Investment firm Olympiad Research LP has acquired a new stake in CME Group Inc. during the second quarter of 2023, as revealed in a recent filing with the Securities and Exchange Commission. The firm purchased 960 shares of the financial services provider, valued at approximately $265,000. This investment underscores the growing interest in CME Group among institutional investors.
Multiple other institutional investors have also adjusted their positions in CME Group. Notably, Webster Bank N.A. increased its stake by 206.9% during the same quarter, owning 89 shares valued at $25,000 after an additional purchase of 60 shares. Similarly, Highline Wealth Partners LLC boosted its holdings by 84.3%, acquiring 94 shares worth $26,000 after purchasing an additional 43 shares.
Additional investments include Ransom Advisory Ltd, which established a new position in CME Group valued at about $31,000, and Trifecta Capital Advisors LLC, which lifted its position by 59.2%, now holding 113 shares valued at $31,000. Finally, Westside Investment Management Inc. increased its stake by 105.0% in the same quarter, now owning 123 shares worth $34,000. Collectively, hedge funds and institutional investors own approximately 87.75% of CME Group’s stock.
Wall Street Analysts Adjust Price Targets
Recent evaluations from various brokerages have influenced market sentiment regarding CME Group. Argus revised its price target down from $308.00 to $295.00, while Rothschild & Co Redburn increased its target from $297.00 to $300.00, assigning a “neutral” rating. Morgan Stanley also raised its price target from $312.00 to $314.00, maintaining an “overweight” rating.
Conversely, UBS Group cut its price objective from $285.00 to $280.00, retaining a “neutral” rating. Additionally, The Goldman Sachs Group slightly increased its target from $262.00 to $263.00, issuing a “sell” rating. Currently, eight research analysts rate the stock as a “Buy,” while seven assign a “Hold” rating and three recommend a “Sell.” The consensus price target stands at $287.06, according to data from MarketBeat.
CME Group’s Financial Performance and Dividend Announcement
On October 22, 2023, CME Group announced its quarterly earnings, reporting earnings per share (EPS) of $2.68, exceeding analysts’ expectations of $2.63 by $0.05. The company had a net margin of 58.84% and a return on equity of 14.61%. Revenue for the quarter reached $1.54 billion, slightly below the consensus estimate of $1.56 billion, marking a 3.0% decline compared to the previous year.
The company also announced a quarterly dividend of $1.25, set to be paid on December 30, 2023. Shareholders of record on December 12, 2023 will receive this payment, translating to an annualized dividend of $5.00 and a yield of 1.8%. The ex-dividend date is also December 12. CME Group’s payout ratio stands at 48.45%.
In insider trading news, Sunil Cutinho, an insider, sold 11,896 shares on August 26, 2023, at an average price of $271.47, totaling over $3.22 million. Following this transaction, Cutinho retained 17,440 shares valued at approximately $4.73 million. Conversely, Director William R. Shepard purchased 262 shares on September 25 at an average price of $265.19, totaling around $69,480.
Overall, 0.30% of CME Group’s stock is currently held by corporate insiders, with recent insider sales totaling 14,043 shares valued at nearly $3.79 million.
CME Group Inc. operates contract markets for trading futures and options on various assets, including interest rates and commodities. As institutional interest continues to grow, the company’s financial performance and strategic decisions will be closely monitored by investors and analysts alike.
