Cboe Global Markets, Inc. (CBOE), located in Chicago, Illinois, is a top-tier global market infrastructure provider. With a market cap of $20.1 billion, Cboe manages a variety of equity, options, futures, and forex markets, providing innovative services to traders, investors, and institutions around the world.
Market Position and Strategy
As a large-cap stock, Cboe holds a significant place in the financial sector. The company is dedicated to maintaining market integrity and fostering innovation, which contributes to its ability to offer advanced trading solutions and market data. Cboe’s goal is to empower financial participants while enhancing efficiency across global financial markets.
Stock Performance Analysis
Currently, Cboe’s shares are trading 13.6% below their 52-week high of $221.66, reached on November 27. Over the past three months, the stock has suffered a decline of 8%, contrasting sharply with the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI), which has increased by 12.5% during the same period.
Looking at longer-term trends, CBOE has experienced an 11.2% increase over the last six months, yet this lags behind IAI’s impressive 23.6% return. In terms of annual performance, CBOE’s gain of 10.1% over the past 52 weeks is also below IAI’s noteworthy 37.1% increase.
Technical Indicators
Since early December, CBOE has remained consistently below its 50-day moving average, indicating a bearish trend. Despite this short-term slump, the stock has traded above its 200-day moving average since July.
Recent Earnings Report
On November 1, Cboe shares declined by 1.7% following the announcement of its Q3 earnings results. Notably, the company reported a record adjusted EPS of $2.22, marking an 8% year-over-year increase, along with record net revenue of $532.0 million—a reflection of an 11% growth.
Future Outlook and Analyst Ratings
In addition to these positive earnings, Cboe has raised its 2024 organic total net revenue growth target to between 7% and 9%, an upgrade from the previous 6% to 8% range. The company has reaffirmed its data and access solutions organic net revenue growth target at 7% to 10%.
In comparison, CBOE’s competitor, CME Group Inc. (CME), has performed impressively, gaining 13% over the past year. Analysts maintain a cautiously optimistic view of Cboe, pointing out the stock’s struggles relative to the wider sector. Currently, CBOE holds a consensus rating of “Moderate Buy” from 17 analysts, with a mean price target of $216.44, suggesting a potential upside of 13% from its current trading value.
On the date of publication, Rashmi Kumari did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All data and information provided are for informational purposes only. For further details, please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
