MarketAxess Holdings Inc. (NASDAQ:MKTX) Announces Quarterly Dividend of $0.74

MarketAxess Holdings Inc. (NASDAQ:MKTX) declared a quarterly dividend on Tuesday, August 6th, investing.com reports. Stockholders of record on Wednesday, August 21st will be given a dividend of 0.74 per share by the financial services provider on Wednesday, September 4th. This represents a $2.96 dividend on an annualized basis and a dividend yield of 1.29%. The ex-dividend date of this dividend is Wednesday, August 21st. This is a boost from MarketAxess’s previous quarterly dividend of $0.20.

MarketAxess has raised its dividend by an average of 6.3% per year over the last three years and has raised its dividend annually for the last 16 consecutive years. MarketAxess has a dividend payout ratio of 37.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect MarketAxess to earn $7.91 per share next year, which means the company should continue to be able to cover its $2.96 annual dividend with an expected future payout ratio of 37.4%.

MarketAxess Stock Performance

MarketAxess stock traded down $4.56 during trading hours on Wednesday, reaching $230.02. 8,249 shares of the stock were exchanged, compared to its average volume of 423,669. MarketAxess has a 52-week low of $192.42 and a 52-week high of $297.97. The stock has a market cap of $8.72 billion, a P/E ratio of 34.45, a P/E/G ratio of 5.87 and a beta of 1.03. The firm’s 50 day moving average is $207.92 and its 200 day moving average is $215.11.

MarketAxess (NASDAQ:MKTX) last posted its quarterly earnings results on Tuesday, August 6th. The financial services provider reported $1.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.69 by $0.03. MarketAxess had a net margin of 33.83% and a return on equity of 20.82%. The firm had revenue of $197.70 million during the quarter, compared to analysts’ expectations of $198.07 million. During the same period in the prior year, the company posted $1.63 earnings per share. The firm’s revenue for the quarter was up 9.9% on a year-over-year basis. Equities research analysts expect that MarketAxess will post 7 EPS for the current fiscal year.

Insider Transactions at MarketAxess

In related news, Director Stephen P. Casper sold 500 shares of the business’s stock in a transaction that occurred on Friday, June 7th. The stock was sold at an average price of $199.48, for a total transaction of $99,740.00. Following the transaction, the director now directly owns 10,201 shares of the company’s stock, valued at approximately $2,034,895.48. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 2.66% of the company’s stock.

MarketAxess declared that its Board of Directors has initiated a share buyback plan on Tuesday, August 6th that authorizes the company to repurchase $250.00 million in shares. This repurchase authorization authorizes the financial services provider to reacquire up to 2.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on MKTX shares. Piper Sandler reaffirmed a “neutral” rating and issued a $225.00 target price on shares of MarketAxess in a report on Tuesday. Bank of America started coverage on MarketAxess in a report on Wednesday, April 10th. They set an “underperform” rating and a $199.00 price objective for the company. UBS Group dropped their price objective on shares of MarketAxess from $305.00 to $285.00 and set a “buy” rating for the company in a research note on Wednesday, May 8th. Keefe, Bruyette & Woods reduced their target price on MarketAxess from $235.00 to $230.00 and set a “market perform” rating on the stock in a research note on Wednesday, May 8th. Finally, Morgan Stanley boosted their price target on MarketAxess from $278.00 to $279.00 and gave the stock an “equal weight” rating in a report on Tuesday, April 9th. Three research analysts have rated the stock with a sell rating, six have issued a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $241.00.

About MarketAxess

MarketAxess Holdings Inc, together with its subsidiaries, operates an electronic trading platform for institutional investor and broker-dealer companies worldwide. The company offers trading technology that provides liquidity access in U.S. high-grade bonds, U.S. high-yield bonds, emerging market debt, eurobonds, municipal bonds, U.S.