Charles P Carey's Recent Buy: Acquires $239K In CME Group Stock

On June 26, Charles P Carey, Board Member at CME Group CME executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled that Carey made a notable purchase of 879 shares of CME Group, valuing at $239,993.

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.

CME Group's Economic Impact: An Analysis

Revenue Growth: Over the 3 months period, CME Group showcased positive performance, achieving a revenue growth rate of 10.38% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Evaluating Earnings Performance:

• 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 is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 2.63.

Debt Management: CME Group's debt-to-equity ratio is below the industry average at 0.13, reflecting a lower dependency on debt financing and a more conservative financial approach.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 27.45, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• 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): CME Group's EV/EBITDA ratio at 19.39 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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Exploring the Significance of Insider Trading

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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.

Understanding Crucial 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.