Bank of America just raised its EUR/USD forecast
CHICAGO - Cboe Global Markets, Inc. (Cboe: CBOE), a prominent derivatives and securities exchange network currently trading at $223.03, has announced the appointment of Craig S. Donohue as the new Chief Executive Officer, effective May 7, 2025. The company, which has delivered a remarkable 55% return over the past year, maintains a strong financial health rating according to InvestingPro analysis. Donohue, a veteran in the global financial markets, will also join the company’s Board of Directors, succeeding Fredric Tomczyk, who will transition to an advisory role through June 2025 and continue serving on the Board.
Donohue brings over 30 years of experience in the financial industry, including a notable tenure as CEO of CME Group for eight years until 2012. He has also recently served as Chairman of the Board at OCC, the world’s largest equity derivatives clearing organization, and as its CEO from 2016 to 2019. He joins Cboe at a time when the company demonstrates solid financial metrics, with a gross profit margin of 50.6% and strong cash flows that adequately cover interest payments. InvestingPro data reveals the company has maintained dividend payments for 16 consecutive years, with a current dividend yield of 1.16%.
The Chairman of Cboe’s Board, William M. Farrow III, expressed confidence in Donohue’s ability to lead the company towards future growth and increased shareholder value, citing his strategic vision and leadership skills. Donohue himself expressed enthusiasm for his new role, committing to advance the company’s strategic initiatives and enhance its market leadership.
Outgoing CEO Fredric Tomczyk praised Donohue as a highly accomplished leader and shared his anticipation for a seamless transition. Farrow also acknowledged Tomczyk’s contributions during his tenure as CEO.
Donohue’s career highlights include leading over $20 billion in mergers and acquisitions during his time at CME Group, including the merger with the Chicago Board of Trade and the acquisition of the New York Mercantile Exchange and the Commodity Exchange Inc. His academic credentials include a Master of Management from Northwestern University’s Kellogg Graduate School of Management and a Juris Doctor from The John Marshall Law School.
Cboe Global Markets is known for its innovative trading, clearing, and investment solutions, offering services in multiple asset classes across various regions. The company values innovation, excellence, and teamwork, aiming to provide a trusted, inclusive global marketplace.
The information in this article is based on a press release statement from Cboe Global Markets. According to InvestingPro, analysts have recently revised their earnings expectations upward for the upcoming period, with projected EPS of $9.12 for FY2025. For deeper insights into Cboe’s financial health, valuation metrics, and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 10 additional ProTips and extensive financial metrics.
In other recent news, CBOE Holdings has been the subject of multiple analyst assessments and strategic developments. BofA Securities downgraded CBOE Holdings from Buy to Neutral, lowering the price target to $227, citing potential earnings deceleration in the latter half of 2025. This revision was prompted by a forecasted decline in retail investor engagement, leading to reduced earnings estimates for the years 2025 through 2027. Meanwhile, Morgan Stanley upgraded CBOE Holdings to Overweight, raising the price target to $235, reflecting optimism about growth opportunities and increased trading volumes from new products and expanded distribution.
On the strategic front, CBOE announced the launch of new Cboe FTSE Bitcoin Index futures, set to begin trading in April 2025, pending regulatory approval. These futures are designed to expand CBOE’s bitcoin product offerings, providing market participants with additional tools for trading and managing bitcoin exposure. UBS also adjusted its price target for CBOE Holdings to $235, maintaining a Neutral rating, and noted a 12% anticipated growth in net revenue for the first quarter of 2025, driven by increased index options volumes.
In related developments, Piper Sandler raised the price target for CME Group to $283, maintaining an Overweight rating. The firm highlighted CME Group’s potential to benefit from macroeconomic uncertainty due to its diverse asset exposure and institutional focus. Despite these positive assessments, UBS expressed a preference for CME Group over CBOE Holdings, citing CME’s greater volume exposure and more attractive historical valuation. These recent developments underscore the dynamic environment in which CBOE Holdings and CME Group operate, with both companies navigating market volatility and strategic expansions.
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