CME Group, Inc.: A Leader in Derivatives Trading
As of its latest 13F filing with the Securities and Exchange Commission (SEC), Prossimo Advisors LLC has purchased a new stake in CME Group Inc. (NASDAQ:CME) during the fourth quarter. This move could indicate increasing investor interest in this derivatives marketplace, which offers a range of futures and options products for risk management.
CME Group operates exchanges that offer global benchmark products across all major asset classes including interest rates, equity indexes, foreign exchange (FX), energy, agricultural commodities, and metals. Its offerings allow traders to manage a diverse array of risks in their portfolios.
Shares of NASDAQ CME traded up $1.16 on Friday, hitting $184.64 with 310,649 shares traded, compared to its average volume of 1,711,424 shares. The company has a market capitalization of $66.42 billion and has maintained a P/E ratio of 23.31 as well as a price-to-earnings-growth ratio of 4.54 for the past twelve months. Notably, the company’s beta is low at just 0.41.
In terms of liquidity ratios on March 31st , CME had current assets worth $12 billion and current liabilities worth $11 billion – putting it slightly above its peers in this regard.
Despite market fluctuations over the past year due to regulatory changes following Brexit as well as other geopolitical factors, CME Group remains profitable with healthy liquidity metrics suggesting strong ongoing business operations.
The company boasts an impressive track record dating back nearly two centuries to when it began trading eggs at the Chicago Butter & Egg Board around the time of numerous agricultural innovations such as hybrid corn seeds and refrigerated rail cars.
Going forward into May 2023 and beyond this venerable derivatives trader shows no sign of slowing down – investors should take note if they are interested in gaining exposure to this dynamic sector of the financial services industry.
Institutional Investors Increase Holdings in CME Group, with Positive Analyst Ratings and Surprising Earnings Results
Institutional investors have recently been increasing their holdings in CME Group, a derivatives marketplace that offers futures and options products for risk management across all major asset classes. CCLA Investment Management acquired a new position in the company valued at $87,735,000. Meanwhile, Sarasin & Partners LLP grew its stock by 25.4% during the fourth quarter while Vanguard Group Inc. grew its position by 1.3%. Allspring Global Investments Holdings LLC was also active last quarter as it increased its position in CME Group by 130.9%, now owning 723,270 shares of the financial services provider’s stock valued at $121,625,000.
Equities research analysts have also closely monitored the company’s performance with various ratings given to CME Group during recent months. Credit Suisse Group gave the stock an “outperform” rating and increased their target price from $192 to $198. Deutsche Bank Aktiengesellschaft upped their target price on CME Group from $206 to $208. StockNews.com issued a “hold” rating for the company while Oppenheimer has given them an “outperform” rating and expanded their target price from $213 to $221.
Despite there being one sell rating given towards the stock, Bloomberg reported that CME group is still present with an average rating of “Moderate Buy” and has a consensus target price of $218.23.
CME Group has recently announced earnings results on Wednesday, April 26th where they had surpassed analysts’ earnings per share consensus estimates of $2.36 by recording an EPS of $2.42 for the quarter which was aided mostly by strong revenue growth over the past year in which they’ve recorded figures close to approximately $1 billion quarterly revenue growth rate each quarter compared to previous quarters where it was less than half of that rate.
Moreover, CME is set to release dividends for the quarter which will be paid on Tuesday, June 27th to shareholders. This marks a $4.40 annualized dividend and an approximate dividend yield of 2.38%.
