CME Group (NASDAQ:CME) Stock Rating Upgraded by Wells Fargo & Company

CME Group (NASDAQ:CME) was upgraded by research analysts at Wells Fargo & Company to a “strong-buy” rating in a research report issued on Friday, Zacks reports.

Several other equities research analysts have also issued reports on CME. Deutsche Bank Aktiengesellschaft lowered CME Group from a “buy” rating to a “hold” rating and dropped their price target for the stock from $286.00 to $270.00 in a research note on Wednesday, August 19th. Rothschild & Co Redburn upgraded CME Group from a “neutral” rating to a “buy” rating and increased their price objective for the company from $316.00 to $323.00 in a research report on Thursday, June 11th. TD Cowen reissued a “buy” rating and set a $292.00 price objective on shares of CME Group in a report on Monday, September 28th. The Goldman Sachs Group dropped their target price on CME Group from $267.00 to $245.00 and set a “sell” rating for the company in a research report on Tuesday, June 30th. Finally, UBS Group cut their target price on CME Group from $310.00 to $260.00 and set a “buy” rating for the company in a research note on Monday, July 6th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, CME Group presently has an average rating of “Hold” and an average target price of $289.81.

CME Group Price Performance

Shares of NASDAQ:CME opened at $263.14 on Friday. The company’s fifty day moving average price is $271.04 and its 200-day moving average price is $272.56. 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 $94.62 billion, a price-to-earnings ratio of 22.32, a PEG ratio of 3.13 and a beta of 0.24. CME Group has a one year low of $218.31 and a one year high of $329.16.

CME Group (NASDAQ:CME) last posted its quarterly earnings data on Wednesday, July 22nd. The financial services provider reported $2.99 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.91 by $0.08. The company had revenue of $1.71 billion during the quarter, compared to the consensus estimate of $1.68 billion. CME Group had a net margin of 63.30% and a return on equity of 15.60%. The firm’s revenue was up .8% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.96 EPS. On average, equities research analysts anticipate that CME Group will post 12.27 earnings per share for the current fiscal year.

Insider Activity at CME Group

In other CME Group news, CEO Terrence Duffy sold 15,000 shares of the stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $274.44, for a total transaction of $4,116,600.00. Following the completion of the sale, the chief executive officer owned 40,630 shares of the company’s stock, valued at $11,150,497.20. This represents a 26.96% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director William Shepard purchased 293 shares of the business’s stock in a transaction on Friday, September 25th. The stock was purchased at an average cost of $268.76 per share, for a total transaction of $78,746.68. Following the acquisition, the director owned 263,289 shares in the company, valued at approximately $70,761,551.64. The trade was a 0.11% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.30% of the stock is currently owned by company insiders.

Institutional Trading of CME Group

Several large investors have recently modified their holdings of CME. First Citizens Financial Corp bought a new stake in CME Group during the 3rd quarter valued at about $888,000. CX Institutional raised its holdings in CME Group by 137.1% in the third quarter. CX Institutional now owns 5,354 shares of the financial services provider’s stock worth $1,403,000 after buying an additional 3,096 shares during the last quarter. Planning Strategies Inc. lifted its stake in shares of CME Group by 1,528.6% in the third quarter. Planning Strategies Inc. now owns 228 shares of the financial services provider’s stock worth $60,000 after buying an additional 214 shares in the last quarter. Burkett Financial Services LLC bought a new position in shares of CME Group in the third quarter worth approximately $62,000. Finally, Envestnet Portfolio Solutions Inc. grew its holdings in shares of CME Group by 16.6% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 70,325 shares of the financial services provider’s stock valued at $14,809,000 after buying an additional 10,005 shares during the last quarter. 87.75% of the stock is owned by institutional investors.

CME Group News Summary

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

• Positive Sentiment: Record trading activity supports revenue prospects: CME Group reported September and third-quarter average daily volume records, with ADV rising 22% year over year in September and 16% for the quarter. Higher volumes generally increase clearing and transaction revenue. CME Group Sets September, Q3 Average Daily Volume Records
• Positive Sentiment: Strong soybean futures participation: CME Group set a new open-interest record in soybean futures, indicating continued engagement in agricultural derivatives and supporting the exchange’s diversified volume base. CME Group Sets New Open Interest Record in Soybean Futures
• Positive Sentiment: Third-quarter earnings expectations remain favorable: Analysts anticipate low double-digit bottom-line growth when CME Group reports third-quarter results later this month, helped by the elevated trading volumes. What You Need to Know Ahead of CME Group’s Earnings Release
• Neutral Sentiment: Investor commentary highlights a volume-versus-price disconnect: Cambiar Investors’ quarterly letter discussed CME Group as a potential addition on weakness, noting that record trading activity has not translated into comparable stock performance. This may attract value-oriented investors but also underscores market hesitation. CME Group Adding on Weakness
• Negative Sentiment: Valuation may limit near-term upside: An analysis asked whether CME Group is fully priced following its push into cryptocurrency futures, suggesting investors may need additional growth or execution evidence to justify further appreciation. Is CME Group Fully Priced After Its Crypto Futures Push?
• Negative Sentiment: Analyst rating adds pressure: Wall Street analysts recently assigned CME Group a “Hold” rating, reinforcing the view that the stock’s strong operating performance may already be reflected in its valuation. CME Group Stock Rated Hold

About CME Group

CME Group Inc operates global derivatives marketplaces that enable customers to manage risk and trade futures and options contracts. Its exchanges offer products linked to interest rates, equity indexes, foreign currencies, agricultural commodities, energy, metals and other asset classes.

The company also provides central counterparty clearing, settlement and related risk-management services for transactions conducted on its markets. In addition, CME Group offers market data, benchmark products and technology services that support trading, analysis and connectivity for financial institutions, businesses, professional traders and other market participants.

CME Group’s history includes the Chicago Board of Trade, founded in 1848, and the Chicago Mercantile Exchange, established in 1898.