CME Group (NASDAQ:CME) Hits New 1-Year High – What’s Next?

CME Group Inc. (NASDAQ:CME)’s share price reached a new 52-week high on Friday . The company traded as high as $254.40 and last traded at $252.69, with a volume of 110980 shares. The stock had previously closed at $249.85.

Analysts Set New Price Targets

A number of research firms have weighed in on CME. Keefe, Bruyette & Woods upped their target price on CME Group from $256.00 to $257.00 and gave the stock a “market perform” rating in a report on Friday, February 14th. JPMorgan Chase & Co. upped their target price on CME Group from $209.00 to $212.00 and gave the stock an “underweight” rating in a report on Thursday, February 13th. Piper Sandler upped their target price on CME Group from $250.00 to $258.00 and gave the stock an “overweight” rating in a report on Tuesday, January 7th. Citigroup lowered CME Group from a “buy” rating to a “neutral” rating and lowered their target price for the stock from $255.00 to $250.00 in a report on Monday, January 6th. Finally, Deutsche Bank Aktiengesellschaft reduced their price target on CME Group from $227.00 to $226.00 and set a “hold” rating on the stock in a research report on Monday, November 11th. Four equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and three have issued a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $236.13.

CME Group Stock Performance

The company has a current ratio of 1.01, a quick ratio of 1.02 and a debt-to-equity ratio of 0.10. The firm has a 50-day moving average of $238.12 and a 200-day moving average of $228.59. The stock has a market capitalization of $91.45 billion, a price-to-earnings ratio of 26.24, a P/E/G ratio of 6.76 and a beta of 0.57.

CME Group (NASDAQ:CME) last released its earnings results on Wednesday, February 12th. 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 return on equity of 13.62% and a net margin of 57.52%. As a group, sell-side analysts predict that CME Group Inc. will post 10.49 earnings per share for the current year.

CME Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 26th. Shareholders of record on Friday, March 7th will be given a dividend of $1.25 per share. This is an increase from CME Group’s previous quarterly dividend of $1.15. This represents a $5.00 annualized dividend and a yield of 1.97%. The ex-dividend date of this dividend is Friday, March 7th. CME Group’s dividend payout ratio (DPR) is currently 51.71%.

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

Insiders Place Their Bets

In other news, insider Hilda Harris Piell sold 3,984 shares of the stock in a transaction dated Thursday, February 27th. The shares were sold at an average price of $250.47, for a total transaction of $997,872.48. Following the sale, the insider now directly owns 27,046 shares of the company’s stock, valued at $6,774,211.62. This represents a 12.84 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Julie Winkler sold 11,592 shares of the stock in a transaction dated Thursday, February 13th. The stock was sold at an average price of $249.17, for a total transaction of $2,888,378.64. Following the sale, the insider now directly owns 21,885 shares in the company, valued at approximately $5,453,085.45. The trade was a 34.63 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.30% of the stock is owned by insiders.

Institutional Investors Weigh In On CME Group

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