Zacks Investment Research Lowers Nasdaq Inc. (NDAQ) to Sell
According to Zacks, “Intense competition, currency fluctuations and pricing continue to weigh on Nasdaq’s performance. Also, the Zacks Consensus Estimate has been witnessing downward revisions, with the same dipping 0.5% for both 2016 and 2017, over the last 60 days. Nonetheless, Nasdaq remains focused on growth through acquisitions and organic initiatives that enable entry and cross-selling opportunities into new markets at a low-cost and highly-flexible platform. The company displays its prudence by accelerating its non-transaction revenue base, which includes technology, listing and information revenues. This has been fueling organic growth for the securities exchange. In fact, management projects consistent mid-single-digit organic growth over the next three to five years. Nasdaq is improving leverage that supports accelerated capital deployment, thereby boosting investor confidence.”
A number of other analysts have also issued reports on NDAQ. Credit Suisse Group AG reiterated a buy rating and set a $68.00 price target on shares of Nasdaq in a research note on Wednesday, June 29th. Evercore ISI lowered shares of Nasdaq from a buy rating to a hold rating and cut their price target for the stock from $69.00 to $68.00 in a research note on Tuesday, July 5th. Barclays PLC cut their price target on shares of Nasdaq from $74.00 to $73.00 and set an overweight rating on the stock in a research note on Thursday, July 7th. Deutsche Bank AG boosted their price target on shares of Nasdaq from $72.00 to $73.00 and gave the stock a buy rating in a research note on Monday, July 18th. Finally, Jefferies Group boosted their price target on shares of Nasdaq from $58.00 to $68.00 and gave the stock a hold rating in a research note on Thursday, July 28th. One analyst has rated the stock with a sell rating, eight have issued a hold rating and seven have given a buy rating to the company. The company presently has an average rating of Hold and an average target price of $69.67.
Nasdaq (NASDAQ:NDAQ) traded down 0.69% during mid-day trading on Wednesday, reaching $66.57. 113,069 shares of the company were exchanged. The firm has a market capitalization of $11.01 billion, a P/E ratio of 23.05 and a beta of 0.81. Nasdaq has a 1-year low of $52.84 and a 1-year high of $71.92. The stock has a 50-day moving average of $69.52 and a 200 day moving average of $66.65.
Nasdaq (NASDAQ:NDAQ) last issued its quarterly earnings results on Wednesday, July 27th. The company reported $0.91 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.88 by $0.03. The company had revenue of $559 million for the quarter, compared to analyst estimates of $548 million. Nasdaq had a net margin of 13.79% and a return on equity of 10.76%. The business’s revenue for the quarter was up 7.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.83 earnings per share. Equities research analysts forecast that Nasdaq will post $3.71 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Friday, September 16th were issued a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 1.91%. The ex-dividend date of this dividend was Wednesday, September 14th. Nasdaq’s payout ratio is currently 44.44%.
In other news, insider Pc Nelson Griggs sold 2,945 shares of the stock in a transaction that occurred on Thursday, August 4th. The stock was sold at an average price of $71.52, for a total value of $210,626.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Robert Greifeld sold 199,480 shares of the stock in a transaction that occurred on Thursday, August 18th. The shares were sold at an average price of $70.28, for a total value of $14,019,454.40. Following the completion of the sale, the chief executive officer now directly owns 1,064,815 shares of the company’s stock, valued at $74,835,198.20. The disclosure for this sale can be found here. 2.20% of the stock is owned by insiders.
Several large investors have recently bought and sold shares of NDAQ. Northwestern Mutual Investment Management Company LLC increased its stake in Nasdaq by 0.3% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 4,393 shares of the company’s stock valued at $284,000 after buying an additional 13 shares during the last quarter. Smith Salley & Associates boosted its stake in Nasdaq by 0.3% in the second quarter. Smith Salley & Associates now owns 4,578 shares of the company’s stock valued at $296,000 after buying an additional 15 shares during the period. WESPAC Advisors SoCal LLC boosted its stake in Nasdaq by 0.3% in the second quarter. WESPAC Advisors SoCal LLC now owns 9,550 shares of the company’s stock valued at $618,000 after buying an additional 25 shares during the period. Mackenzie Financial Corp boosted its stake in Nasdaq by 0.6% in the second quarter. Mackenzie Financial Corp now owns 11,304 shares of the company’s stock valued at $731,000 after buying an additional 67 shares during the period. Finally, CENTRAL TRUST Co boosted its stake in Nasdaq by 1.3% in the second quarter. CENTRAL TRUST Co now owns 5,998 shares of the company’s stock valued at $388,000 after buying an additional 78 shares during the period. 74.21% of the stock is owned by institutional investors and hedge funds.
Nasdaq Company Profile
Nasdaq, Inc (Nasdaq), formerly The NASDAQ OMX Group, Inc, is a holding company. The Company is a provider of trading, clearing, exchange technology, regulatory, securities listing, information and public company services across approximately six continents. The Company manages, operates and provides its products and services through four segments: Market Services, Listing Services, Information Services and Technology Solutions.
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