RBC Capital Mkts: Time To Buy CME Group (NASDAQ:CME)? Has $83.0 Valuation Target


Why Has RBC Capital Mkts Given CME Group (NASDAQ:CME) a $83.0 Price Target

The research firm RBC Capital Mkts has today commenced coverage coverage on CME Group (NASDAQ:CME) shares, with a “Underperform” rating, while having set the target at $83.0.

From a total of 13 analysts covering CME Group (NASDAQ:CME) stock, 7 rate it a ”Buy”, 1 a “Sell”, and 9 a ”Hold”. This means that 41% of the ratings are positive. The highest target price is $107 while the lowest target price is $83. The mean of all analyst targets is $99.85 with a 3.28% above today’s ($96.82) stock price. CME Group was the topic of 8 analyst reports since August 3, 2015 according to the firm StockzIntelligence Inc. Bank of America upgraded shares on October 7 to “Buy” rating.

Approximately 501 shares of stock traded hands. CME Group Inc (NASDAQ:CME) has risen 8.32% since May 6, 2015 and is uptrending. It has outperformed by 9.11% the S&P500.

The overall sentiment of institutions has increased to 1.5 in Q2 2015. Its up 0.35, from 1.15 in 2015Q2. The ratio increased, as 41 institutions have sold all the shares of CME Group Inc that they owned while 165 funds have taken shares off the table. 59 funds have purchased shares for the first time while 250 added to their positions. These institutions now hold 270.37 million shares or 8.37% more than the 249.49 million shares they owned in 2015Q2.

The Fund Vgi Partners Pty Ltd currently is holding shares equating to 16.18% of its total portfolio in CME Group Inc representing a total of 433,565 shares. Another fund,Td Securities (Usa) Llc, is holding a total of 8,943 shares equating to 7.62% of their holdings. Additionally, Two Sigma Securities Llc has a 46,043 share stake in CME Group Inc which represents 6.71% of their total portfolio. The Fund, Iron Financial Llc, based out of Illinois, has also built up a stake in the stock, which represents a total of 6.34% of their total portfolio. Finally Thornburg Investment Management Inc, a fund which is based in the state of New Mexico reported a total holdings of 10.70 million shares.

Insider activity is a very important aspect to track on any stock. Going back to March 4, 2015, shareholders of CME Group Inc have witnessed 1 buying transaction, and a total of 6 insider sales equating to a net activity of approximately $3.93 million . Wescott David J bought 1 shares worth approximately $95. Pankau Ronald A. sold 400 shares worth approximately $36,700. Tobin Jack J sold 600 shares worth approximately $58,962. Gepsman Martin J sold 700 shares worth approximately $67,850. The company insider Gill Phupinder sold 29,425 shares worth $2.84M.

CME Group Inc.is the holding company for Chicago Mercantile Exchange Inc., CBOT, New York Mercantile Exchange, Inc. , Commodity Exchange, Inc. (COMEX) and their respective subsidiaries, as well as CME Clearing Europe Limited (CMECE) and CME Europe Limited (CME Europe). The company has a market cap of $32.75 billion. The Firm also clear futures, options on futures and swaps contracts through its two clearing organizations: CME Clearing, which is a division of CME, and CMECE. It has 25.9 P/E ratio. The Firm offers its clients the opportunity to trade futures contracts and options on futures contracts on a range of products, including those on interest rates, equities, foreign exchange, agricultural commodities, energy and metals.

According to Zacks Investment Research, “Chicago Mercantile Exchange Holdings is the parent company of Chicago Mercantile Exchange Inc, the largest futures exchange in the United States based on notional value, trading volume and open interest. As an international marketplace, CME brings together buyers and sellers on its trading floors and GLOBEX around-the-clock electronic trading platform. CME offers futures contracts and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities.” Get a free copy of the Zacks research report on CME Group Inc (CME).