MarketAxess (MKTX) Lifted to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of MarketAxess (NASDAQ:MKTX) from a hold rating to a buy rating in a research report sent to investors on Wednesday morning. Zacks Investment Research currently has $246.00 target price on the financial services provider’s stock.
According to Zacks, “MarketAxess Holdings’ earnings per share of $1.02 beat the Zacks Consensus Estimate by 9.7% and was up 13.3% year over year. Strong results were driven by gains across core products, higher market trading volume and better Eurobond volumes. The company’s revenues have been consistently rising for the past several years on the back of a steady increase in commission. Its growth strategies such as acquisitions and alliances have also contributed to its top-line improvement. Its product suite of the highly demanded U.S. high-grade floating rate and other credit bonds are likely to broaden its scope for volume growth. Shares of the company have outperformed its industry’s increase year to date. Nevertheless, escalating costs remain a woe for the company for quite some time. Moreover, with the ongoing investments in several areas, the metric is going to mount higher in the upcoming quarters.”
MKTX has been the subject of several other research reports. Barclays assumed coverage on MarketAxess in a research note on Friday, September 7th. They set an equal weight rating and a $200.00 price target for the company. BidaskClub upgraded MarketAxess from a sell rating to a hold rating in a research note on Friday, October 5th. Goldman Sachs Group assumed coverage on MarketAxess in a research note on Monday, November 5th. They set a sell rating for the company. Finally, ValuEngine upgraded MarketAxess from a hold rating to a buy rating in a research note on Thursday, October 4th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and three have issued a buy rating to the stock. The stock presently has an average rating of Hold and a consensus price target of $211.63.
MarketAxess (NASDAQ:MKTX) last announced its earnings results on Wednesday, October 24th. The financial services provider reported $1.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.93 by $0.09. MarketAxess had a return on equity of 29.40% and a net margin of 37.97%. The firm had revenue of $101.44 million during the quarter, compared to analyst estimates of $101.19 million. During the same period last year, the firm posted $0.90 EPS. The business’s revenue was up 6.1% compared to the same quarter last year. As a group, sell-side analysts predict that MarketAxess will post 4.51 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Wednesday, November 21st. Stockholders of record on Wednesday, November 7th were given a dividend of $0.42 per share. The ex-dividend date of this dividend was Tuesday, November 6th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 0.75%. MarketAxess’s dividend payout ratio (DPR) is presently 43.08%.
In other news, CEO Richard M. Mcvey sold 23,842 shares of MarketAxess stock in a transaction dated Tuesday, October 30th. The stock was sold at an average price of $211.93, for a total transaction of $5,052,835.06. Following the completion of the sale, the chief executive officer now owns 1,054,986 shares in the company, valued at approximately $223,583,182.98. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Kevin M. Mcpherson sold 2,500 shares of MarketAxess stock in a transaction dated Tuesday, November 20th. The shares were sold at an average price of $216.89, for a total value of $542,225.00. The disclosure for this sale can be found here. Company insiders own 3.52% of the company’s stock.
Institutional investors and hedge funds have recently modified their holdings of the company. Roosevelt Investment Group Inc. raised its holdings in shares of MarketAxess by 0.4% during the 3rd quarter. Roosevelt Investment Group Inc. now owns 68,183 shares of the financial services provider’s stock valued at $12,170,000 after buying an additional 241 shares in the last quarter. Oppenheimer Asset Management Inc. raised its holdings in shares of MarketAxess by 2.9% during the 3rd quarter. Oppenheimer Asset Management Inc. now owns 9,450 shares of the financial services provider’s stock valued at $1,686,000 after buying an additional 262 shares in the last quarter. Atria Investments LLC raised its holdings in shares of MarketAxess by 25.6% during the 3rd quarter. Atria Investments LLC now owns 1,358 shares of the financial services provider’s stock valued at $242,000 after buying an additional 277 shares in the last quarter. Riverhead Capital Management LLC raised its holdings in shares of MarketAxess by 2.8% during the 2nd quarter. Riverhead Capital Management LLC now owns 13,842 shares of the financial services provider’s stock valued at $2,739,000 after buying an additional 372 shares in the last quarter. Finally, Massmutual Trust Co. FSB ADV raised its holdings in shares of MarketAxess by 5.2% during the 3rd quarter. Massmutual Trust Co. FSB ADV now owns 8,917 shares of the financial services provider’s stock valued at $1,592,000 after buying an additional 439 shares in the last quarter. Hedge funds and other institutional investors own 99.27% of the company’s stock.
MarketAxess Company Profile
MarketAxess Holdings Inc, together with its subsidiaries, operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments worldwide. It offers institutional investor and broker-dealer the access to global liquidity in U.S.
Featured Story: What are Closed-End Mutual Funds?
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for MarketAxess Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MarketAxess and related companies with MarketBeat.com's FREE daily email newsletter.