MarketAxess (NASDAQ:MKTX) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report issued on Monday. The brokerage currently has a $238.00 price objective on the financial services provider’s stock. Zacks Investment Research‘s price target indicates a potential upside of 16.35% from the company’s current price.
According to Zacks, “MarketAxess’ stock has outperformed the industry in a year's time. MarketAxess’ results have been impressive for long courtesy of growth in revenues, improving trading volumes, ongoing investments in areas including Open Trading, launch of products and its strong market position in U.S. credit. Also, it continues to benefit from international business, with strength in both emerging markets and Eurobond spaces. Its selective acquisitions and strategic lliances have aided its top line growth. However, its escalating costs remain a significant headwind. Its expenses are expected to rise over the coming quarters given ongoing investments in several areas including trading platform, new protocols and infrastructure as well as headcount additions. The stock has seen the Zacks Consensus Estimate for 2018 earnings being revised 14.5% upward over the last 30 days.”
Other analysts have also recently issued reports about the company. Keefe, Bruyette & Woods reiterated a “buy” rating and set a $215.00 price target on shares of MarketAxess in a research report on Friday, December 22nd. Goldman Sachs Group cut MarketAxess from a “buy” rating to a “neutral” rating and set a $210.00 price target on the stock. in a research report on Monday. Finally, Rosenblatt Securities began coverage on MarketAxess in a research report on Thursday, December 14th. They set a “neutral” rating and a $190.00 price target on the stock. Five research analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company’s stock. MarketAxess has an average rating of “Buy” and a consensus target price of $202.86.
MarketAxess (NASDAQ:MKTX) last announced its quarterly earnings results on Wednesday, October 25th. The financial services provider reported $0.90 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.90. The business had revenue of $96.70 million for the quarter, compared to analysts’ expectations of $96.35 million. MarketAxess had a return on equity of 30.12% and a net margin of 37.67%. The business’s quarterly revenue was up 7.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.82 EPS. equities research analysts predict that MarketAxess will post 3.93 earnings per share for the current fiscal year.
MarketAxess declared that its Board of Directors has initiated a share repurchase program on Wednesday, October 25th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the financial services provider to repurchase shares of its stock through open market purchases. Shares repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.
In related news, Director Stephen P. Casper sold 2,000 shares of the stock in a transaction that occurred on Wednesday, November 29th. The stock was sold at an average price of $195.84, for a total value of $391,680.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Richard M. Mcvey sold 35,000 shares of the stock in a transaction that occurred on Wednesday, November 8th. The stock was sold at an average price of $178.29, for a total value of $6,240,150.00. Following the completion of the transaction, the chief executive officer now directly owns 1,113,076 shares of the company’s stock, valued at $198,450,320.04. The disclosure for this sale can be found here. Insiders sold a total of 50,225 shares of company stock valued at $8,955,630 over the last three months. Corporate insiders own 4.02% of the company’s stock.
A number of hedge funds have recently modified their holdings of the stock. D.A. Davidson & CO. grew its holdings in MarketAxess by 0.5% in the 2nd quarter. D.A. Davidson & CO. now owns 1,380 shares of the financial services provider’s stock worth $277,000 after buying an additional 7 shares in the last quarter. Coldstream Capital Management Inc. boosted its stake in MarketAxess by 2.5% during the 2nd quarter. Coldstream Capital Management Inc. now owns 1,610 shares of the financial services provider’s stock valued at $324,000 after purchasing an additional 40 shares in the last quarter. Parametric Portfolio Associates LLC boosted its stake in MarketAxess by 0.4% during the 2nd quarter. Parametric Portfolio Associates LLC now owns 36,011 shares of the financial services provider’s stock valued at $7,242,000 after purchasing an additional 134 shares in the last quarter. Cubist Systematic Strategies LLC boosted its stake in MarketAxess by 9.1% during the 2nd quarter. Cubist Systematic Strategies LLC now owns 1,624 shares of the financial services provider’s stock valued at $327,000 after purchasing an additional 135 shares in the last quarter. Finally, Suntrust Banks Inc. boosted its stake in MarketAxess by 3.2% during the 2nd quarter. Suntrust Banks Inc. now owns 4,438 shares of the financial services provider’s stock valued at $892,000 after purchasing an additional 136 shares in the last quarter. 91.65% of the stock is owned by institutional investors and hedge funds.
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MarketAxess Company Profile
MarketAxess Holdings Inc operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments using its trading technology. Institutional investor and broker-dealer firms are users of trading platform, accessing global liquidity in the United States corporate bonds, emerging markets and high-yield bonds, European bonds, the United States agency bonds, municipal bonds, credit default swaps and other fixed-income securities.
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