Daniel G Kaye's Recent Buy: Acquires $145K In CME Group Stock

A notable insider purchase on June 26, was reported by Daniel G Kaye, Board Member at CME Group CME, based on the most recent SEC filing.

What Happened: Kaye demonstrated confidence in CME Group by purchasing 532 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the transaction is $145,251.

Monitoring the market, CME Group's shares up by 0.37% at $273.85 during Friday's morning.

Delving into CME Group's Background

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.

CME Group's Financial Performance

Revenue Growth: CME Group's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 10.38%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Exploring Profitability:

• Gross Margin: The company maintains a high gross margin of 87.41%, indicating strong cost management and profitability compared to its 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 Metrics:

• Price to Earnings (P/E) Ratio: CME Group's P/E ratio of 27.45 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 15.63 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 19.39, CME Group presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Why Insider Activity Matters in Finance

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

Navigating the World of Insider Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.