Cboe Global Markets: Hold Rating Amidst Record Revenues and Limited Upside Potential

William Blair analyst Jeff Schmitt has maintained their neutral stance on CBOE stock, giving a Hold rating today.

Jeff Schmitt’s rating is based on a combination of factors influencing Cboe Global Markets’ performance. The company has benefited from elevated market volatility, which has driven record revenues, particularly in its derivatives segment. This segment, which constitutes a significant portion of Cboe’s revenue mix, saw substantial growth due to increased volumes in proprietary index and multi-listed options. Additionally, Cboe’s Cash and Spot Markets, along with its expanding Data Vantage business, have contributed positively to its financial results.
Despite these strengths, Schmitt believes that the current market conditions, which have been favorable for Cboe, are already reflected in the stock’s price. He anticipates that once market conditions stabilize, possibly in the latter half of the year if trade deals are finalized, the growth in derivatives revenue may decelerate, leading to slower EPS growth. Given that the stock is trading above historical levels, Schmitt suggests that there is limited upside potential in the near term, justifying his Hold rating.

In another report released today, Barclays also maintained a Hold rating on the stock with a $232.00 price target.

Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CBOE in relation to earlier this year.