CME Group (NASDAQ:CME) Stock: Insider Martin Gepsman Sells 400 Shares

CME Group Inc. (NASDAQ:CME) Director Martin Gepsman sold 400 shares of the company’s stock in a transaction on Thursday, October 22nd. The shares were sold at an average price of $302.50, for a total transaction of $121,000.00. Following the completion of the transaction, the director owned 25,244 shares of the company’s stock, valued at approximately $7,636,310. The trade was a 1.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website.

CME Group Price Performance

Shares of NASDAQ:CME opened at $305.71 on Friday. The company’s fifty day moving average price is $277.60 and its 200 day moving average price is $270.74. CME Group Inc. has a 12 month low of $218.31 and a 12 month high of $329.16. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.02 and a quick ratio of 1.02. The firm has a market capitalization of $109.93 billion, a P/E ratio of 25.08, a P/E/G ratio of 3.92 and a beta of 0.24.

CME Group (NASDAQ:CME) last released its quarterly earnings data on Wednesday, October 21st. The financial services provider reported $3.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.99 by $0.03. The company had revenue of $1.74 billion during the quarter, compared to the consensus estimate of $1.71 billion. CME Group had a net margin of 63.33% and a return on equity of 16.23%. CME Group’s revenue for the quarter was up 10.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.68 earnings per share. As a group, sell-side analysts predict that CME Group Inc. will post 12.36 earnings per share for the current fiscal year.

CME Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Wednesday, September 9th were issued a $1.30 dividend. This represents a $5.20 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Wednesday, September 9th. CME Group’s payout ratio is presently 42.66%.

Institutional Trading of CME Group

Hedge funds have recently added to or reduced their stakes in the stock. Bridgewater Advisors Inc. purchased a new stake in CME Group in the 2nd quarter valued at about $612,000. The Manufacturers Life Insurance Company acquired a new stake in shares of CME Group in the second quarter worth approximately $53,671,000. Focus Financial Network Inc. acquired a new stake in shares of CME Group in the third quarter worth approximately $1,513,000. Haverford Trust Co acquired a new stake in shares of CME Group in the second quarter worth approximately $13,818,000. Finally, Bowie Capital Management LLC purchased a new stake in CME Group in the second quarter valued at approximately $22,991,000. 87.75% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on CME. Morgan Stanley raised their price target on CME Group from $337.00 to $359.00 and gave the stock an “overweight” rating in a research note on Thursday. UBS Group boosted their price objective on CME Group from $270.00 to $310.00 and gave the company a “neutral” rating in a research note on Thursday. Bank of America increased their price objective on CME Group from $226.00 to $230.00 and gave the company an “underperform” rating in a report on Thursday, July 23rd. Piper Sandler reissued an “overweight” rating and issued a $330.00 price objective (up from $295.00) on shares of CME Group in a report on Thursday. Finally, Wells Fargo & Company raised their target price on shares of CME Group from $315.00 to $333.00 and gave the stock an “overweight” rating in a research report on Thursday. Ten analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $313.29.

Key CME Group News

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

• Positive Sentiment: Record quarterly results: CME reported third-quarter revenue of approximately $1.74 billion, up 10.6% year over year and above the $1.71 billion consensus estimate. EPS of $3.02 also exceeded expectations of $2.99, while average daily volume reached a record 29.4 million contracts. CME third-quarter revenue article
• Positive Sentiment: Crypto derivatives momentum: CME recorded approximately $469.5 billion in crypto derivatives volume during the third quarter, highlighting growing demand for regulated digital-asset products. The company has not separately disclosed crypto revenue, so the direct earnings contribution remains unclear. CME crypto derivatives volume article
• Positive Sentiment: More bullish analyst coverage: JPMorgan upgraded CME from “underweight” to “overweight” and set a $367 price target, citing improving volume and earnings prospects. Wells Fargo also raised its target to $333. JPMorgan CME rating
• Positive Sentiment: Expansion opportunities: CME plans to launch CME Securities Clearing on December 7, potentially broadening its clearing business. Management also highlighted strong participation and international volume growth. CME Securities Clearing article
• Neutral Sentiment: Valuation remains debated: UBS lifted its price target from $270 to $310 but retained a “neutral” rating, indicating that much of the improved outlook may already be reflected in the stock. UBS CME rating
• Negative Sentiment: Insider sale: Director Martin Gepsman sold 400 shares for approximately $121,000. The transaction reduced his holdings by 1.56%, but he still owns 25,244 shares, limiting the sale’s significance. CME director stock sale

CME Group Company Profile

CME Group Inc operates global derivatives marketplaces that provide trading, clearing and settlement services for futures and options contracts. Its products cover major asset classes, including interest rates, equity indexes, foreign currencies, agricultural commodities, energy and metals. The company also provides market data, benchmark information and related services used by financial institutions, corporations, producers, investors and other market participants.

CME Group’s exchange portfolio includes CME, the Chicago Board of Trade, the New York Mercantile Exchange and COMEX.