rating, three have given a hold rating and one has issued a buy rating to the stock. MarketAxess Holdings currently has an average rating of “Hold” and an average price target of $140.75.
Shares of MarketAxess Holdings (NASDAQ:MKTX) opened at 160.39 on Thursday. The company has a 50-day moving average price of $168.49 and a 200 day moving average price of $146.52. MarketAxess Holdings has a 52-week low of $86.19 and a 52-week high of $178.21. The firm has a market capitalization of $6.03 billion, a PE ratio of 55.31 and a beta of 0.65.
MarketAxess Holdings (NASDAQ:MKTX) last posted its quarterly earnings data on Thursday, July 28th. The company reported $0.88 EPS for the quarter, topping analysts’ consensus estimates of $0.85 by $0.03. The business had revenue of $96.60 million for the quarter, compared to analyst estimates of $93.98 million. MarketAxess Holdings had a return on equity of 27.14% and a net margin of 32.52%. The firm’s revenue for the quarter was up 27.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.64 earnings per share. Analysts expect that MarketAxess Holdings will post $3.23 EPS for the current fiscal year.
In other news, CEO Richard M. Mcvey sold 30,000 shares of the business’s stock in a transaction that occurred on Monday, August 8th. The stock was sold at an average price of $162.33, for a total value of $4,869,900.00. Following the transaction, the chief executive officer now directly owns 1,091,457 shares of the company’s stock, valued at approximately $177,176,214.81. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Antonio L. Delise sold 10,000 shares of the business’s stock in a transaction that occurred on 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 completion of the transaction, the chief financial officer now directly owns 59,494 shares in the company, valued at $9,923,004.26. The disclosure for this sale can be found here. 4.51% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in MKTX. Aperio Group LLC increased its position in shares of MarketAxess Holdings by 8.7% in the first quarter. Aperio Group LLC now owns 13,884 shares of the company’s stock valued at $1,733,000 after buying an additional 1,111 shares during the last quarter. BlackRock Inc. increased its position in shares of MarketAxess Holdings by 9.2% in the first quarter. BlackRock Inc. now owns 14,541 shares of the company’s stock valued at $1,815,000 after buying an additional 1,230 shares during the last quarter. BlackRock Group LTD increased its position 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 valued at $3,517,000 after buying an additional 6,974 shares during the last quarter. BlackRock Institutional Trust Company N.A. increased its position in shares of MarketAxess Holdings by 0.3% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 1,089,927 shares of the company’s stock valued at $136,056,000 after buying an additional 3,269 shares during the last quarter. Finally, Columbia Partners L L C Investment Management increased its position in shares of MarketAxess Holdings by 10.0% in the first quarter. Columbia Partners L L C Investment Management now owns 14,702 shares of the company’s stock valued at $1,835,000 after buying an additional 1,331 shares during the last quarter. 92.37% of the stock is currently owned by institutional investors and hedge funds.
About MarketAxess Holdings
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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