According to Zacks, “Shares of Nasdaq have underperformed the industry in a year’s time. The company has been witnessing elevated expenses, which limit margin expansion. High debt level induced increase in interest expenses. Leverage ratio and interest coverage ratio compare unfavorably with the industry. It estimates 2019 non-GAAP operating expenses in the range of $1.29-$1.33 billion. Nonetheless, the company has been successful at maximizing opportunities as a technology and analytics provider and growing core marketplace businesses. It remains focused on growth via acquisitions and organic initiatives, enabling its entry into new markets and gaining and cross-selling opportunities. It has also been ramping up non-transaction revenue base. Its strong balance sheet helps it to invest in growth opportunities and engage in shareholder-friendly moves.”
NDAQ has been the topic of several other research reports. BidaskClub upgraded shares of Nasdaq from a hold rating to a buy rating in a research report on Thursday, May 9th. Raymond James reduced their price target on shares of Nasdaq from $97.00 to $96.00 and set an outperform rating on the stock in a research report on Tuesday, March 5th. UBS Group boosted their price target on shares of Nasdaq from $100.00 to $103.00 and gave the company a buy rating in a research report on Thursday, April 25th. Finally, Argus assumed coverage on shares of Nasdaq in a research report on Wednesday, February 6th. They set a buy rating and a $97.00 price target on the stock. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and seven have issued a buy rating to the company. The stock currently has a consensus rating of Hold and a consensus price target of $97.92.
Nasdaq (NASDAQ:NDAQ) last announced its quarterly earnings results on Wednesday, April 24th. The financial services provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.05. Nasdaq had a net margin of 12.67% and a return on equity of 14.60%. The company had revenue of $638.00 million for the quarter, compared to analysts’ expectations of $632.71 million. During the same quarter in the previous year, the company earned $1.22 earnings per share. Nasdaq’s quarterly revenue was down 13.2% on a year-over-year basis. As a group, equities analysts predict that Nasdaq will post 4.91 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 28th. Shareholders of record on Friday, June 14th will be issued a $0.47 dividend. This represents a $1.88 dividend on an annualized basis and a yield of 2.09%. The ex-dividend date is Thursday, June 13th. This is a boost from Nasdaq’s previous quarterly dividend of $0.44. Nasdaq’s dividend payout ratio is 36.36%.
In other Nasdaq news, Director Lars Wedenborn sold 1,946 shares of the company’s stock in a transaction dated Thursday, May 16th. The shares were sold at an average price of $90.36, for a total value of $175,840.56. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Thomas A. Wittman sold 13,561 shares of the company’s stock in a transaction dated Monday, April 1st. The stock was sold at an average price of $88.04, for a total transaction of $1,193,910.44. The disclosure for this sale can be found here. 0.50% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently modified their holdings of the company. Capital Investment Advisory Services LLC bought a new position in shares of Nasdaq in the fourth quarter worth approximately $43,000. Doyle Wealth Management bought a new position in shares of Nasdaq in the fourth quarter worth approximately $51,000. Cresset Asset Management LLC bought a new position in shares of Nasdaq in the first quarter worth approximately $65,000. Pittenger & Anderson Inc. bought a new position in shares of Nasdaq in the first quarter worth approximately $66,000. Finally, Premia Global Advisors LLC bought a new position in shares of Nasdaq in the first quarter worth approximately $66,000. Hedge funds and other institutional investors own 74.39% of the company’s stock.
Nasdaq, Inc provides trading, clearing, marketplace technology, regulatory, securities listing, information, and public and private company services worldwide. The company's Market Services segment offers equity derivative trading and clearing; cash equity trading; fixed income and commodities trading and clearing; and trade management services.
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