Timothy S Bitsberger Takes a Bullish Stance: Acquires $145K In CME Gr Stock

A notable insider purchase on June 27, was reported by Timothy S Bitsberger, Board Member at CME Gr CME, based on the most recent SEC filing.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Bitsberger purchased 748 shares of CME Gr, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $145,186.

At Thursday morning, CME Gr shares are up by 0.22%, trading at $195.63.

All You Need to Know About CME Gr

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 CME was founded in 1898 and in 2002 completed its initial public offering. 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 in 2018, it has also expanded into cash foreign exchange, fixed income trading, and collateral optimization.

CME Gr: Delving into Financials

Revenue Growth: CME Gr's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 3.21%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 86.16%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): CME Gr's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 2.35.

Debt Management: CME Gr'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.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 22.23, 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 12.48 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): With an EV/EBITDA ratio lower than industry benchmarks at 15.62, CME Gr presents an attractive value opportunity.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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The Importance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Understanding Crucial Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of CME Gr's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.