StoneX Group (SNEX) has received a new Buy rating, initiated by William Blair analyst, Jeff Schmitt.
Jeff Schmitt has given his Buy rating due to a combination of factors including StoneX Group’s robust position in niche and underserved markets, which supports its organic growth strategy. The company has demonstrated an ability to compound book value across different market cycles, driven by its focus on the middle market and its flexible cost structure. StoneX’s strategy includes expanding its ecosystem, cross-selling, and increasing its market presence, which positions it well for continued growth.
Additionally, StoneX benefits from long-term secular trends such as industry consolidation and the rise of off-exchange trading, which enhance its growth prospects. The company’s shares are currently trading at a favorable valuation, with potential for upside as market volatility remains high. With its historical ability to achieve mid-teen growth in book value per share and a targeted return on equity of 15%, StoneX is well-positioned to deliver strong returns, justifying the Buy rating.
Based on the recent corporate insider activity of 68 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 SNEX in relation to earlier this year.