On April 28, a recent SEC filing unveiled that Larry G Gerdes, Board Member at CME Group CME made an insider sell.
What Happened: Gerdes’s decision to sell 4,000 shares of CME Group was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $1,060,441.
During Tuesday’s morning session, CME Group shares up by 0.27%, currently priced at $268.63.
Unveiling the Story Behind CME Group
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 Chicago Mercantile Exchange was founded in 1898 and in 2002 completed its IPO. 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, it also expanded into cash foreign exchange, fixed-income trading, and collateral optimization.
Financial Insights: CME Group
Revenue Growth: CME Group displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 7.67%. This indicates a notable increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.
Interpreting Earnings Metrics:
-
Gross Margin: Achieving a high gross margin of 87.41%, the company performs well in terms of cost management and profitability within its sector.
-
Earnings per Share (EPS): CME Group’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.63.
Debt Management: With a below-average debt-to-equity ratio of 0.13, CME Group adopts a prudent financial strategy, indicating a balanced approach to debt management.
Evaluating Valuation:
-
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 26.95 is lower than the industry average, indicating potential undervaluation for the stock.
-
Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 15.35 suggests overvaluation in the eyes of investors, considering sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): CME Group’s EV/EBITDA ratio, lower than industry averages at 19.05, indicates attractively priced shares.
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Illuminating the Importance of Insider Transactions
Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Understanding Crucial Transaction Codes
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Group’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
