William Shepard, a director at CME Group (CME), recently bought 278 shares. The buy increased his stake by less than 1 percent, and came to a total cost of $58,646.
The director was the most recent buyer with purchases in September 2023 and April 2023, each for similar amounts under $60,000. Several company directors and insiders, including the company CEO, were sellers of shares over the past year. The last buy from another insider came in December 2022.
In total, CME insiders own 0.4 percent of shares.
Shares have performed about in-line with the stock market in 2023, gaining about 25 percent. CME Group’s operations held up well as global markets rebounded last year.
Revenues rose 9 percent, and earnings grew by 10 percent. Even better, CME Group maintained a massive 57 percent profit margin.
Action to take: With the company’s strong operating profits and continuing growth, shares are likely to trend higher over time. Investors may want to buy shares now, slightly off their 52-week highs.
CME Group also pays about a 2.1 percent dividend yield at current prices.
For traders, shares have been rangebound over the past few months. But the longer trend is higher. The June $230 calls, last going for about $4.50, could see high double-digit returns on a break higher in the coming months.
Traders may want to wait for a down day in the market or shares to build a position.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.