According to Zacks, “MarketAxess Holdings’ expense management continues to raise concerns. Increase in employee compensation and benefits, along with other operating expenses, has drained the company's bottom line. Intense competition due to increased market consolidation and new entrants has reduced the company's market share. The company is expected to release third quarter earnings on Oct 19, 2016. The Zacks Consensus earning estimate for the quarter is pegged at $0.79 per share which translates into year over year growth rate of 31.7%. However, the company is poised to grow over the long term from a consistent increase in trading volumes, launch of new products and increasing client base. The acquisition of Xtracker, other alliances, continued growth in Europe should also support top-line growth. Further, MarketAxess enjoys strong liquidity and a steady capital position, which enables it to buy back shares and increase dividend from time to time.”
A number of other research analysts have also weighed in on the stock. Credit Suisse Group AG reiterated a sell rating and issued a $106.00 price objective on shares of MarketAxess Holdings in a research note on Friday, July 29th. Keefe, Bruyette & Woods lifted their price objective on shares of MarketAxess Holdings from $165.00 to $175.00 and gave the company an outperform rating in a research note on Friday, July 29th. Raymond James Financial Inc. lowered shares of MarketAxess Holdings from an outperform rating to a market perform rating in a research note on Friday, July 15th. Citigroup Inc. lowered shares of MarketAxess Holdings to a market perform rating in a research note on Friday, July 15th. They noted that the move was a valuation call. Finally, William Blair assumed coverage on shares of MarketAxess Holdings in a research note on Monday, June 20th. They issued a market perform rating for the company. Three equities research analysts have rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the stock. The company presently has a consensus rating of Hold and an average target price of $140.75.
MarketAxess Holdings (NASDAQ:MKTX) opened at 156.89 on Thursday. The company’s 50-day moving average price is $167.69 and its 200 day moving average price is $147.60. The company has a market capitalization of $5.90 billion, a price-to-earnings ratio of 54.10 and a beta of 0.65. MarketAxess Holdings has a 12 month low of $86.19 and a 12 month high of $178.21.
MarketAxess Holdings (NASDAQ:MKTX) last released its quarterly earnings data on Thursday, July 28th. The company reported $0.88 earnings per share for the quarter, beating analysts’ consensus estimates of $0.85 by $0.03. MarketAxess Holdings had a net margin of 32.52% and a return on equity of 27.14%. The business earned $96.60 million during the quarter, compared to analyst estimates of $93.98 million. During the same period in the previous year, the business earned $0.64 EPS. MarketAxess Holdings’s revenue was up 27.9% compared to the same quarter last year. Analysts forecast that MarketAxess Holdings will post $3.22 EPS for the current fiscal year.
In other news, insider Nicholas Themelis sold 6,200 shares of the business’s stock in a transaction on Tuesday, August 23rd. The shares were sold at an average price of $165.40, for a total transaction of $1,025,480.00. Following the completion of the transaction, the insider now directly owns 70,799 shares in the company, valued at approximately $11,710,154.60. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Antonio L. Delise sold 10,000 shares of the business’s stock in a transaction on Friday, August 19th. The shares were sold at an average price of $166.79, for a total transaction of $1,667,900.00. Following the transaction, the chief financial officer now owns 59,494 shares of the company’s stock, valued at $9,923,004.26. The disclosure for this sale can be found here. Insiders own 4.51% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Aperio Group LLC raised its position in MarketAxess Holdings by 8.7% in the first quarter. Aperio Group LLC now owns 13,884 shares of the company’s stock worth $1,733,000 after buying an additional 1,111 shares during the period. BlackRock Inc. raised its position in MarketAxess Holdings by 9.2% in the first quarter. BlackRock Inc. now owns 14,541 shares of the company’s stock worth $1,815,000 after buying an additional 1,230 shares during the period. BlackRock Group LTD raised its position in MarketAxess Holdings by 32.9% in the first quarter. BlackRock Group LTD now owns 28,177 shares of the company’s stock worth $3,517,000 after buying an additional 6,974 shares during the period. BlackRock Institutional Trust Company N.A. raised its position in MarketAxess Holdings by 0.3% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 1,089,927 shares of the company’s stock worth $136,056,000 after buying an additional 3,269 shares during the period. Finally, Columbia Partners L L C Investment Management raised its position in MarketAxess Holdings by 10.0% in the first quarter. Columbia Partners L L C Investment Management now owns 14,702 shares of the company’s stock worth $1,835,000 after buying an additional 1,331 shares during the period. Hedge funds and other institutional investors own 92.37% of the company’s stock.
About MarketAxess Holdings
MarketAxess Holdings Inc (MarketAxess) is an electronic trading platform. The Company operates as an electronic multi-party platform for the trading of fixed-income securities and provides related data, analytics, compliance tools and post-trade services. The Company’s multi-dealer trading platform allows its institutional investor clients to request bids or offers from its broker-dealer clients and execute trades with the broker-dealer of their choice from among those that choose to respond.
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