MarketAxess Holdings said on July 20, 2023 that its board of directors declared a regular quarterly dividend of $0.72 per share ($2.88 annualized). Previously, the company paid $0.72 per share.
Shares must be purchased before the ex-div date of August 1, 2023 to be eligible for the dividend. Shareholders of record as of August 2, 2023 will receive payment on August 16, 2023.
At the current share price of $270.61/share, the stock’s dividend yield is 1.06%.
Looking back five years and taking a sample each week, the average dividend yield was 0.72%, the low 0.41% and the high 1.24%. The standard deviation of returns is 0.21 (n=236).
The current dividend yield is 1.59 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is 0.43. The payout ratio tells us how much of a company’s income is paid out as dividends. A payout ratio of one (1.0) means that 100% of the company’s income is paid out as dividends. A payout ratio above one means the company is dipping into its savings to maintain its dividend, which is not a healthy situation. Companies with little growth prospects should pay most of their income in the form of dividends, which generally means a payout ratio between 0.5 and 1.0. Companies with good growth prospects should retain part of their profits in order to invest in these growth prospects, which translates into a payout ratio of zero to 0.5.
The company’s 3-year dividend growth rate is 0.20%, demonstrating that it has increased its dividend over time.
What is fund sentiment?
There are 1242 funds or institutions reporting positions in MarketAxess Holdings. This is an increase of 82 owner(s) or 7.07% in the last quarter. Average portfolio weight of all funds dedicated to MKTX is 0.30%, an increase of 7.77%. The total number of shares held by institutions has increased over the past three months by 5.85% to 45,671,000 shares. 
MKTX’s put/call ratio is 0.61, indicating a bullish outlook.
Analyst price forecast suggests 19.18% upside
As of July 6, 2023, the one-year average price target for MarketAxess Holdings was 322.52. The forecast ranges from a low of $256.54 to a high of $386.40. The average price target represents a 19.18% increase from its last published closing price of 270.61.
Check out our ranking of companies with the biggest upward price target.
The expected annual revenue for MarketAxess Holdings is 816 million, an increase of 11.32%. Projected annual non-GAAP EPS is 7.70.
What are the other shareholders doing?
Bank Julius Baer & Co. Ltd, Zurich holds 2,205,000 shares representing 5.85% ownership of the company. In its previous filing, the company said it held 2,000 shares, representing a raise of 99.90%. The company decreases its portfolio allocation in MKTX by 39.02% in the last quarter.
Guardcap Asset Management holds 1,900,000 shares representing 5.04% ownership of the company. In its previous filing, the company stated that it holds 1,903,000 shares, representing a decrease by 0.14%. The company increase its portfolio allocation in MKTX by 26.03% in the last quarter.
Royal Bank of Canada holds 1,694,000 shares representing 4.50% ownership of the company. In its previous filing, the company said it held 1,189,000 shares, representing a raise of 29.80%. The company increase its portfolio allocation in MKTX of 97.02% in the last quarter.
T. Rowe Price Investment Management owns 1,537,000 shares representing 4.08% ownership of the company. In its previous filing, the company said it held 2,071,000 shares, representing a decrease of 34.73%. The company decreases its portfolio allocation in MKTX by 2.70% in the last quarter.
Baillie Gifford holds 1,430,000 shares representing 3.80% of the ownership of the company. In its previous filing, the company said it held 1,427,000 shares, representing a raise by 0.21%. The company decreases its portfolio allocation in MKTX by 54.57% in the last quarter.
General information about MarketAxess Holdings
(This description is provided by the company.)
MarketAxess operates a leading institutional electronic trading platform providing expanded liquidity opportunities, enhanced quality of execution and significant cost savings in the global fixed income markets. A global network of more than 1,800 firms, including the world’s leading institutional asset managers and brokers, leverages MarketAxess’ patented trading technology to efficiently trade bonds. MarketAxess’ award-winning Open Trading™ marketplace is considered the preferred global trading solution in global credit markets, creating a unique pool of liquidity for a wide range of credit market participants. Leveraging its deep data and analytical resources, MarketAxess provides automated trading solutions, market data products and a range of pre- and post-trade services.
Further reading:
- MarketAxess Reports Second Quarter 2023 Results
- MarketAxess Announces Record First Quarter 2023 Revenue of $203.2 Million ADV Record Total Credit of $13.7 Billion, Up 14%; Record Open Trading® ADV of $4.5 billion, up 21%
- First Amendment, dated March 28, 2023, to Credit Agreement, dated October 15, 2021, by and between MarketAxess Holdings Inc., as Borrower, a syndicate of lenders and JPMorgan Chase Bank, NA, as Administrative Agent, and certain other financial institutions parties thereto.
- Breach Protection Agreement, dated March 1, 2022, by and between MarketAxess Holdings Inc. and Naineshkumar Shantilal Panchal #
- Proprietary Information and Non-Competition Agreement, dated March 1, 2022, by and between MarketAxess Holdings Inc. and Naineshkumar Shantilal Panchal #
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.