CME Group Inc. (NASDAQ:CME) Receives $229.27 Average PT from Analysts

Shares of CME Group Inc. (NASDAQ:CME) have been given a consensus recommendation of “Reduce” by the fifteen research firms that are currently covering the firm, Marketbeat reports. Four equities research analysts have rated the stock with a sell rating, eight have given a hold rating and three have assigned a buy rating to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $229.27.

A number of equities research analysts have recently weighed in on the company. Piper Sandler boosted their target price on CME Group from $250.00 to $258.00 and gave the company an “overweight” rating in a research note on Tuesday, January 7th. Deutsche Bank Aktiengesellschaft lowered their price objective on CME Group from $227.00 to $226.00 and set a “hold” rating for the company in a research report on Monday, November 11th. Royal Bank of Canada restated a “sector perform” rating and issued a $235.00 target price on shares of CME Group in a report on Monday, January 6th. Morgan Stanley upped their price target on shares of CME Group from $210.00 to $233.00 and gave the company an “equal weight” rating in a report on Thursday, October 17th. Finally, Citigroup lowered shares of CME Group from a “buy” rating to a “neutral” rating and cut their price target for the stock from $255.00 to $250.00 in a report on Monday, January 6th.

CME Group Stock Up 3.0 %

Shares of NASDAQ CME opened at $248.96 on Friday. The stock has a market capitalization of $89.72 billion, a P/E ratio of 26.18, a PEG ratio of 5.54 and a beta of 0.57. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.02 and a quick ratio of 1.02. CME Group has a one year low of $190.70 and a one year high of $253.53. The firm’s 50 day simple moving average is $235.62 and its two-hundred day simple moving average is $224.91.

CME Group (NASDAQ:CME) last issued its earnings results on Wednesday, February 12th. The financial services provider reported $2.52 EPS for the quarter, topping analysts’ consensus estimates of $2.46 by $0.06. CME Group had a net margin of 57.34% and a return on equity of 13.39%. As a group, analysts expect that CME Group will post 10.18 EPS for the current fiscal year.

CME Group declared that its Board of Directors has initiated a stock buyback program on Thursday, December 5th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the financial services provider to repurchase up to 3.4% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board of directors believes its shares are undervalued.

CME Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 26th. Stockholders of record on Friday, March 7th will be given a $1.25 dividend. The ex-dividend date of this dividend is Friday, March 7th. This represents a $5.00 annualized dividend and a dividend yield of 2.01%. This is a positive change from CME Group’s previous quarterly dividend of $1.15. CME Group’s dividend payout ratio is currently 48.37%.

Institutional Trading of CME Group

A number of hedge funds have recently made changes to their positions in the stock. Truvestments Capital LLC bought a new stake in CME Group in the third quarter worth $26,000. SJS Investment Consulting Inc. raised its position in shares of 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 purchasing an additional 97 shares during the last quarter. Dunhill Financial LLC boosted its stake in CME Group by 188.4% in the 3rd quarter. Dunhill Financial LLC now owns 124 shares of the financial services provider’s stock worth $27,000 after purchasing an additional 81 shares in the last quarter. New Age Alpha Advisors LLC grew its position in 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 purchasing an additional 43 shares during the last quarter. Finally, Financial Life Planners bought a new stake in CME Group during the 4th quarter valued at about $32,000. 87.75% of the stock is owned by institutional investors.

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.