MarketAxess Holdings Inc. (MKTX) Lowered to “Sell” at Zacks Investment Research
According to Zacks, “MarketAxess Holdings’ expense management continues to raise concerns. Increase in employee compensation and benefits, along with other operating expenses, has drained the company's bottom line. Intense competition due to increased market consolidation and new entrants has reduced the company's market share. The company is expected to release third quarter earnings on Oct 19, 2016. The Zacks Consensus earning estimate for the quarter is pegged at $0.79 per share which translates into year over year growth rate of 31.7%. However, the company is poised to grow over the long term from a consistent increase in trading volumes, launch of new products and increasing client base. The acquisition of Xtracker, other alliances, continued growth in Europe should also support top-line growth. Further, MarketAxess enjoys strong liquidity and a steady capital position, which enables it to buy back shares and increase dividend from time to time.”
A number of other research firms have also recently issued reports on MKTX. William Blair started coverage on shares of MarketAxess Holdings in a research note on Monday, June 20th. They issued a market perform rating on the stock. Citigroup Inc. cut shares of MarketAxess Holdings to a market perform rating in a research note on Friday, July 15th. They noted that the move was a valuation call. Credit Suisse Group AG reissued a sell rating and issued a $106.00 price target on shares of MarketAxess Holdings in a research note on Friday, July 29th. Raymond James Financial Inc. cut shares of MarketAxess Holdings from an outperform rating to a market perform rating in a research note on Friday, July 15th. Finally, Keefe, Bruyette & Woods lifted their price target on shares of MarketAxess Holdings from $165.00 to $175.00 and gave the company an outperform rating in a research note on Friday, July 29th. Three analysts have rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company’s stock. MarketAxess Holdings has a consensus rating of Hold and a consensus target price of $140.75.
MarketAxess Holdings (NASDAQ:MKTX) traded down 0.85% on Thursday, hitting $158.97. 127,882 shares of the stock were exchanged. The firm has a market cap of $5.98 billion, a PE ratio of 54.82 and a beta of 0.65. MarketAxess Holdings has a 52-week low of $86.19 and a 52-week high of $178.21. The stock’s 50 day moving average price is $168.37 and its 200 day moving average price is $146.62.
MarketAxess Holdings (NASDAQ:MKTX) last released its quarterly earnings results on Thursday, July 28th. The company reported $0.88 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.85 by $0.03. MarketAxess Holdings had a net margin of 32.52% and a return on equity of 27.14%. The firm had revenue of $96.60 million for the quarter, compared to analysts’ expectations of $93.98 million. During the same quarter last year, the company earned $0.64 EPS. The firm’s revenue for the quarter was up 27.9% compared to the same quarter last year. Equities research analysts forecast that MarketAxess Holdings will post $3.22 earnings per share for the current year.
In other news, CEO Richard M. Mcvey sold 30,000 shares of MarketAxess Holdings stock in a transaction on Monday, August 8th. The stock was sold at an average price of $162.33, for a total transaction of $4,869,900.00. Following the transaction, the chief executive officer now owns 1,091,457 shares in the company, valued at approximately $177,176,214.81. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Antonio L. Delise sold 10,000 shares of MarketAxess Holdings stock in a transaction on Friday, August 19th. The stock was sold at an average price of $166.79, for a total value of $1,667,900.00. Following the transaction, the chief financial officer now owns 59,494 shares in the company, valued at approximately $9,923,004.26. The disclosure for this sale can be found here. Company insiders own 4.51% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of MKTX. Aperio Group LLC raised its position in MarketAxess Holdings by 8.7% in the first quarter. Aperio Group LLC now owns 13,884 shares of the company’s stock valued at $1,733,000 after buying an additional 1,111 shares in the last quarter. BlackRock Inc. raised its position in MarketAxess Holdings by 9.2% in the first quarter. BlackRock Inc. now owns 14,541 shares of the company’s stock valued at $1,815,000 after buying an additional 1,230 shares in the last quarter. BlackRock Group LTD raised its position in MarketAxess Holdings by 32.9% in the first quarter. BlackRock Group LTD now owns 28,177 shares of the company’s stock valued at $3,517,000 after buying an additional 6,974 shares in the last quarter. BlackRock Institutional Trust Company N.A. raised its position in MarketAxess Holdings by 0.3% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 1,089,927 shares of the company’s stock valued at $136,056,000 after buying an additional 3,269 shares in the last quarter. Finally, Columbia Partners L L C Investment Management raised its position in MarketAxess Holdings by 10.0% in the first quarter. Columbia Partners L L C Investment Management now owns 14,702 shares of the company’s stock valued at $1,835,000 after buying an additional 1,331 shares in the last quarter. Institutional investors and hedge funds own 92.37% of the company’s stock.
About MarketAxess Holdings
MarketAxess Holdings Inc (MarketAxess) is an electronic trading platform. The Company operates as an electronic multi-party platform for the trading of fixed-income securities and provides related data, analytics, compliance tools and post-trade services. The Company’s multi-dealer trading platform allows its institutional investor clients to request bids or offers from its broker-dealer clients and execute trades with the broker-dealer of their choice from among those that choose to respond.
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