Does Earnings Surprise History Hold Any Clue for MarketAxess (NASDAQ:MKTX)

Earnings results for MarketAxess (NASDAQ:MKTX)

MarketAxess Holdings, Inc. is expected* to report earnings on 01/27/2021 before market open. The report will be for the fiscal Quarter ending Dec 2020. According to Zacks Investment Research, based on 6 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.8399999999999999. The reported EPS for the same quarter last year was $1.32.

MarketAxess last released its earnings data on October 27th, 2020. The financial services provider reported $1.78 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.74 by $0.04. The company had revenue of $164 million for the quarter, compared to analyst estimates of $138.13 million. Its revenue for the quarter was up 24.6% on a year-over-year basis. MarketAxess has generated $5.40 earnings per share over the last year and currently has a price-to-earnings ratio of 70.2. MarketAxess has confirmed that its next quarterly earnings report will be published on Wednesday, January 27th, 2021.

Analyst Opinion on MarketAxess (NASDAQ:MKTX)

11 Wall Street analysts have issued ratings and price targets for MarketAxess in the last 12 months. Their average twelve-month price target is $501.80, predicting that the stock has a possible downside of 1.57%. The high price target for MKTX is $631.00 and the low price target for MKTX is $315.00. There are currently 7 hold ratings and 4 buy ratings for the stock, resulting in a consensus rating of “Hold.”

MarketAxess has received a consensus rating of Hold. The company’s average rating score is 2.36, and is based on 4 buy ratings, 7 hold ratings, and no sell ratings. According to analysts’ consensus price target of $501.80, MarketAxess has a forecasted downside of 1.6% from its current price of $509.81. MarketAxess has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: MarketAxess (NASDAQ:MKTX)

MarketAxess has a dividend yield of 0.47%, which is in the bottom 25% of all stocks that pay dividends. MarketAxess does not have a long track record of dividend growth. The dividend payout ratio of MarketAxess is 44.44%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, MarketAxess will have a dividend payout ratio of 28.40% next year. This indicates that MarketAxess will be able to sustain or increase its dividend.

Insiders buying/selling: MarketAxess (NASDAQ:MKTX)

In the past three months, MarketAxess insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $38,841,565.00 in company stock. Only 3.05% of the stock of MarketAxess is held by insiders. 90.76% of the stock of MarketAxess is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of MarketAxess (NASDAQ:MKTX

Earnings for MarketAxess are expected to grow by 9.03% in the coming year, from $7.75 to $8.45 per share. The P/E ratio of MarketAxess is 70.22, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 24.17. The P/E ratio of MarketAxess is 70.22, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 22.03. MarketAxess has a P/B Ratio of 25.00. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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