Positive Signal: Phyllis M Lockett Shows Faith, Buying $145K In CME Group Stock

It was revealed in a recent SEC filing that Phyllis M Lockett, Board Member at CME Group CME made a noteworthy insider purchase on June 26,.

What Happened: Lockett made a significant move by purchasing 532 shares of CME Group as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $145,251.

CME Group shares are trading up 0.37% at $273.85 at the time of this writing on Friday morning.

Discovering CME Group: A Closer Look

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.

Understanding the Numbers: CME Group's Finances

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.

Insights into Profitability:

• Gross Margin: The company excels with a remarkable gross margin of 87.41%, indicating superior cost efficiency and profitability compared to its industry peers.

• 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.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 27.45 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 15.63 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 19.39, CME Group could be considered undervalued.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Unmasking the Significance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Navigating the World of Insider Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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.