Zacks Investment Research lowered shares of Cboe Global Markets (NASDAQ:CBOE) from a buy rating to a hold rating in a report published on Tuesday.
According to Zacks, “Shares of Cboe Global have outperformed the industry in a year’s time. The company remains focused on expansion of its proprietary product offering while extending its global customer reach. Diversified product portfolio and core competencies fuel its growth prospects. Also, the acquisition of Bats Global Markets is a strategic fit as it is likely to broaden and diversify Cboe Global’s product portfolio and boost margins, besides generating expense synergies. It enjoys a strong liquidity and remains focused on improving its leverage ratio. However, stiff competition and escalating costs remain key concerns. Management estimates operating expenses in the range of $420-$428 million, up 1-3% over 2017 and capital expenditure between $50 million and $55 million in 2018. Cboe Global’s fourth-quarter bottom line missed estimates but improved year over year on higher revenues, enactment of the Tax Reform and expanded trading volume.”
A number of other research analysts also recently commented on the stock. BidaskClub raised shares of Cboe Global Markets from a hold rating to a buy rating in a report on Friday, January 26th. JPMorgan Chase & Co. downgraded shares of Cboe Global Markets from an overweight rating to a neutral rating and set a $84.00 price target for the company. in a report on Wednesday, February 7th. Wells Fargo & Co reaffirmed an outperform rating and issued a $120.00 price target (down previously from $138.00) on shares of Cboe Global Markets in a report on Monday, February 12th. Rosenblatt Securities raised shares of Cboe Global Markets from a neutral rating to a buy rating in a report on Monday, February 12th. Finally, Deutsche Bank raised their price objective on shares of Cboe Global Markets from $106.00 to $108.00 and gave the stock a hold rating in a research note on Wednesday, November 8th. Nine analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. The company presently has an average rating of Hold and an average price target of $120.09.
Cboe Global Markets (NASDAQ:CBOE) last announced its quarterly earnings results on Friday, February 9th. The financial services provider reported $0.87 EPS for the quarter, missing the Zacks’ consensus estimate of $0.88 by ($0.01). Cboe Global Markets had a net margin of 17.80% and a return on equity of 12.74%. The business had revenue of $265.60 million during the quarter, compared to the consensus estimate of $267.25 million. During the same period in the previous year, the business posted $0.63 EPS. The firm’s revenue was up 85.7% on a year-over-year basis. research analysts expect that Cboe Global Markets will post 4.64 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 15th. Shareholders of record on Friday, March 2nd will be paid a $0.27 dividend. This represents a $1.08 annualized dividend and a yield of 0.87%. The ex-dividend date of this dividend is Thursday, March 1st. Cboe Global Markets’s payout ratio is currently 30.42%.
Cboe Global Markets announced that its Board of Directors has initiated a stock buyback program on Tuesday, February 27th that permits the company to repurchase $150.00 million in shares. This repurchase authorization permits the financial services provider to reacquire shares of its stock through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its shares are undervalued.
In other Cboe Global Markets news, Chairman Edward T. Tilly sold 5,000 shares of the firm’s stock in a transaction dated Monday, December 11th. The shares were sold at an average price of $126.28, for a total value of $631,400.00. Following the completion of the sale, the chairman now owns 70,611 shares of the company’s stock, valued at $8,916,757.08. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 1.86% of the stock is owned by company insiders.
Several institutional investors have recently bought and sold shares of the company. BlackRock Inc. raised its stake in shares of Cboe Global Markets by 10.8% during the fourth quarter. BlackRock Inc. now owns 8,088,983 shares of the financial services provider’s stock valued at $1,007,804,000 after acquiring an additional 786,423 shares in the last quarter. Legal & General Group Plc raised its stake in shares of Cboe Global Markets by 304.7% during the third quarter. Legal & General Group Plc now owns 490,274 shares of the financial services provider’s stock valued at $52,768,000 after acquiring an additional 369,123 shares in the last quarter. Guggenheim Capital LLC raised its stake in shares of Cboe Global Markets by 84.3% during the fourth quarter. Guggenheim Capital LLC now owns 624,576 shares of the financial services provider’s stock valued at $77,815,000 after acquiring an additional 285,612 shares in the last quarter. Janus Henderson Group PLC raised its stake in shares of Cboe Global Markets by 46.8% during the third quarter. Janus Henderson Group PLC now owns 704,403 shares of the financial services provider’s stock valued at $75,815,000 after acquiring an additional 224,513 shares in the last quarter. Finally, LVW Advisors LLC bought a new stake in shares of Cboe Global Markets during the third quarter valued at approximately $16,945,000. 83.18% of the stock is owned by hedge funds and other institutional investors.
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About Cboe Global Markets
Cboe Global Markets, Inc, formerly CBOE Holdings, Inc, is a holding company. The Company provides trading and investment solutions to investors around the world. It offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, United States and European equities, exchange-traded products (ETPs), global foreign exchange (FX) and multi-asset volatility products based on the Cboe Volatility Index (VIX Index).
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