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NEW YORK - MarketAxess Holdings Inc. (NASDAQ:MKTX), an $8.1 billion market cap electronic trading platform currently rated as financially "GOOD" by InvestingPro, reported record trading volumes across multiple product categories for the second quarter of 2025, with total trading average daily volume (ADV) reaching $49.0 billion, a 43% increase compared to the same period last year. According to InvestingPro analysis, the stock appears undervalued at current levels, making it an interesting watch for value investors.
The electronic fixed-income trading platform operator, which has maintained consistent revenue growth of 7.3% over the last twelve months, saw its total credit ADV rise 22% to $16.8 billion, while total rates ADV surged 58% to $32.2 billion. The company surpassed $1 trillion in total credit quarterly trading volume for the first time, alongside a record $2 trillion in total rates volume.
U.S. high-grade ADV reached $7.8 billion, up 21% from the second quarter of 2024, while emerging markets ADV grew 20% to $4.0 billion. Eurobonds ADV increased 27% to $2.7 billion.
The company’s portfolio trading channel showed significant growth, with total portfolio trading ADV increasing 69% to $1.5 billion. MarketAxess estimated its market share of U.S. credit portfolio trading at 17.5%, up from 15.1% in the prior year.
Block trading volumes were particularly strong, with U.S. credit block trading ADV up 37%, emerging markets block trading ADV rising 27%, and eurobonds block trading ADV doubling compared to the second quarter of 2024.
The company’s dealer-initiated channel saw ADV increase 40% to $1.8 billion, including record levels of eurobonds activity.
Variable transaction fees per million for total credit declined 7% year-over-year to $138, primarily due to protocol mix, while total rates fees per million decreased 12% to $3.90, driven by product mix changes.
According to the press release statement, MarketAxess’ strong year-over-year volume growth continued in June as volatility moderated through the quarter. The company’s robust performance is supported by strong fundamentals, with InvestingPro data showing excellent cash flow coverage of interest payments and liquid assets exceeding short-term obligations. For deeper insights into MarketAxess’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering over 1,400 top US stocks.
In other recent news, MarketAxess Holdings Inc. reported its first-quarter 2025 earnings, surpassing expectations with diluted earnings per share (EPS) of $1.87, compared to the projected $1.80. However, the company’s revenue fell short, reaching $208.6 million against the forecasted $211.5 million. This mixed performance highlights the company’s ability to manage costs effectively, even as revenue growth lags. Additionally, MarketAxess has completed the acquisition of a 90% majority stake in the RFQ-hub platform, enhancing its capabilities in multi-asset and multi-dealer request for quote transactions. This strategic move is expected to bolster MarketAxess’s offerings in the fixed-income ETFs and credit futures space. Keefe, Bruyette & Woods recently raised MarketAxess’s stock price target to $226, maintaining a Market Perform rating, citing a stronger-than-anticipated industry volume environment. The firm also noted the positive impact of the RFQ-hub acquisition on MarketAxess’s business development. Furthermore, MarketAxess announced the appointment of Dean Berry as Group Chief Operating Officer and CEO for the EMEA and APAC regions, a move aimed at fostering innovation and efficiency in its operations.
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