CME Group (NASDAQ:CME) Stock Rating Raised to Sell at Wall Street Zen

Wall Street Zen upgraded shares of CME Group (NASDAQ:CME) from a strong sell rating to a sell rating in a research note issued to investors on Saturday,Wall Street Zen reports.

Several other equities research analysts also recently weighed in on the stock. Weiss Ratings downgraded shares of CME Group from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, August 11th. Raymond James Financial reiterated an “outperform” rating and issued a $320.00 price target on shares of CME Group in a research note on Thursday, July 2nd. UBS Group lowered their price objective on CME Group from $310.00 to $260.00 and set a “buy” rating for the company in a report on Monday, July 6th. Keefe, Bruyette & Woods raised CME Group from a “market perform” rating to an “outperform” rating and set a $305.00 price objective for the company in a report on Thursday, June 18th. Finally, Rothschild & Co Redburn upgraded CME Group from a “neutral” rating to a “buy” rating and upped their price objective for the company from $316.00 to $323.00 in a research note on Thursday, June 11th. Nine analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $289.81.

CME Group Stock Down 0.7%

CME stock opened at $263.14 on Friday. CME Group has a twelve month low of $218.31 and a twelve month high of $329.16. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.13. The company has a market capitalization of $94.62 billion, a P/E ratio of 22.32, a PEG ratio of 3.11 and a beta of 0.24. The firm has a 50 day simple moving average of $271.04 and a 200-day simple moving average of $272.56.

CME Group (NASDAQ:CME) last issued its quarterly earnings results on Wednesday, July 22nd. The financial services provider reported $2.99 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.91 by $0.08. CME Group had a net margin of 63.30% and a return on equity of 15.60%. The business had revenue of $1.71 billion during the quarter, compared to analyst estimates of $1.68 billion. During the same quarter in the previous year, the firm earned $2.96 earnings per share. The business’s revenue was up .8% compared to the same quarter last year. On average, equities research analysts predict that CME Group will post 12.31 earnings per share for the current fiscal year.

CME Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Wednesday, September 9th were given a $1.30 dividend. This represents a $5.20 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date was Wednesday, September 9th. CME Group’s dividend payout ratio (DPR) is presently 44.11%.

Insider Activity

In other CME Group news, Director William R. Shepard bought 293 shares of the business’s stock in a transaction on Friday, September 25th. The shares were purchased at an average price of $268.76 per share, with a total value of $78,746.68. Following the completion of the acquisition, the director directly owned 263,289 shares of the company’s stock, valued at approximately $70,761,551.64. The trade was a 0.11% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Terrence A. Duffy sold 15,000 shares of CME Group stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $274.44, for a total value of $4,116,600.00. Following the completion of the transaction, the chief executive officer owned 40,630 shares of the company’s stock, valued at approximately $11,150,497.20. The trade was a 26.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On CME Group

Several institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in CME Group during the 2nd quarter valued at approximately $6,749,965,000. State Street Corp grew its stake in CME Group by 0.4% during the 4th quarter. State Street Corp now owns 16,144,525 shares of the financial services provider’s stock worth $4,408,747,000 after buying an additional 56,725 shares during the last quarter. Capital International Investors increased its position in CME Group by 2.1% in the fourth quarter. Capital International Investors now owns 4,197,668 shares of the financial services provider’s stock worth $1,146,593,000 after buying an additional 87,411 shares during the period. Bank of America Corp DE increased its position in CME Group by 39.1% in the first quarter. Bank of America Corp DE now owns 4,019,944 shares of the financial services provider’s stock worth $1,187,290,000 after buying an additional 1,130,587 shares during the period. Finally, Bank of New York Mellon Corp bought a new stake in CME Group in the second quarter valued at $867,313,000. 87.75% of the stock is owned by institutional investors.

Key Headlines Impacting CME Group

Here are the key news stories impacting CME Group this week:

• Positive Sentiment: Record trading activity supports revenue prospects: CME Group reported September and third-quarter average daily volume records, with ADV rising 22% year over year in September and 16% for the quarter. Higher volumes generally increase clearing and transaction revenue. CME Group Sets September, Q3 Average Daily Volume Records
• Positive Sentiment: Strong soybean futures participation: CME Group set a new open-interest record in soybean futures, indicating continued engagement in agricultural derivatives and supporting the exchange’s diversified volume base. CME Group Sets New Open Interest Record in Soybean Futures
• Positive Sentiment: Third-quarter earnings expectations remain favorable: Analysts anticipate low double-digit bottom-line growth when CME Group reports third-quarter results later this month, helped by the elevated trading volumes. What You Need to Know Ahead of CME Group’s Earnings Release
• Neutral Sentiment: Investor commentary highlights a volume-versus-price disconnect: Cambiar Investors’ quarterly letter discussed CME Group as a potential addition on weakness, noting that record trading activity has not translated into comparable stock performance. This may attract value-oriented investors but also underscores market hesitation. CME Group Adding on Weakness
• Negative Sentiment: Valuation may limit near-term upside: An analysis asked whether CME Group is fully priced following its push into cryptocurrency futures, suggesting investors may need additional growth or execution evidence to justify further appreciation. Is CME Group Fully Priced After Its Crypto Futures Push?
• Negative Sentiment: Analyst rating adds pressure: Wall Street analysts recently assigned CME Group a “Hold” rating, reinforcing the view that the stock’s strong operating performance may already be reflected in its valuation. CME Group Stock Rated Hold

CME Group Company Profile

CME Group Inc operates global derivatives marketplaces that enable customers to manage risk and trade futures and options contracts. Its exchanges offer products linked to interest rates, equity indexes, foreign currencies, agricultural commodities, energy, metals and other asset classes.

The company also provides central counterparty clearing, settlement and related risk-management services for transactions conducted on its markets. In addition, CME Group offers market data, benchmark products and technology services that support trading, analysis and connectivity for financial institutions, businesses, professional traders and other market participants.

CME Group’s history includes the Chicago Board of Trade, founded in 1848, and the Chicago Mercantile Exchange, established in 1898.