Intercontinental Exchange (ICE) Q2 Earnings & Revenues Top

Nasdaq NDAQ, MarketAxess Holdings MKTX and CME Group’s CME second-quarter earnings beat the Zacks Consensus Estimate. 5 Stocks Set to …

Intercontinental Exchange ICE reported second-quarter 2019 adjusted earnings per share of $1.07, which beat the Zacks Consensus Estimate by 2.9%. Also, the bottom line improved 13.8% on a year-over-year basis.

The company witnessed continued revenue growth driven by strong Trading and Clearing as well as Data and Listings.

Performance in Detail

Intercontinental Exchange’s revenues of $1.4 billion increased 7.5% year over year on higher revenues from transaction and clearing, data services, listings and other revenues. Moreover, the top line outpaced the Zacks Consensus Estimate by 0.5%.

Net revenues of Trading and Clearing segment were $710 million, up 12% year over year, while Data and Listings revenues were $685 million, up 3% year over year

Total operating expenses rose 5.3% year over year to $651 million, primarily due to higher compensation and professional services, technology and communication expenses, rent and occupancy and acquisition-related transaction and integration costs. Adjusted operating expenses were $575 million in the second quarter, up 6.5% from the year-ago quarter’s figure.

Adjusted operating income improved 8.2% year over year to $820 million. Adjusted operating margin expanded 100 basis points (bps) from the year-ago quarter to 59%.

Trading and Clearing’s adjusted operating income of $545 million was up 11.3% year over year. Adjusted operating margin contracted 100 bps. Data and Listings’ adjusted operating income rose 4.6% year over year to $366 million and adjusted operating margin of 53% was flat year over year.

Total Futures & Options totaled 5.6 million contracts, flat year over year. Revenue per contract of $1.17 increased 2% year over year.

Intercontinental Exchange Inc. Price, Consensus and EPS Surprise

Intercontinental Exchange Inc. Price, Consensus and EPS SurpriseIntercontinental Exchange Inc. Price, Consensus and EPS Surprise
Intercontinental Exchange Inc. Price, Consensus and EPS Surprise

Intercontinental Exchange Inc. price-consensus-eps-surprise-chart | Intercontinental Exchange Inc. Quote

Financial Update

As of Jun 30, 2020, Intercontinental Exchange had cash and cash equivalents of $1.873 billion, up nearly 5% from the level as of Dec 31, 2019. Long-term debt of $7.7 billion was up 46.7% from 2019-end level.

Total equity was $16.9 billion as of Jun 30, 2010, down 1.8% from 2019 end.

Operating cash flow was $1.4 billion in the first half of 2020, down 0.3% year over year. Free cash flow was $1.1 billion, up 10.9% year over year.

In the first half of 2020, the company returned $1.4 billion to its shareholders.

Third-Quarter 2020 Guidance

Data revenues are estimated between $575 million and $580 million.

Operating expenses are projected in the range of $651-$661 million. Adjusted operating expenses are expected to be in the range of $580 million to $590 million.

Non-operating expense is expected to be in the range of $20 million to $25 million.

Weighted average shares outstanding are anticipated between 542 million and 548 million shares.

2020 View

Operating expenses are predicted in the band of $2.617-$2.667 billion. Adjusted operating expenses are expected to be in the range of $2.32 million to $2.37 million.

Capital expenditures are expected between $350 million and $370 million.

Zacks Rank

Intercontinental Exchange currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Securities and Exchanges

Nasdaq NDAQ, MarketAxess Holdings MKTX and CME Group’s CME second-quarter earnings beat the Zacks Consensus Estimate.

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Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report

CME Group Inc. (CME) : Free Stock Analysis Report

Nasdaq, Inc. (NDAQ) : Free Stock Analysis Report

MarketAxess Holdings Inc. (MKTX) : Free Stock Analysis Report

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DAI Rewards, Bitcoin Futures Record, Blockchain Park + More News

… holders can earn a one-time passive income with 15% interest and discounted service fees; smart contract platform MyWish, enabling holders to use …
  • One of the largest derivatives exchanges in the world, CME Group, said that the institutional interest in bitcoin (BTC) futures is growing. Per their tweet on July 29, a new open interest record of 13,104 contracts has been set.

    Institutional interest in #bitcoin futures is growing, setting a new open interest record of 13,104 contracts. Lear… https://t.co/zkYMDQ4zp0

    — CME Group (@CMEGroup)

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    Why CME Group Inc. (NASDAQ: CME) At $164.88 Is Worth Your Money?

    CME Group Inc. (NASDAQ:CME) does about 1.94M shares in volume on a normal day but saw 2098557 shares change hands in Wednesday trading.

    CME Group Inc. (NASDAQ:CME) does about 1.94M shares in volume on a normal day but saw 2098557 shares change hands in Wednesday trading. The company now has a market cap of 59.59B USD. Its current market price is $164.88, marking a decrease of -0.67% compared to the previous close of $166.00. The 52 week high reached by this stock is $225.36 whilst the lowest price level in 52 weeks is $131.80. The script in recent trading has seen the stock touch a high of $168.36 and a low of $164.7801.

