Making a noteworthy insider sell on May 19, Charles P Carey, Director at CME Group CME, is reported in the latest SEC filing.
What Happened: After conducting a thorough analysis, Carey sold 3,000 shares of CME Group. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total transaction value is $817,680.
CME Group shares are trading up 0.34% at $277.22 at the time of this writing on Monday morning.
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 Milestones: CME Group’s Journey
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 10.38%. This indicates a notable increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.
Exploring Profitability:
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Gross Margin: The company maintains a high gross margin of 87.41%, indicating strong cost management and profitability compared to its peers.
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Earnings per Share (EPS): CME Group’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 2.63.
Debt Management: CME Group’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.13.
Understanding Financial Valuation:
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Price to Earnings (P/E) Ratio: CME Group’s P/E ratio of 27.8 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 15.83 suggests overvaluation in the eyes of investors, considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 19.63, CME Group presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization: Surpassing industry standards, the company’s market capitalization asserts its dominance in terms of size, suggesting a robust market position.
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The Relevance of Insider Transactions
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
A Closer Look at Important Transaction Codes
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
