Zacks Investment Research downgraded Intercontinental Exchange (NYSE: ICE) from a buy rating to a stand-by rating in a report released on Wednesday morning.
According to Zacks, "the successful integration of Intercontinental Exchange acquisitions, the achievement of cost synergies and a reduced level of debt also represent ICE for long-term growth. In addition, a continued strength in its energy franchise, improving recurring market data revenues (revenue 2018 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 to $ 2.05 billion and adjusted operating expenses in the range of $ 2 to $ 2.04 billion. Interest expenses are forecast at $ 73 million for the fourth quarter of 2018. Intercontinental Exchange shares have outperformed the industry year to date. Regarding quarterly results, Intercontinental Exchange profits in the third quarter of 2018 outperformed the Zacks Consensus Estimate and also improved year on year in record revenue. "
Other research analysts have also recently released stock reports. Citigroup increased its Intercontinental Exchange stock price target from $ 76.00 to $ 80.00 and gave the company a neutral rating on a report on Wednesday, July 18. Wells Fargo & Co raised its Intercontinental Exchange stock price target of $ 80.00 to $ 81.00 and gave the company a market performance rating in a report on Thursday, Nov. 1. FIX commenced coverage of Intercontinental Exchange shares in a report on Wednesday, September 5. They defined a purchase classification and a price target of $ 88.00 for the company. Deutsche Bank raised its Intercontinental Exchange stock price goal from $ 82.00 to $ 83.00 and gave the stock a buy rating in a report on Thursday, September 27. Finally, ValuEngine has cut Intercontinental Exchange shares from a buy rating to a hold rating in a report on Tuesday, October 2. Three survey analysts rated the stock with a hold rating and twelve issued a buy rating for the company's stock. The stock has a consensus buy rating and a consensus target price of $ 84.50.
Shares of NYSE ICE traded $ 1.03 during midday trading on Wednesday to $ 81.22. 4,502,491 shares of the company's shares traded, compared to its average volume of 3,564,629. The stock has a market capitalization of $ 46.26 billion, a P / E ratio of 27.53, a P / E / G ratio of 2.34 and a beta of 0.53. Intercontinental Exchange has a one-year low of $ 65.97 and a one-year high of $ 81.29. The company has a debt-equity ratio of 0.38, a current ratio of 1.00 and a fast rate of 1.00.
Intercontinental Exchange (NYSE: ICE) last issued its quarterly earnings data on Wednesday, October 31. The financial services provider reported earnings of $ 0.85 per share (EPS) for the quarter, exceeding analysts' consensus estimates of $ 0.80 per $ 0.05. The company had revenue of $ 1.20 billion during the quarter, compared with analysts' expectations of $ 1.19 billion. Intercontinental Exchange had a net margin of 43.09% and a return on equity of 11.67%. The company's revenue grew 4.7% over the previous year. During the same period last year, the company earned $ 0.73 per share. As a group, stock-market analysts anticipate that the Intercontinental Exchange will release 3.52 earnings per share for the current fiscal year.
The Intercontinental Exchange has stated that its board has authorized a share repurchase program on Wednesday, October 31, which allows the company to repurchase $ 2 billion in outstanding shares. This repurchase authorization allows the financial services provider to acquire up to 4.8% of its shares through open market purchases. Stock repurchase programs are usually an indication that the company board believes their stock is undervalued.
In other Intercontinental Exchange news, COO Mark Wassersug sold 7,903 Intercontinental Exchange shares in a transaction dated Thursday, November 15. The shares were sold at an average price of US $ 79.13, for a total value of US $ 625,364.39. After the sale, the director of operations now owns 36,982 shares of the company, valued at $ 2,926,385.66. The sale was disclosed in a legal filing with the SEC, accessible through this link. In addition, CEO Jeffrey C. Sprecher sold 80,000 Intercontinental Exchange shares in a transaction dated Wednesday, August 22. The stock was sold at an average price of $ 73.28 for a total transaction of $ 5,862,400.00. The disclosure of this sale can be found here. In the last 90 days, the insiders sold 300,625 shares of the company in the amount of US $ 22,834,370. 1.50% of the stock is owned by individuals.
Several hedge funds have recently made changes to their positions in the business. TIAA CREF Investment Management LLC increased its position on the 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 in the amount of $ 199,325,000 after acquiring another 1,407,479 shares during the period. Teachers Advisors LLC raised its stake in the Intercontinental Exchange by 75.6% in the third quarter. Teachers Advisors LLC now owns 1,699,200 shares of the financial services company in the amount of $ 127,253,000 after acquiring another 731,535 shares during the period. Kentucky Retirement Systems bought a new stake in the Intercontinental Exchange in the third quarter, valued at $ 2,136,000. Equitable Trust Co. raised its stake in the Intercontinental Exchange by 17.0% in the third quarter. Equitable Trust Co. now owns 23,672 shares of the financial services provider's stock in the amount of $ 1,773,000 after acquiring another 3,439 shares during the period. Finally, Captrust Financial Advisors raised its position on the Intercontinental Exchange by 19.8% in the third quarter. Captrust Financial Advisors now holds 6,667 shares of the financial services company in the amount of $ 499,000, after acquiring another 1,104 shares during the period. 89.31% of the shares are currently owned by institutional investors and hedge funds.
About Intercontinental Exchange
Intercontinental Exchange, Inc operates with regulated stock exchanges, clearing houses and listing sites for financial and commodity markets in the United States, the United Kingdom, Continental Europe, Asia, Israel and Canada. Operates through two segments, Trading and Clearing; and data and listings. The company operates markets to list, trade and repay a number of derivatives and securities contracts in various asset classes, including energy and agricultural commodities, interest rates, stocks, equity and credit derivatives, coins.
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