Shares of Nasdaq, Inc. (NASDAQ:NDAQ) experienced a significant decline ahead of trading on Tuesday, opening at $82.32 after closing the previous day at $86.30. The latest trading session saw the stock at $83.95, with a trading volume of 1,806,568 shares.
Analysts’ Perspectives on Nasdaq’s Stock Performance
Brokerages have recently provided varied assessments of Nasdaq’s stock. Weiss Ratings reiterated a “buy (B-)” rating on January 9, 2024. In contrast, Royal Bank of Canada maintained an “outperform” rating with a target price of $108.00 on January 30, 2024. Similarly, JPMorgan Chase & Co. raised its target from $100.00 to $101.00, assigning an “overweight” rating on the same date.
Raymond James Financial also reaffirmed an “outperform” rating while increasing its price target from $99.00 to $100.00 on October 13, 2023. UBS Group went further by boosting its target price from $115.00 to $120.00, indicating a strong belief in the stock’s potential. Currently, fourteen analysts rate the stock as a buy, with two holding a neutral stance, leading to an average rating of “Moderate Buy” and a consensus target price of $103.13, according to MarketBeat.
Recent Financial Performance and Dividend Announcements
On January 29, 2024, Nasdaq reported quarterly earnings, showing an earnings per share (EPS) of $0.96, surpassing the consensus estimate of $0.92 by $0.04. The company generated revenues of $1.39 billion, exceeding expectations of $1.37 billion. Nasdaq’s net margin stood at 21.77%, with a return on equity of 16.90%. Notably, revenue increased by 13.4% compared to the same quarter the previous year, when the EPS was $0.76.
In addition to its financial report, Nasdaq announced a quarterly dividend of $0.27 per share, scheduled for payment on March 30, 2024. Shareholders on record by March 16 will receive the dividend, representing an annualized payout of $1.08 and a yield of 1.3%. Nasdaq’s current payout ratio is 34.95%.
Insider Activity and Institutional Investments
In recent insider trading, Executive Vice President John Zecca sold 4,500 shares on January 6, 2024, at an average price of $100.01, totaling $450,045. This transaction reduced his ownership by 3.46%, leaving him with 125,674 shares valued at approximately $12.57 million.
CEO Adena T. Friedman sold 300,000 shares at an average price of $96.39 on January 2, 2024, for a total of $28.92 million. Following this, she owns 1,924,903 shares, worth about $185.54 million, reflecting a 13.48% decrease in her stake. Over the last quarter, insiders sold 604,500 shares, valued at $58.44 million.
Institutional investors continue to play a significant role in Nasdaq’s stock. Vanguard Group Inc. increased its holdings by 0.5% in the fourth quarter, now owning 59,916,887 shares valued at $5.82 billion. Massachusetts Financial Services Co. raised its stake by 4.8%, acquiring an additional 1,258,964 shares. State Street Corp. boosted its position by 7.7%, and Geode Capital Management increased its stake by 3.0% during the same period. Institutional ownership now stands at 72.47%.
Nasdaq, Inc. is a global financial technology leader, known for operating one of the world’s foremost electronic securities exchanges. Founded in 1971, the company continues to provide critical services to capital markets, including market technology, indices, and regulatory solutions.
