CHICAGO—Martin J. Gepsman, a director at CME Group Inc. (NASDAQ:), has recently sold shares in the company, according to a filing with the Securities and Exchange Commission. The transaction, which took place on November 4, involved the sale of 400 shares of Common Stock Class A at a price of $222.92 per share, amounting to a total value of $89,168.
Following this transaction, Gepsman holds 25,067 shares directly in the company. This sale is part of a routine disclosure required for company insiders who buy or sell stock in their own company, providing transparency and insight into insider trading activities. CME Group, headquartered in Chicago, operates as one of the world’s leading derivatives marketplaces.
In other recent news, CME Group reported robust trading activity for October 2024, marking the second-highest October average daily volume (ADV) in the company’s history. This was bolstered by record activity across multiple asset classes, including interest rates, energy, and agricultural products. CME Group also announced a record-setting third quarter with an adjusted EPS of $2.68 and revenue nearing $1.6 billion, an 18% rise from the same quarter in 2023.
The company has received approval from the National Futures Association to establish its own futures commission merchant, aiming to adapt to evolving client needs. In response to these recent developments, Oppenheimer maintained an Outperform rating on CME Group shares, increasing the price target to $258, while BofA Securities adjusted its price target to $181, maintaining an Underperform rating.
CME Group also reported significant growth in new retail traders and institutional clients, up by 30% and nearly 40% respectively. In addition, the energy sector volumes rose by 21%, with a 45% increase in options volumes. These recent developments underscore CME Group’s continued focus on customer acquisition and product innovation.
InvestingPro Insights
While Martin J. Gepsman’s recent sale of CME Group shares might raise eyebrows, a closer look at the company’s financials and market position reveals a more nuanced picture. According to InvestingPro data, CME Group boasts a substantial market capitalization of $80.32 billion, underscoring its significant presence in the derivatives marketplace.
The company’s financial health appears robust, with a revenue of $6.03 billion over the last twelve months as of Q3 2024, representing a solid growth of 13.05%. This growth trajectory is further emphasized by the company’s impressive quarterly revenue growth of 18.65% in Q3 2024, indicating strong market demand for CME’s services.
InvestingPro Tips highlight CME Group’s commitment to shareholder value. The company has maintained dividend payments for 22 consecutive years and has raised its dividend for 5 consecutive years. This consistent dividend policy, coupled with a current dividend yield of 4.42%, may appeal to income-focused investors despite insider sales.
Moreover, CME Group’s stock is trading near its 52-week high, with a price that is 96.84% of its peak. This performance, along with a one-year price total return of 11.98%, suggests investor confidence in the company’s prospects.
For those seeking a deeper understanding of CME Group’s potential, InvestingPro offers additional insights with 10 more tips available, providing a comprehensive view of the company’s financial landscape and market position.
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