Cboe Global Markets (NASDAQ:CBOE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “Stiff competition and escalating costs remain key concerns for Cboe Global. Management estimates operating expenses in the range of $420-$428 million, up 1-3% over 2017 and capital expenditure between $50 million and $55 million in 2018. Nonetheless, the company remains focused on expansion of its proprietary product offering while extending its global customer reach. Diversified product portfolio and core competencies fuel its growth prospects. Also, the acquisition of Bats Global Markets is a strategic fit as it is likely to broaden and diversify Cboe Global’s product portfolio and boost margins, besides generating expense synergies. It enjoys a strong liquidity and remains focused on improving its leverage ratio. Also, shares of Cboe Global have outperformed the industry in a year’s time.”
CBOE has been the subject of several other research reports. Wells Fargo lifted their price target on shares of Cboe Global Markets from $4.75 to $138.00 and gave the stock an “outperform” rating in a research report on Friday, January 5th. Deutsche Bank boosted their price objective on shares of Cboe Global Markets from $127.00 to $128.00 and gave the company a “buy” rating in a report on Tuesday, March 6th. BidaskClub upgraded shares of Cboe Global Markets from a “hold” rating to a “buy” rating in a report on Friday, January 26th. Keefe, Bruyette & Woods restated a “hold” rating and set a $130.00 price objective on shares of Cboe Global Markets in a report on Friday, December 22nd. Finally, UBS restated a “buy” rating and set a $120.00 price objective (down previously from $136.00) on shares of Cboe Global Markets in a report on Tuesday, February 13th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and five have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $120.09.
Cboe Global Markets (NASDAQ:CBOE) last issued its quarterly earnings results on Friday, February 9th. The financial services provider reported $0.87 EPS for the quarter, missing the consensus estimate of $0.88 by ($0.01). Cboe Global Markets had a return on equity of 12.74% and a net margin of 17.80%. The business had revenue of $265.60 million for the quarter, compared to analyst estimates of $267.25 million. During the same quarter in the prior year, the firm earned $0.63 EPS. The firm’s quarterly revenue was up 85.7% compared to the same quarter last year. sell-side analysts anticipate that Cboe Global Markets will post 4.64 EPS for the current year.
Cboe Global Markets declared that its Board of Directors has authorized a share buyback plan on Tuesday, February 27th that authorizes the company to repurchase $150.00 million in outstanding shares. This repurchase authorization authorizes the financial services provider to buy shares of its stock through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its stock is undervalued.
Institutional investors and hedge funds have recently made changes to their positions in the business. Assetmark Inc. bought a new position in Cboe Global Markets in the fourth quarter valued at approximately $106,000. SeaCrest Wealth Management LLC bought a new position in Cboe Global Markets in the fourth quarter valued at approximately $143,000. AlphaOne Investment Services LLC bought a new position in Cboe Global Markets in the fourth quarter valued at approximately $162,000. Mitsubishi UFJ Securities Holdings Co. Ltd. lifted its stake in Cboe Global Markets by 240.0% in the fourth quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. now owns 1,360 shares of the financial services provider’s stock valued at $169,000 after buying an additional 960 shares in the last quarter. Finally, Parallel Advisors LLC lifted its stake in Cboe Global Markets by 197.7% in the fourth quarter. Parallel Advisors LLC now owns 1,581 shares of the financial services provider’s stock valued at $197,000 after buying an additional 1,050 shares in the last quarter. 84.01% of the stock is currently owned by hedge funds and other institutional investors.
ILLEGAL ACTIVITY NOTICE: “Cboe Global Markets (CBOE) Downgraded by Zacks Investment Research” was published by Week Herald and is the property of of Week Herald. If you are reading this piece of content on another site, it was illegally stolen and republished in violation of U.S. & international copyright laws. The legal version of this piece of content can be viewed at https://weekherald.com/2018/03/20/cboe-global-markets-cboe-downgraded-by-zacks-investment-research.html.
About Cboe Global Markets
Cboe Global Markets, Inc, formerly CBOE Holdings, Inc, is a holding company. The Company provides trading and investment solutions to investors around the world. It offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, United States and European equities, exchange-traded products (ETPs), global foreign exchange (FX) and multi-asset volatility products based on the Cboe Volatility Index (VIX Index).
Receive News & Ratings for Cboe Global Markets Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cboe Global Markets and related companies with MarketBeat.com's FREE daily email newsletter.