Cwm LLC Expands Stake in CME Group Amid Institutional Investor Activity

by Yuki

Cwm LLC has significantly increased its stake in CME Group Inc. (NASDAQ: CME), reporting a 50.7% increase in shares during the third quarter, as outlined in its latest filing with the Securities and Exchange Commission (SEC). Following the acquisition of an additional 11,462 shares, Cwm LLC now holds 34,056 shares of the financial services firm, valued at approximately $7.51 million.

The surge in Cwm LLC’s holdings coincides with a broader trend among institutional investors. Bluefin Capital Management LLC, for instance, has established a new stake in CME Group valued at $2.89 million during the fourth quarter. Meanwhile, Alaska Permanent Fund Corp raised its position by 81.4% in the first quarter, now owning 44,534 shares worth $9.59 million after purchasing an additional 19,985 shares. Oak Harvest Investment Services also reported a 66.5% increase in its stake, bringing its total to 45,093 shares valued at $9.71 million. Additionally, Wealth Enhancement Advisory Services LLC grew its position by 21.2%, now holding 48,205 shares valued at $9.48 million.

Overall, institutional investors own approximately 87.75% of CME Group’s stock, reflecting a robust interest in the company.

CME Group Stock Performance

On Friday, CME Group shares opened at $221.72. The company’s 50-day and 200-day simple moving averages stand at $214.61 and $207.97, respectively. Over the past year, CME Group’s stock has fluctuated between a low of $190.70 and a high of $226.78, contributing to a market capitalization of $79.84 billion. The company reports a price-to-earnings (P/E) ratio of 24.45, a price-to-earnings growth (PEG) ratio of 7.76, and a beta of 0.55, indicating lower volatility compared to the broader market. Its debt-to-equity ratio is recorded at 0.10, with both current and quick ratios at 1.02.

Financial Highlights

CME Group recently reported its earnings results for the second quarter, revealing earnings per share (EPS) of $2.56, exceeding analysts’ expectations of $2.53 by $0.03. The company recorded a return on equity of 12.82% and a net margin of 56.98%. Revenue for the quarter reached $1.53 billion, aligning with analyst projections. Compared to the same period last year, revenue rose by 12.7%, with analysts forecasting an EPS of 10.04 for the current fiscal year.

Dividend Announcement

In addition to its financial performance, CME Group announced a quarterly dividend of $1.15, which was distributed on September 25 to investors of record as of September 9. This translates to an annualized dividend of $4.60, yielding 2.07%. The company’s current payout ratio stands at 50.72%.

Insider Transactions

Recent insider activity includes a sale by Director Bryan T. Durkin, who disposed of 7,593 shares at an average price of $214.59, totaling approximately $1.63 million. Durkin continues to hold 55,607 shares valued at roughly $11.93 million. Additionally, CFO Lynne Fitzpatrick sold 754 shares at an average price of $216.99 for a total of $163,610, reducing her holdings to 13,261 shares valued at approximately $2.88 million. Currently, insiders hold about 0.30% of the company’s stock.

Analyst Ratings and Price Targets

Research analysts have varied opinions on CME Group, with Deutsche Bank Aktiengesellschaft upgrading its target price from $193 to $200 and assigning a “hold” rating. Citigroup, on the other hand, raised its target price from $240 to $250 with a “buy” rating. Royal Bank of Canada reiterated a “sector perform” rating with a $235 target price, while Barclays adjusted its target from $209 to $219, assigning an “equal weight” rating. As of now, four analysts recommend selling, seven advise holding, and three suggest buying CME Group shares. The consensus target price stands at $217.71, according to MarketBeat.com.

Company Overview

CME Group Inc. operates global markets for futures and options trading across various sectors, including interest rates, equity indexes, foreign exchange, agricultural commodities, energy, and metals. The company’s strategic positioning continues to attract institutional investment, indicating confidence in its future performance.

As investors navigate market fluctuations, CME Group remains a focal point for analysis and strategic investment.

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