Zacks Investment Research Downgrades MarketAxess (MKTX) to Sell

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Zacks Investment Research lowered shares of MarketAxess (NASDAQ:MKTX) from a hold rating to a sell rating in a report released on Friday morning.

According to Zacks, “MarketAxess Holdings’ revenues have been consistently rising for the past several years on the back of a steady increase in commission. Its growth strategies such as acquisitions and alliances have also contributed to its top-line improvement. Its product suite of the highly demanded U.S. high-grade floating rate and other credit bonds are likely to broaden its scope for volume growth. Shares of the company have underperformed its industry, year to date. Escalating costs remain a woe for the company for quite some time. Moreover, with the ongoing investments in several areas, the  expenses are going to increase in the upcoming quarters.”

Several other analysts have also recently weighed in on MKTX. BidaskClub raised MarketAxess from a hold rating to a buy rating in a report on Tuesday, October 23rd. Buckingham Research started coverage on MarketAxess in a research note on Thursday. They set a neutral rating on the stock. Barclays reaffirmed a hold rating and issued a $198.00 target price on shares of MarketAxess in a research report on Friday, October 12th. Goldman Sachs Group initiated coverage on shares of MarketAxess in a report on Monday, November 5th. They set a sell rating on the stock. Finally, ValuEngine upgraded shares of MarketAxess from a hold rating to a buy rating in a research report on Thursday, October 4th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and one has given a buy rating to the stock. The stock presently has a consensus rating of Hold and an average target price of $215.50.

Shares of MKTX stock opened at $212.59 on Friday. The firm has a market cap of $8.01 billion, a PE ratio of 54.51, a price-to-earnings-growth ratio of 8.26 and a beta of 0.18. MarketAxess has a 1 year low of $172.09 and a 1 year high of $231.33.

MarketAxess (NASDAQ:MKTX) last issued its earnings results on Wednesday, October 24th. The financial services provider reported $1.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.93 by $0.09. The business had revenue of $101.44 million during the quarter, compared to analysts’ expectations of $101.19 million. MarketAxess had a net margin of 37.97% and a return on equity of 29.40%. The company’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.90 EPS. On average, sell-side analysts forecast that MarketAxess will post 4.51 earnings per share for the current year.

In related news, CEO Richard M. Mcvey sold 23,842 shares of MarketAxess stock in a transaction dated Tuesday, October 30th. The stock was sold at an average price of $211.93, for a total value of $5,052,835.06. Following the transaction, the chief executive officer now owns 1,054,986 shares of the company’s stock, valued at approximately $223,583,182.98. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Kevin M. Mcpherson sold 2,500 shares of the business’s stock in a transaction that occurred on Tuesday, November 20th. The stock was sold at an average price of $216.89, for a total value of $542,225.00. The disclosure for this sale can be found here. Insiders own 3.52% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in MKTX. Scout Investments Inc. bought a new position in MarketAxess in the 4th quarter worth about $18,505,000. First Hawaiian Bank raised its position in MarketAxess by 170.7% during the 4th quarter. First Hawaiian Bank now owns 1,719 shares of the financial services provider’s stock worth $363,000 after buying an additional 1,084 shares during the last quarter. Retirement Systems of Alabama boosted its stake in shares of MarketAxess by 0.3% during the 4th quarter. Retirement Systems of Alabama now owns 58,541 shares of the financial services provider’s stock worth $12,370,000 after purchasing an additional 188 shares during the last quarter. Paradigm Asset Management Co. LLC raised its holdings in MarketAxess by 11.8% in the third quarter. Paradigm Asset Management Co. LLC now owns 950 shares of the financial services provider’s stock valued at $170,000 after buying an additional 100 shares during the period. Finally, Vanguard Group Inc boosted its holdings in MarketAxess by 1.6% in the third quarter. Vanguard Group Inc now owns 3,174,912 shares of the financial services provider’s stock worth $566,689,000 after purchasing an additional 48,627 shares during the period. 99.17% of the stock is owned by institutional investors and hedge funds.

About MarketAxess

MarketAxess Holdings Inc, together with its subsidiaries, operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments worldwide. It offers institutional investor and broker-dealer the access to global liquidity in U.S.

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