    CME Group Inc. (CME) has a 20-day trading average at $166.98 and the current price is -26.84% off the 52-week high compared with 25.10% distance from its 52-week low. The 50-day simple moving average of the closing price is $173.53 and its 200-day simple moving average is $190.94. If we look at the stock’s price movements over the week, volatility stands at 1.78%, which increases to 2.10% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 40.67 to suggest the stock is neutral.

    21 analysts observing the CME Group Inc. (CME) stock have set the 12-month price targets for the company’s shares at between $140.00 and $225.00. The consensus objective for the share price is $188.00, suggesting that the stock has a potential upside of 12.3% over the period. The median price target is 10.63% away from the current levels at $184.50.

    FactSet Research has provided data showing that 21 brokerages have issued ratings for the stock. 3 analysts have rated it as a sell, while 1 advise that it is a overweight. 9 analysts have rated it as a buy and 8 have advised that investors hold their positions. The consensus recommendation rating is Overweight and Wall Street’s advice is for investors to Moderate Buy the stock.

    Raymond James upgraded the stock to “Outperform” from Mkt Perform on March 30, 2020 at a price target of $194. UBS upgraded its price target at $214-$233.

    The current price level is -1.19%, -5.21%, and -13.46% away from its SMA20, SMA50, and SMA200 respectively, with the CME price moving above the 50-day SMA on July 28. CME Group Inc. (CME) stock is down -1.32% over the week and 2.19% over the past month. Its price is -17.30% year-to-date and -15.82% over the past year.

    The stock last released its quarterly earnings report for quarter ended 3/30/2020, with the company’s earnings per share (EPS) of $2.33 above consensus estimates by $0.1. The company’s next earnings report is expected on 10/29/2020, with forecasts estimating quarterly EPS at $1.62 and $7.31 for whole year. CME’s earnings per share are forecast to grow by 7.50% this year and -0.30% over next year. Expected sales for next quarter are $1.22 billion, which analysts say will come at $5.17 billion for the current fiscal year and next year at $5.11 billion. In addition, estimates put the company’s current quarterly revenue at an average of $1.19 billion.

    Its 12-month price target is $184.50. To reach the target analysts have set, the stock logically needs to grow 12.3 percent from here. Of course, the average price target is just what the average analysts believe a stock will be worth in the next 52 weeks, and is only one metric. There are analysts with lower targets than the average, including one bearish Wall Street research firm advocating investors to wait for the price to pull back to $140.00, given the recent momentum. And then, on the bullish side of things, one analyst is expecting the stock to peak at $225.00.

    Outstanding shares total 357.52M with insiders holding 1.56% of the shares and institutional holders owning 87.98% of the company’s common stock. The company has a return on investment of 6.70% and return on equity of 9.00%. The price to earnings ratio (P/E ratio) amounts to 24.93 while the forward price to earnings ratio is 22.73. The beta has a value of 0.30. Price to book ratio is 2.23 and price to sales ratio is 11.44.

    According to a U.S. Securities and Exchange Commission filing, Washington Mutual Investors Fund has reduced its position in CME Group Inc. (CME) to 14,140,502 shares, mirroring a recent drop by 0.00%. Washington Mutual Investors Fund dumped 0.0 shares of CME Group Inc. common stock bringing its total worth to about $2.3 billion at the end of recent close, SEC documents show. Washington Mutual Investors Fund isn’t the only investment manager who changed stakes and is followed by Vanguard Total Stock Market Index, which sold off -0.12 million shares to end up with 10,221,092 shares worth $1.66 billion. American Funds Income Fund of Ame cut their holdings by 0.00% in the company over the course of the most recent quarter. It now holds a 2.72% position in CME Group Inc. thanks to 9.74 million shares amounting to $1.58 billion.

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    CME Group Inc. (CME) set up for great things

    CME Group Inc. (NASDAQ:CME) went down by -0.67% from its latest closing price when compared to the 1-year high value of $225.36 and move …

    CME Group Inc. (NASDAQ:CME) went down by -0.67% from its latest closing price when compared to the 1-year high value of $225.36 and move down -36.68%, while CME stocks collected -3.19% of loss with the last five trading sessions. The Wall Street Journal reported 12 hours ago that S&P Faces Potential SEC Lawsuit Over Volatility Gauges

    >> Stay Up To Date On The Best Stocks Under $5 + Market Moving Updates 100% Free. Join Today! <<

    CME Group Inc. (NASDAQ:CME) Worth an Investment?

    CME Group Inc. (NASDAQ: CME) scored price to earnings ratio above its average ratio, recording 24.76 times of increase in earnings at the present.

    CME Market Performance

    CME stocks went down by -3.19% for the week, with the monthly jump of 1.77% and a quarterly performance of -9.14%, while its annual performance rate touched -15.40%. The simple moving average for the period of the last 20 days is -1.19% for CME stocks with the simple moving average of -13.46% for the last 200 days.

