On June 9, 2023, financial services provider Nasdaq, Inc. (NASDAQ:NDAQ) made waves in the investment world when Neuberger Berman Group LLC disclosed a notable trimming in their holdings of the company’s stock. According to a recent 13F filing with the Securities and Exchange Commission (SEC), Neuberger Berman Group LLC decreased its position in Nasdaq by 15.8% during the fourth quarter, selling off 32,822 shares and leaving them with a remaining 175,181 shares worth $10,747,000 at the end of the reporting period.
Nasdaq remains an attractive option for investors to this day as shown by their earnings report on April 19th earlier this year. For that quarter, they reported earnings per share (EPS) of $0.69 beating analysts’ consensus estimates by $0.03 who predicted EPS of $0.66. The company had a net margin of 18.38% and a return of equity of 22.15%. They generated total revenues amounting to $914 million, also surpassing analyst projections who estimated it to reach $910.06 million for that period.
With these impressive results and constant improvements in their market technology and information offerings, Nasdaq is set to maintain its position as a top contender in trading, clearing, exchange technology, regulatory compliances and public/private company services across all of its business segments; namely Market Technology, Investment Intelligence, Corporate Platforms and Market Services.
All indications suggest that Nasdaq has bright future prospects and research analysts are forecasting earnings per share at 2.71 for the current year alone! With these impressive figures coming from an established industry leader who has expanded into many financial verticals; institutions should take notice – it could be just what savvy investors have been seeking!
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Nasdaq, Inc. Gains the Attention of Hedge Funds and Institutional Investors with Impressive Year
Nasdaq, Inc. has been making waves in the financial services industry lately, thanks to a number of high-profile investments from hedge funds and other institutional investors. Recent reports indicate that CI Investments Inc., Fiduciary Alliance LLC, Capital Advisors Ltd. LLC, Glassman Wealth Services, and Covestor Ltd have all made significant moves to increase their ownership of Nasdaq’s shares in recent months. Altogether, these funds’ positions represent 73.01% of the provider’s total stock.
These purchases come on the heels of an impressive year for Nasdaq. As of June 9th, the company’s shares opened at $57.67 and boasted a market cap of $28.30 billion. With a price-to-earnings ratio (P/E) of 25.11, a PEG ratio of 4.75 and a beta of 0.97, it seems that many investors are betting big on Nasdaq’s success.
What makes this news particularly interesting is that Nasdaq is more than just a traditional exchange service provider; it also offers trading technology, regulatory compliance resources, securities listing capabilities, and other public and private company services across its four key segments: Market Technology, Investment Intelligence, Corporate Platforms, and Market Services.
But perhaps most exciting for current shareholders is Nasdaq’s recently declared quarterly dividend increase. The payout amount will be $0.22 per share – up from the previous dividend payment amount of $0.20 – with stockholders being issued this money on June 30th if they were recorded as such as of June 16th. This represents an annualized return rate of nearly 1.53%, not including future capital gains or losses.
Despite these positive headlines however, some analysts have raised concerns about overvaluation or underperformance issues around the company in recent months. In particular, Morgan Stanley lowered its rating for Nasdaq from overweight to equal weight and reduced its price target from $70.00 to $60.00 in a research report on April 11th, citing fears over upcoming investments by the company and lower-than-expected dividends.
Nevertheless, the consensus among industry experts seems to support further growth in Nasdaq’s future, with many investors looking forward to more positive news around new products or services being offered by the brand. Only time will tell whether or not these investment decisions will pay off for all involved parties, but there’s no doubt that Nasdaq remains an important player in today’s financial world.
