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Are CME Group Inc. (NASDAQ:CME)’s Fundamentals Enough to Outperform

CME Group Inc. (NASDAQ:CME) has a beta of 0.44, a 12-month trailing P/E ratio of 40.28, and a growth ratio of 8.04. The stock’s Relative Strength Index (RSI) is 58.33, with weekly volatility at 1.87% and ATR at 4.00. The CME stock’s 52-week price range has touched low of $144.85 and a $219.72 high. Its shares traded lower over the last trading session, losing -1.12% on 05/25/21. The shares fell to a low of $214.41 before closing at $214.88. Intraday shares traded counted 1.18 million, which was 23.46% higher than its 30-day average trading volume of 1.54M. CME’s previous close was $217.31 while the outstanding shares total 358.15M.

Investors have identified the Financial Data & Stock Exchanges company CME Group Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $76.54 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

CME Group Inc. (CME) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 126.75 billion total, with 124.22 billion as their total liabilities.

CME were able to record 574.2 million as free cash flow during the 08/04/2021 quarter of the year, this saw their quarterly net cash flow reduce by -664.5 million. In cash movements, the company had a total of 602.7 million as operating cash flow.

Potential earnings growth for CME Group Inc. (CME)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/04/2021 quarter of the year, CME Group Inc. recorded a total of 1.25 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -21.45% coming in sequential stages and their sales for the 08/04/2021 quarter increasing by 12.35%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.25 billion trying to sell their products during the last quarter, with the result yielding a gross income of 528.2 million. This allows shareholders to hold on to 358.15M with the recently reported earning now reading 1.60 cents per share. This is a figure that compared to analyst’s prediction for their 08/04/2021 (1.79 cents a share).

Having a look at the company’s valuation, the company is expected to record 7.23 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CME sounds very interesting.

Is the stock of CME attractive?

In related news, Chairman and CEO, DUFFY TERRENCE A sold 29,000 shares of the company’s stock in a transaction that recorded on May 19. The sale was performed at an average price of 210.83, for a total value of 6,114,070. As the sale deal closes, the Sr MD Chief Operating Officer, Holzrichter Julie now sold 6,000 shares of the company’s stock, valued at 1,279,740. Also, Director, GEPSMAN MARTIN J sold 1,500 shares of the company’s stock in a deal that was recorded on Mar 11. The shares were price at an average price of 205.46 per share, with a total market value of 308,190. Following this completion of acquisition, the Sr MD & Chief HR Officer, Piell Hilda Harris now holds 1,500 shares of the company’s stock, valued at 319,500. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.

8 out of 21 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on CME Group Inc.. 1 analysts has assigned a Sell rating on the CME stock. The 12-month mean consensus price target for the company’s shares has been set at $207.44.

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