MarketAxess Holdings Stock: Analyst Estimates & Ratings
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Valued at a market cap of $8.2 billion, MarketAxess Holdings Inc. (MKTX) is a financial technology company that operates an electronic trading platform for institutional investors and broker-dealers. In addition to trading services, the New York-based company offers a suite of pre- and post-trade solutions, such as trade processing, regulatory reporting, and market data analytics.
Shares of this capital markets company have lagged behind the broader market over the past 52 weeks. MKTX has gained 1.6% over this time frame, while the broader S&P 500 Index ($SPX) has soared 10.2%. Moreover, on a YTD basis, the stock is down 3.6%, compared to SPX’s 1.3% loss.
Narrowing the focus, MKTX has also underperformed the SPDR S&P Capital Markets ETF’s (KCE) 20.2% return over the past 52 weeks and 2.5% drop on a YTD basis.
On May 7, shares of MKTX closed down marginally after its mixed Q1 earnings release. The company’s revenue declined slightly year-over-year to $208.6 million and fell short of the consensus estimates by a narrow margin. The dip in the overall top line was mainly due to a 1.9% decrease in commission revenue, driven by weaker credit commissions. On the earnings front, its adjusted EPS fell 2.6% year-over-year to $1.87 but still exceeded Wall Street estimates by 2.7%. The earnings beat was supported by increased trading volumes, which likely offered some reassurance to investors.
For the current fiscal year, ending in December, analysts expect MKTX’s EPS to grow 2.9% year over year to $7.49. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 14 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on four “Strong Buy,” one “Moderate Buy,” eight “Hold,” and one “Moderate Sell” rating.
This configuration is slightly more bullish than two months ago, with no analyst suggesting a “Moderate Buy” rating.
On May 8, Piper Sandler Companies (PIPR) maintained a “Neutral” rating on MKTX and lowered its price target to $202.
The mean price target of $238.25 represents a 9.4% premium from MKTX’s current price levels, while the Street-high price target of $295 suggests an ambitious upside potential of 35.4%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.