CME Group Inc. (NASDAQ: CME) stock fell -2.79% on Friday to $182.03 against a previous-day closing price of $187.25. With 1.37 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.32 million shares. During the session, the Financial Data & Stock Exchanges company that operates in wider Financial sector, reached to the highest price of $187.72 whereas the lowest price it dropped to was $181.97. The 52-week range on CME shows that it touched its highest point at $256.94 and its lowest point at $183.15 during that stretch. It currently has a 1-year price target of $212.57. With its current market cap of 65.16 billion, CME has annualized dividend of $4.00 while the current yield stands at 2.20%. Beta for the stock currently stands at 0.41.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CME was down-trending over the past week, with a drop of -4.85%, but this was down by -8.84% over a month. Three-month performance dropped to -12.68% while six-month performance fell -26.60%. The stock lost -0.64% in the past year, while it has lost -20.32% so far this year. A look at the trailing 12-month EPS for CME yields 8.04 with Next year EPS estimates of 8.35. For the next quarter, that number is 1.91. This implies an EPS growth rate of 24.20% for this year and 5.43% for next year. EPS is expected to grow by 6.96% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 10.00%.
Float and Shares Shorts:
At present, 358.64 million CME shares are outstanding with a float of 357.84 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.0 million, which was 0.83% higher than short shares on Jun 14, 2022. In addition to Mr. Terrence A. Duffy as the firm’s Chairman & CEO, Mr. John William Pietrowicz CPA, M.B.A. serves as its Chief Financial Officer.
Through their ownership of 89.01% of CME’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.40% of CME, in contrast to 32.57% held by mutual funds. Shares owned by individuals account for 1.96%. As the largest shareholder in CME with 9.20% of the stake, Capital Research & Management Co holds 33,077,028 shares worth 33,077,028. A second-largest stockholder of CME, The Vanguard Group, Inc., holds 30,849,706 shares, controlling over 8.58% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in CME, holding 16,298,284 shares or 4.53% stake. With a 4.10% stake in CME, the Washington Mutual Investors Fund is the largest stakeholder. A total of 14,738,068 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.96% of CME stock, is the second-largest Mutual Fund holder. It holds 10,644,495 shares valued at 2.08 billion. American Funds Income Fund of Ame holds 2.60% of the stake in CME, owning 9,355,378 shares worth 1.83 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CME since 19 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CME analysts setting a high price target of $270.00 and a low target of $168.00, the average target price over the next 12 months is $217.47. Based on these targets, CME could surge 48.33% to reach the target high and fall by -7.71% to reach the target low. Reaching the average price target will result in a growth of 19.47% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CME will report FY 2022 earnings on 02/02/2023. Analysts have provided yearly estimates in a range of $8.20 being high and $7.64 being low. For CME, this leads to a yearly average estimate of $7.92. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. CME Group Inc. surprised analysts by $0.04 when it reported $1.97 EPS against a consensus estimate of $1.93. The surprise factor in the prior quarter was $0.11. Based on analyst estimates, the high estimate for the next quarter is $2.07 and the low estimate is $1.76. The average estimate for the next quarter is thus $1.92.
Dividends & Yield:
In terms of dividends, CME has a current ratio of $4.00, which is $4.00 over the trailing 12-months, while a dividend of $3.12 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and CME currently yields $2.14. In the past year, CME’s dividend yield has been $2.14, but when looking at the stock over the past five years, its yield has been $1.67.
Summary of Insider Activity:
Insiders traded CME stock several times over the past three months with 22 Buys and 1 Sells. In these transactions, 17,662 shares were bought while 4,901 shares were sold. The number of buy transactions has increased to 79 while that of sell transactions has risen to 61 over the past year. The total number of shares bought during that period was 129,921 while 158,220 shares were sold.