CME Group stock hits 52-week high at $253.69 amid market rally

Published 28/02/2025, 15:42
CME Group stock hits 52-week high at $253.69 amid market rally

CME Group Inc. (NASDAQ:CME) shares soared to a 52-week high of $253.69, reflecting a robust performance in the financial market services sector. With a substantial market capitalization of $91.5 billion and a strong dividend yield of 4.32%, InvestingPro data shows the company’s impressive financial health score rates as "GOOD." The company, known for its diverse derivatives marketplace, has seen its stock price surge in response to increased trading volumes and a favorable economic environment for financial exchanges. Over the past year, CME Group has experienced a significant uptick in investor confidence, with a total return of 18.41%. This milestone underscores the company’s strong market position and the growing demand for its trading and clearing services, supported by a 10% revenue growth and consistent dividend payments for 23 consecutive years. For deeper insights into CME’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering over 1,400 top US stocks.

In other recent news, CME Group reported its fourth-quarter 2024 earnings, achieving an adjusted earnings per share (EPS) of $2.52, which surpassed the forecast of $2.48. The company’s revenue for the quarter was consistent with expectations at $1.5 billion, contributing to a record annual revenue of $6.1 billion, marking a 10% increase from the previous year. UBS analyst Alex Kromm raised CME Group’s price target to $290, maintaining a Buy rating, citing expectations of robust trading volumes and fee increases as key revenue drivers. RBC Capital Markets also adjusted its outlook, increasing the price target to $269 from $235 while maintaining a Sector Perform rating, highlighting potential benefits from cash requirements and surcharges.

Keefe, Bruyette & Woods maintained a Market Perform rating on CME Group, noting that the company’s earnings exceeded both their own and consensus estimates. The firm’s analyst, Kyle Voigt, slightly raised the 12-month price target to $257, attributing the earnings beat to higher transaction revenues and increased equity income. Additionally, CME Group’s strategic investments in cloud migration and new product development were emphasized as ongoing drivers of innovation and growth. The company also provided guidance for 2025, expecting adjusted operating expenses of $1.65 billion and capital expenditures of $90 million, with anticipated revenue increases from transaction fee adjustments and market data fees.

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