    Analysts’ Opinion on CME Group Inc. (NASDAQ:CME)

    Many brokerage firms have already submitted their reports for CME stocks, with Keefe Bruyette repeating the rating for CME shares by setting it to “Underperform”. The predicted price for CME socks in the upcoming period according to Keefe Bruyette is $176 based on the research report published on April 14, 2020.

    Raymond James, on the other hand, stated in their research note that they expect to see CME stock at the price of $194. The rating they have provided for CME stocks is “Outperform” according to the report published on March 30, 2020.

    UBS gave “ Buy” rating to CME stocks, setting the target price at $233 in the report published on February 26, 2020.

    CME Stocks -5.21% Far from 50 Day Moving Average

    After a stumble in the market that brought CME to its low price for the period of the last 52 weeks, CME Group Inc. was unable to take a rebound, for now settling with -26.84% of loss for the given period.

    The stock volatility was left at 2.13%, however, within the period of a single month, the volatility rate increased by 1.85%, while the shares surge at the distance of +1.44% for the moving average in the last 20 days. In oppose to the moving average for the last 50 days, trading by -11.26% lower at the present time.

    In the course of the last 5 trading sessions, CME went down by -3.19%, which changed the moving average for the period of 200 days to the total of -22.53% of losses for the stock in comparison to the 20-day moving average settled at $166.99. In addition, CME Group Inc. saw -17.86% in overturn over the period of a single year with a tendency to cut further losses.

    CME Stock Insider Trading

    Reports are indicating that there were more than several insider trading activities at CME Group Inc. (CME), starting from SHEPARD WILLIAM R, who bought 1,229 shares at the price of $178.10 back on Jun 11. After this action, Rushing now owns 2,000 shares of CME Group Inc., valued at $218,885 with the latest closing price.

    Bitsberger Timothy S., the Director of CME Group Inc., sold 600 shares at the value of $191.32 during a trade that took place back on Jun 08, which means that Bitsberger Timothy S. is holding 9,427 shares at the value of $114,789 based on the most recent closing price.

    CME Stock Fundamentals

    The current profitability levels are settled at +49.61 for the present operating margin and +79.08 for gross margin. The net margin for CME Group Inc. stands at +43.37. Total capital return value is set at 7.95, while invested capital returns managed to touch 7.03. Equity return holds the value 9.00%, with 2.60% for asset returns.

    Based on CME Group Inc. (CME), the company’s capital structure generated 16.84 points for debt to equity in total, while total debt to capital is set at the value of 14.41. Total debt to assets is settled at the value of 5.84 with long-term debt to equity ratio rests at 14.51 and long-term debt to capital is 16.65.

    The value for Enterprise to Sales is 15.31 with debt to enterprise value settled at 0.06. The receivables turnover for CME Group Inc. is 9.34 with the total asset turnover at the value of 0.06.

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    Inconsistencies in the Bitcoin Space Are Widespread

    As it stands, volume with CME Group is low, with only about $276 million in bitcoin futures trades accumulating throughout the month. This is about $9 …

    There are several conflicting reports in the crypto world as of late. Despite the idea that bitcoin is surging like mad and is on the verge of once again striking the $11,000 range, it looks like things are very up and down otherwise for both miners and institutions.

    The Bitcoin Market Is Straddled with Ups and Downs

    Recently, Live Bitcoin Newsreported that Bit Farms, a cryptocurrency mining firm, is straddled with heavy debt and is struggling to repay the $20 million+ it owes by the time 2021 rolls in. This is a lot of money in a relatively short period. The company says it has been hit hard over the past few months given that mining is widely considered a non-essential business, and thus it has dealt with heavy blows to its revenue and income.

    By contrast, Canaan Creative is the second-largest mining company in China after Bitmain. Reports have emerged that its stock shares are growing in price, and while shares are only up about three percent at the time of writing, they’ve been up as high as 14 percent in the last few days.

    This can likely be attested to Canaan’s size. Given that it’s one of the largest crypto mining platforms and sellers of mining equipment in the world, Canaan is going to maintain interest from traders and stockbrokers everywhere, but what can be said about the institutional platforms that appear to be undergoing the same inconsistencies?

    For example, we have recently explained that virtually nobody has traded bitcoin options via the Bakkt platform since mid-June. The company has been doing very poorly as of late, and it can be argued that Bakkt has been nothing but a total failure since it first came to fruition roughly one year ago. Since the day it came on the scene, bitcoin has suffered, and the institutional presence it was slated to attract has not materialized.

    On the other hand, you have companies like CME Group in Chicago, which have ultimately brought on many new clients and seen trading surge over the past few weeks. At the time of writing, open interest on the company’s platform has hit an all-time high and exceeded $720 million. The previous record was just over $530 million last May, meaning trades have jumped by roughly $200 million in just the last two months alone.

    Options High, Volume Low

    Where things seem to make a little more sense is in the category of volume. As it stands, volume with CME Group is low, with only about $276 million in bitcoin futures trades accumulating throughout the month. This is about $9 million less than where figures stood in June.

    Still, however, this is quite high compared to the lowly $114 million in bitcoin futures trades that accumulated on the Bakkt platform just yesterday afternoon.

    Tags: Bakkt, bitcoin, Canaan Creative, CME Group