CME Group (NASDAQ:CME) Reaches New 12-Month High on Strong Earnings

CME Group Inc. (NASDAQ:CME)’s share price reached a new 52-week high on Wednesday following a stronger than expected earnings report. The company traded as high as $253.53 and last traded at $248.18, with a volume of 420017 shares traded. The stock had previously closed at $241.74.

The financial services provider reported $2.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.46 by $0.06. CME Group had a net margin of 57.34% and a return on equity of 13.39%.

CME Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 26th. Investors of record on Friday, March 7th will be issued a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a yield of 2.01%. This is a positive change from CME Group’s previous quarterly dividend of $1.15. The ex-dividend date is Friday, March 7th. CME Group’s dividend payout ratio is 48.37%.

CME Group announced that its board has authorized a stock repurchase program on Thursday, December 5th that authorizes the company to repurchase $3.00 billion in shares. This repurchase authorization authorizes the financial services provider to reacquire up to 3.4% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.

Analyst Ratings Changes

A number of research firms have commented on CME. Oppenheimer boosted their price target on shares of CME Group from $245.00 to $258.00 and gave the stock an “outperform” rating in a research report on Thursday, October 24th. Royal Bank of Canada restated a “sector perform” rating and issued a $235.00 target price on shares of CME Group in a research report on Monday, January 6th. Deutsche Bank Aktiengesellschaft decreased their price target on CME Group from $227.00 to $226.00 and set a “hold” rating for the company in a research note on Monday, November 11th. Piper Sandler boosted their price objective on CME Group from $250.00 to $258.00 and gave the stock an “overweight” rating in a research note on Tuesday, January 7th. Finally, Barclays raised their target price on CME Group from $231.00 to $257.00 and gave the company an “equal weight” rating in a research note on Monday, December 9th. Four equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $229.27.

Institutional Trading of CME Group

Hedge funds have recently modified their holdings of the business. Truvestments Capital LLC purchased a new stake in shares of CME Group in the third quarter worth approximately $26,000. SJS Investment Consulting Inc. lifted its position in CME Group by 570.6% in the 4th quarter. SJS Investment Consulting Inc. now owns 114 shares of the financial services provider’s stock worth $26,000 after buying an additional 97 shares in the last quarter. Dunhill Financial LLC boosted its stake in shares of CME Group by 188.4% during the 3rd quarter. Dunhill Financial LLC now owns 124 shares of the financial services provider’s stock valued at $27,000 after buying an additional 81 shares during the period. New Age Alpha Advisors LLC grew its holdings in shares of CME Group by 50.0% during the 4th quarter. New Age Alpha Advisors LLC now owns 129 shares of the financial services provider’s stock valued at $30,000 after acquiring an additional 43 shares in the last quarter. Finally, Financial Life Planners purchased a new position in shares of CME Group during the 4th quarter valued at $32,000. Hedge funds and other institutional investors own 87.75% of the company’s stock.

CME Group Price Performance

The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.09. The stock’s 50 day moving average price is $235.62 and its two-hundred day moving average price is $224.91. The firm has a market capitalization of $89.72 billion, a price-to-earnings ratio of 26.18, a P/E/G ratio of 5.54 and a beta of 0.57.

About CME Group

CME Group Inc, together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. It offers futures and options products based on interest rates, equity indexes, foreign exchange, agricultural commodities, energy, and metals, as well as fixed income and foreign currency trading services.