Insider Activity Report: CME Group (CME)

William Shepard, a director at CME Group (CME), recently bought 294 shares. The buy increased his stake by about 1%, and came to a total cost of $63,231.

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  • This is Shepard’s second buy of the year, following a 1,390 share buy in January for $281,368. Shepard was a repeat buyer last year, and other company directors were buyers in 2022. Otherwise, CME Group executives have been regular sellers of shares.

    Overall, CME Group insiders own 0.5% of shares.

    The stock and financial exchange owner is up 13% in the past year, lagging the overall market. That’s in spite of a 19% jump in revenues, as trading picked in 2023 compared to 2022’s bear market.

    CME Group also grew earnings by 28%, and the company’s limited competition gives the company a hefty 58% profit margin.

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  • Shares are reasonably priced at about 22 times earnings, in line with the overall market.

    Action to take: Investors may like CME Group shares at current prices. There will likely be further long-term gains from a multi-year bull market ahead.

    CME Group also pays a dividend with a current yield of about 4%.

    For traders, shares are in an uptrend, and can likely continue higher as investors become more active in the stock market.

    The June $230 calls, last trading for about $2.25, could see mid-to-high double-digit returns in the coming months.


    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.

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