MarketAxess: Strong Growth in Trading Volumes and Strategic Initiatives Drive Buy Rating

William Blair analyst Jeff Schmitt has maintained their bullish stance on MKTX stock, giving a Buy rating on May 30.

Jeff Schmitt has given his Buy rating due to a combination of factors including MarketAxess’s impressive growth in trading volumes and strategic initiatives. Despite a slight decline from April’s record levels, the company’s trading volumes in May showed a significant year-over-year increase, with a 44% rise in average daily volume (ADV) driven by substantial growth in both rates and credit ADV.
Moreover, the launch of a targeted block trading solution has led to remarkable growth in block trading, particularly in Eurobonds and U.S. credit, suggesting a promising future growth driver. The company’s advancements in portfolio trading and dealer solutions have also contributed to increased market share, particularly in U.S. credit portfolio trading. While there are some areas of softness, such as the U.S. high-yield share, the overall positive momentum and strategic positioning underpin Schmitt’s optimistic outlook for the stock.

In another report released on May 30, Citi also maintained a Buy rating on the stock with a $265.00 price target.

Based on the recent corporate insider activity of 51 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 MKTX in relation to earlier this year.