Nasdaq (NASDAQ:NDAQ) Shares Gap Down on Disappointing Earnings

Nasdaq, Inc. (NASDAQ:NDAQ – Get Rating)’s share price gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $61.92, but opened at $58.95. Nasdaq shares last traded at $57.54, with a volume of 739,542 shares trading hands.

The financial services provider reported $0.64 earnings per share for the quarter, missing the consensus estimate of $0.65 by ($0.01). The firm had revenue of $906.00 million during the quarter, compared to analysts’ expectations of $908.94 million. Nasdaq had a net margin of 18.72% and a return on equity of 22.08%. Nasdaq’s revenue for the quarter was up 2.4% compared to the same quarter last year. During the same quarter last year, the company posted $0.64 earnings per share.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Oppenheimer upped their target price on shares of Nasdaq from $65.00 to $71.00 in a research note on Wednesday, November 9th. UBS Group cut shares of Nasdaq to a “neutral” rating in a report on Tuesday, November 15th. Morgan Stanley upped their price target on shares of Nasdaq from $72.00 to $73.00 and gave the company an “overweight” rating in a report on Friday, January 20th. Rosenblatt Securities upped their price target on shares of Nasdaq from $80.00 to $84.00 and gave the company a “buy” rating in a report on Thursday, October 20th. Finally, The Goldman Sachs Group upped their price target on shares of Nasdaq from $50.00 to $55.00 and gave the company a “sell” rating in a report on Monday, November 28th. Two analysts have rated the stock with a sell rating, six have given a hold rating and seven have assigned a buy rating to the company. Based on data from MarketBeat, Nasdaq has an average rating of “Hold” and an average price target of $67.38.

Insiders Place Their Bets

In related news, EVP Bradley J. Peterson sold 13,596 shares of the stock in a transaction dated Tuesday, November 8th. The shares were sold at an average price of $65.00, for a total value of $883,740.00. Following the sale, the executive vice president now owns 122,169 shares of the company’s stock, valued at approximately $7,940,985. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In related news, EVP Bradley J. Peterson sold 13,596 shares of the stock in a transaction dated Tuesday, November 8th. The shares were sold at an average price of $65.00, for a total value of $883,740.00. Following the completion of the transaction, the executive vice president now owns 122,169 shares in the company, valued at approximately $7,940,985. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Jeremy Skule sold 2,100 shares of the stock in a transaction dated Wednesday, December 21st. The shares were sold at an average price of $60.45, for a total transaction of $126,945.00. Following the completion of the transaction, the executive vice president now owns 74,667 shares of the company’s stock, valued at approximately $4,513,620.15. The disclosure for this sale can be found here. Over the last three months, insiders have sold 19,896 shares of company stock valued at $1,277,784. Company insiders own 0.68% of the company’s stock.

Institutional Trading of Nasdaq

Hedge funds have recently made changes to their positions in the stock. Eqis Capital Management Inc. raised its position in Nasdaq by 187.5% during the third quarter. Eqis Capital Management Inc. now owns 9,373 shares of the financial services provider’s stock valued at $531,000 after acquiring an additional 6,113 shares in the last quarter. Sheaff Brock Investment Advisors LLC raised its position in shares of Nasdaq by 197.8% in the third quarter. Sheaff Brock Investment Advisors LLC now owns 4,050 shares of the financial services provider’s stock valued at $230,000 after purchasing an additional 2,690 shares during the period. Apollon Wealth Management LLC bought a new position in shares of Nasdaq in the second quarter valued at approximately $265,000. Canandaigua National Corp raised its position in shares of Nasdaq by 185.2% in the third quarter. Canandaigua National Corp now owns 13,942 shares of the financial services provider’s stock valued at $790,000 after purchasing an additional 9,053 shares during the period. Finally, Aviva PLC raised its position in shares of Nasdaq by 16.6% in the second quarter. Aviva PLC now owns 33,661 shares of the financial services provider’s stock valued at $5,135,000 after purchasing an additional 4,793 shares during the period. 73.01% of the stock is owned by hedge funds and other institutional investors.

Nasdaq Stock Performance

The company has a market cap of $28.32 billion, a P/E ratio of 25.20, a price-to-earnings-growth ratio of 5.44 and a beta of 0.96. The company has a quick ratio of 0.95, a current ratio of 0.96 and a debt-to-equity ratio of 0.78. The stock’s 50-day moving average price is $63.58 and its 200 day moving average price is $60.90.

About Nasdaq

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Nasdaq, Inc is a holding company, which engages in trading, clearing, exchange technology, regulatory, securities listing, information, and public and private company services. It operates through the following segments: Market Technology, Investment Intelligence, Corporate Platforms, and Market Services.