Benzinga - by Benzinga Insights, Benzinga Staff Writer.
It was revealed in a recent SEC filing that Dennis Suskind, Director at CME Gr (NASDAQ:CME) made a noteworthy insider purchase on June 27,.
What Happened: Suskind's recent purchase of 748 shares of CME Gr, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, reflects confidence in the company's potential. The total transaction value is $145,186.
At Thursday morning, CME Gr shares are up by 1.67%, trading at $198.46.
All You Need to Know About CME Gr Based in Chicago, CME Group operates exchanges giving investors, suppliers, and businesses the ability to trade futures and derivatives based on interest rates, equity indexes, foreign currencies, energy, metals, and commodities. The CME was founded in 1898 and in 2002 completed its initial public offering. Since then, CME Group has consolidated parts of the industry by merging with crosstown rival, CBOT Holdings in 2007 before acquiring Nymex Holdings in 2008 and NEX in 2018. In addition, the company has a 27% stake in S&P Dow Jones Indices, making the Chicago Mercantile Exchange the exclusive venue to trade and clear S&P futures contracts. Through CME's acquisition of NEX in 2018, it has also expanded into cash foreign exchange, fixed income trading, and collateral optimization.
CME Gr: Delving into Financials Positive Revenue Trend: Examining CME Gr's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.21% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Evaluating Earnings Performance:
- Gross Margin: With a high gross margin of 86.16%, the company demonstrates effective cost control and strong profitability relative to its peers.
- Earnings per Share (EPS): CME Gr's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.35.
Financial Valuation:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 22.23 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 12.48 as compared to the industry average, the stock might be considered overvalued based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): CME Gr's EV/EBITDA ratio, lower than industry averages at 15.62, indicates attractively priced shares.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Illuminating the Importance of Insider Transactions While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
A Deep Dive into Insider Transaction Codes Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of CME Gr's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.