Zacks Investment Research Upgrades CBOE Holdings Inc. (CBOE) to Hold
CBOE Holdings Inc. (NASDAQ:CBOE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “CBOE Holdings’ third-quarter earnings outperformed the Zacks Consensus Estimate but significantly deteriorated on a year-over-year basis due to lower transaction fees. Trading volumes too declined in the third quarter. Nonetheless, CBOE Holdings is engaged in the expansion of its proprietary product offering, while extending its global customer reach. Diversified product portfolio and core competencies fuel growth prospects. The buyout of Bats Global Markets is a strategic fit as it expand and diversify CBOE Holdings’ product portfolio with the addition of U.S. and European cash equities, Global ETPs and Global FX. Absence of long-term debt limits, and balance sheet risks have been facilitating the company’s effective capital deployment along with its strong capital position. However, exposure to industry volatility and sluggish credit quality amid intense competition and challenging regulations remain concerns for CBOE Holdings.”
CBOE has been the subject of several other research reports. JPMorgan Chase & Co. reiterated a “hold” rating and set a $61.00 target price on shares of CBOE Holdings in a research note on Wednesday, August 3rd. Wells Fargo & Co. reiterated a “hold” rating on shares of CBOE Holdings in a research note on Friday, September 23rd. Evercore ISI upgraded shares of CBOE Holdings from a “hold” rating to a “buy” rating and set a $74.00 target price for the company in a research note on Tuesday, October 11th. Credit Agricole SA reiterated an “underperform” rating and set a $68.00 target price on shares of CBOE Holdings in a research note on Tuesday, September 27th. Finally, Bank of America Corp. downgraded shares of CBOE Holdings from a “neutral” rating to an “underperform” rating and decreased their target price for the stock from $68.29 to $65.00 in a research note on Thursday, August 11th. They noted that the move was a valuation call. Five equities research analysts have rated the stock with a sell rating, ten have given a hold rating and three have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $65.26.
CBOE Holdings (NASDAQ:CBOE) opened at 68.60 on Tuesday. CBOE Holdings has a 52 week low of $58.43 and a 52 week high of $72.53. The company has a 50-day moving average price of $65.40 and a 200-day moving average price of $66.14. The stock has a market cap of $5.58 billion, a price-to-earnings ratio of 29.44 and a beta of 0.57.
CBOE Holdings (NASDAQ:CBOE) last announced its earnings results on Friday, October 28th. The company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.02. CBOE Holdings had a net margin of 29.92% and a return on equity of 73.40%. The business earned $456.20 million during the quarter, compared to the consensus estimate of $159.44 million. During the same quarter in the prior year, the firm earned $0.76 earnings per share. The business’s quarterly revenue was down 16.5% compared to the same quarter last year. Equities research analysts anticipate that CBOE Holdings will post $2.33 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 16th. Stockholders of record on Friday, December 2nd will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.46%. This is a boost from CBOE Holdings’s previous quarterly dividend of $0.23. The ex-dividend date of this dividend is Wednesday, November 30th. CBOE Holdings’s dividend payout ratio (DPR) is 42.92%.
In related news, CEO Edward T. Tilly sold 6,250 shares of the firm’s stock in a transaction that occurred on Monday, September 12th. The shares were sold at an average price of $67.86, for a total transaction of $424,125.00. Following the sale, the chief executive officer now owns 73,611 shares in the company, valued at $4,995,242.46. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.96% of the company’s stock.
Hedge funds have recently made changes to their positions in the company. Geode Capital Management LLC raised its stake in shares of CBOE Holdings by 3.6% in the first quarter. Geode Capital Management LLC now owns 585,063 shares of the company’s stock worth $38,222,000 after buying an additional 20,152 shares during the period. Roosevelt Investment Group Inc. raised its stake in shares of CBOE Holdings by 43.4% in the second quarter. Roosevelt Investment Group Inc. now owns 358,247 shares of the company’s stock worth $23,866,000 after buying an additional 108,496 shares during the period. William Blair Investment Management LLC raised its stake in shares of CBOE Holdings by 2.4% in the second quarter. William Blair Investment Management LLC now owns 1,710,881 shares of the company’s stock worth $113,979,000 after buying an additional 39,704 shares during the period. DRW Securities LLC raised its stake in shares of CBOE Holdings by 2.3% in the second quarter. DRW Securities LLC now owns 4,431 shares of the company’s stock worth $295,000 after buying an additional 100 shares during the period. Finally, JPMorgan Chase & Co. raised its stake in shares of CBOE Holdings by 66.5% in the second quarter. JPMorgan Chase & Co. now owns 56,500 shares of the company’s stock worth $3,765,000 after buying an additional 22,571 shares during the period. Hedge funds and other institutional investors own 74.11% of the company’s stock.
About CBOE Holdings
CBOE Holdings, Inc is a holding company. The Company’s principal business is operating markets that offer for trading options on various market indexes (index options), on an exclusive basis and futures contracts, as well as on non-exclusive multiply listed options, such as options on the stocks of individual corporations (equity options), and options on other exchange-traded products (ETP options), such as exchange-traded funds (ETF options) and exchange-traded notes (ETN options).
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