CHICAGO - Cboe Global Markets, Inc. (NYSE:CBOE:CBOE), a prominent player in the derivatives and securities exchange industry, has released its trading volume statistics for June 2024, alongside second-quarter revenue per contract/net revenue capture guidance.
For June, Cboe saw a mix of increases and decreases in trading volumes across its various business lines when compared to the same month last year. Notably, there was an 18.8% rise in futures contracts and a significant 80.6% jump in Japanese equities traded.
Canadian equities also experienced a robust growth of 28.4%. However, the exchange reported a 4.0% decline in multiply-listed options contracts and a 5.4% decrease in both U.S. equities on-exchange and U.S. equities off-exchange matched shares.
Cboe Europe achieved a notable milestone with a record monthly market share of 47%, surpassing its previous best of 46% in April 2024. Moreover, Cboe Japan set a new quarterly record for lit market share at 5.5%, marking its second consecutive quarter of record market share. Global FX also reported a new quarterly record for average daily notional value traded, reaching $47.7 billion.
The company provided preliminary second-quarter 2024 revenue capture guidance across various financial products. For example, multiply-listed options are projected to generate an average revenue per contract (RPC (NYSE:RES)) of $0.063, while index options may see an RPC of $0.896. Futures contracts are expected to bring in $1.750 per contract. The guidance reflects a three-month rolling average and is reported on a one-month lag.
Cboe Global Markets emphasizes its commitment to delivering advanced trading, clearing, and investment solutions worldwide. The company's global reach extends to equities, derivatives, FX, and digital assets in North America, Europe, and Asia Pacific.
The information in this article is based on a press release statement from Cboe Global Markets. The projected RPC/net capture metrics are estimates and subject to change, and there can be no assurance that the final RPC for the period ending June 30, 2024, will not differ materially from these projections.
In other recent news, CBOE Holdings has reported a 7% increase in net revenues to a record $502 million and a 13% rise in adjusted diluted earnings per share to $2.15 in the first quarter of 2024. The company's derivatives and Data and Access Solutions businesses significantly contributed to this growth. In addition, CBOE has announced plans to refocus its digital asset business and unify its global clearing operations.
JPMorgan (NYSE:JPM) has raised its price target for CBOE Holdings from $163 to $166, maintaining an Underweight rating on the stock. This adjustment follows the release of CBOE's Q1 earnings and the latest trading statistics. Meanwhile, Rosenblatt Securities has also adjusted its outlook, increasing the firm's price target to $205 from the previous $200, while maintaining a Buy rating.
These recent developments indicate a robust start to the year for CBOE Holdings. The company's management has narrowed its full-year 2024 adjusted operating expenses guidance to between $795 million and $805 million. This, along with record trading volumes, signifies a significant uptick in activity.
InvestingPro Insights
As Cboe Global Markets (CBOE:CBOE) navigates the financial landscape, the company has demonstrated a consistent approach to shareholder returns. An InvestingPro Tip reveals that Cboe has raised its dividend for 9 consecutive years, signaling a commitment to returning value to shareholders. This is further underscored by the company's track record of maintaining dividend payments for 15 consecutive years, even as analysts anticipate a sales decline in the current year.
From a valuation standpoint, Cboe is trading at a low P/E ratio relative to near-term earnings growth, with a reported P/E ratio of 22.94. This could indicate that the stock is undervalued considering its earnings trajectory. Moreover, the company's PEG ratio stands at an attractive 0.14, suggesting potential for investment upside when factoring in growth estimates.
Despite the challenges in revenue growth, with a reported decrease of 5.78% over the last twelve months as of Q1 2024, Cboe maintains a strong gross profit margin of 52.07%. This robust margin reflects the company's ability to efficiently manage its cost of goods sold relative to its revenue.
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