Zacks Investment Research cut shares of Intercontinental Exchange (NYSE:ICE) from a buy rating to a hold rating in a report published on Monday morning.
According to Zacks, “Intercontinental Exchange’s successful integration of acquisitions, achievement of cost synergies and a reduced debt level well poise ICE for long-term growth. Moreover, a continued strength in its energy franchise, improving recurring market data revenues (2018 revenues to grow 5-6%) and ongoing initiatives should keep growth on track. However, rising expenses, foreign currency fluctuations and stricter regulations raise concerns. The company estimates 2018 operating expenses in the range of $2.04-$2.05 billion and adjusted operating expense in the band of $2-$2.04 billion. Interest expenses are anticipated at $73 million for fourth-quarter 2018. Shares of Intercontinental Exchange have underperformed the industry in a year. The company is set to report fourth quarter results on Feb 7. Our proven model states that it will deliver positive surprise given favorable Zacks Rank #3 and Earnings ESP of +2.23%.”
Several other brokerages also recently issued reports on ICE. Deutsche Bank raised their price target on Intercontinental Exchange from $85.00 to $86.00 and gave the company a buy rating in a report on Friday, November 16th. ValuEngine downgraded Intercontinental Exchange from a buy rating to a hold rating in a report on Tuesday, October 2nd. Goldman Sachs Group downgraded Intercontinental Exchange from a conviction-buy rating to a buy rating in a report on Friday, January 4th. Wells Fargo & Co lifted their target price on Intercontinental Exchange from $80.00 to $81.00 and gave the stock a market perform rating in a report on Thursday, November 1st. Finally, Barclays lifted their target price on Intercontinental Exchange from $82.00 to $85.00 and gave the stock an overweight rating in a report on Thursday, November 1st. Four research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. The stock has an average rating of Buy and a consensus price target of $84.50.
Shares of Intercontinental Exchange stock opened at $74.85 on Monday. Intercontinental Exchange has a 1 year low of $66.92 and a 1 year high of $82.65. The firm has a market cap of $42.44 billion, a price-to-earnings ratio of 22.04, a price-to-earnings-growth ratio of 1.99 and a beta of 0.55. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.00 and a quick ratio of 1.00.
Intercontinental Exchange (NYSE:ICE) last announced its quarterly earnings results on Wednesday, October 31st. The financial services provider reported $0.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.80 by $0.05. Intercontinental Exchange had a return on equity of 11.67% and a net margin of 43.09%. The business had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter last year, the firm posted $0.73 EPS. The company’s quarterly revenue was up 4.7% on a year-over-year basis. On average, sell-side analysts forecast that Intercontinental Exchange will post 3.55 EPS for the current fiscal year.
Intercontinental Exchange declared that its board has approved a share buyback plan on Wednesday, October 31st that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the financial services provider to buy up to 4.8% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.
In related news, Vice Chairman Charles A. Vice sold 35,000 shares of the business’s stock in a transaction dated Friday, January 4th. The stock was sold at an average price of $75.26, for a total value of $2,634,100.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Andrew J. Surdykowski sold 1,200 shares of the business’s stock in a transaction dated Monday, November 26th. The shares were sold at an average price of $80.14, for a total value of $96,168.00. The disclosure for this sale can be found here. In the last ninety days, insiders sold 118,006 shares of company stock valued at $9,193,322. 1.50% of the stock is owned by insiders.
A number of hedge funds have recently bought and sold shares of the stock. Capital World Investors raised its stake in Intercontinental Exchange by 464.9% in the third quarter. Capital World Investors now owns 15,031,546 shares of the financial services provider’s stock valued at $1,125,712,000 after purchasing an additional 12,370,546 shares in the last quarter. Janus Henderson Group PLC raised its stake in Intercontinental Exchange by 5.8% in the third quarter. Janus Henderson Group PLC now owns 12,202,306 shares of the financial services provider’s stock valued at $913,835,000 after purchasing an additional 666,185 shares in the last quarter. Franklin Resources Inc. raised its stake in Intercontinental Exchange by 2.2% in the third quarter. Franklin Resources Inc. now owns 4,537,726 shares of the financial services provider’s stock valued at $339,832,000 after purchasing an additional 97,722 shares in the last quarter. Senator Investment Group LP raised its stake in Intercontinental Exchange by 54.2% in the third quarter. Senator Investment Group LP now owns 3,700,000 shares of the financial services provider’s stock valued at $277,093,000 after purchasing an additional 1,300,000 shares in the last quarter. Finally, TIAA CREF Investment Management LLC raised its stake in Intercontinental Exchange by 112.2% in the third quarter. TIAA CREF Investment Management LLC now owns 2,661,565 shares of the financial services provider’s stock valued at $199,325,000 after purchasing an additional 1,407,479 shares in the last quarter. 88.87% of the stock is owned by institutional investors and hedge funds.
About Intercontinental Exchange
Intercontinental Exchange, Inc operates regulated exchanges, clearing houses, and listings venues for financial and commodity markets in the United States, the United Kingdom, Continental Europe, Asia, Israel, and Canada. It operates through two segments, Trading and Clearing; and Data and Listings. The company operates marketplaces for listing, trading, and clearing an array of derivatives and securities contracts across various asset classes, including energy and agricultural commodities, interest rates, equities, equity and credit derivatives, exchange traded funds, bonds, and currencies.
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