MarketAxess Holdings Inc. (NASDAQ:MKTX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “MarketAxess Holdings 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. However, its 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%.”
MKTX has been the subject of a number of other research reports. Keefe, Bruyette & Woods boosted their price objective on shares of MarketAxess Holdings from $165.00 to $175.00 and gave the company an “outperform” rating in a research report on Friday, July 29th. Credit Suisse Group AG reissued a “sell” rating on shares of MarketAxess Holdings in a research report on Tuesday, June 28th. William Blair assumed coverage on shares of MarketAxess Holdings in a research report on Monday, June 20th. They issued a “market perform” rating for the company. Raymond James Financial Inc. downgraded shares of MarketAxess Holdings from an “outperform” rating to a “market perform” rating in a report on Friday, July 15th. Finally, Citigroup Inc. downgraded shares of MarketAxess Holdings to a “market perform” rating in a report on Friday, July 15th. They noted that the move was a valuation call. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average target price of $140.75.
Shares of MarketAxess Holdings (NASDAQ:MKTX) traded up 0.82% during midday trading on Tuesday, hitting $169.26. 146,786 shares of the stock were exchanged. The firm has a 50 day moving average of $167.82 and a 200 day moving average of $144.56. MarketAxess Holdings has a 12-month low of $86.19 and a 12-month high of $178.21. The firm has a market cap of $6.37 billion, a P/E ratio of 58.37 and a beta of 0.76.
MarketAxess Holdings (NASDAQ:MKTX) last posted its quarterly earnings data on Thursday, July 28th. The company reported $0.88 earnings per share for the quarter, beating analysts’ consensus estimates of $0.85 by $0.03. The business earned $96.60 million during the quarter, compared to analyst estimates of $93.98 million. MarketAxess Holdings had a net margin of 32.52% and a return on equity of 27.14%. The company’s revenue was up 27.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.64 earnings per share. Equities analysts forecast that MarketAxess Holdings will post $3.23 EPS for the current fiscal year.
In other MarketAxess Holdings news, CEO Richard M. Mcvey sold 30,000 shares of the business’s stock in a transaction that occurred on Monday, August 8th. The shares were sold at an average price of $162.33, for a total transaction of $4,869,900.00. Following the completion of the sale, the chief executive officer now directly owns 1,091,457 shares in the company, valued at $177,176,214.81. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Antonio L. Delise sold 10,000 shares of the business’s stock in a transaction that occurred on Friday, August 19th. The stock was sold at an average price of $166.79, for a total transaction of $1,667,900.00. Following the sale, the chief financial officer now owns 59,494 shares of the company’s stock, valued at $9,923,004.26. The disclosure for this sale can be found here. Company insiders own 4.51% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in MKTX. Aristotle Capital Boston LLC increased its stake in MarketAxess Holdings by 4.6% in the second quarter. Aristotle Capital Boston LLC now owns 25,861 shares of the company’s stock valued at $3,760,000 after buying an additional 1,138 shares in the last quarter. Geode Capital Management LLC increased its stake in MarketAxess Holdings by 6.4% in the first quarter. Geode Capital Management LLC now owns 258,446 shares of the company’s stock valued at $32,260,000 after buying an additional 15,645 shares in the last quarter. State Street Corp increased its stake in MarketAxess Holdings by 2.8% in the first quarter. State Street Corp now owns 1,232,111 shares of the company’s stock valued at $153,799,000 after buying an additional 33,815 shares in the last quarter. BlackRock Group LTD increased its stake 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. Finally, I.G. Investment Management LTD. increased its stake in MarketAxess Holdings by 1.7% in the second quarter. I.G. Investment Management LTD. now owns 5,941 shares of the company’s stock valued at $864,000 after buying an additional 98 shares in the last quarter. Institutional investors 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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for MarketAxess Holdings Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MarketAxess Holdings Inc. and related companies with MarketBeat.com's FREE daily email newsletter.