Value Hunters: Look To Nasdaq Inc. (NASDAQ: NDAQ)


Massachusetts Financial Services. recently announced the acquisition of new stake in Nasdaq Inc. (NASDAQ:NDAQ). The institutional investor has increased its shareholding in the Financial company by 9.04% to 15.07 million shares with purchase of 1.25 million shares. This fresh investment now brings its stake to 9.19% valued currently at $1.8 billion. In addition, Capital Research & Management Co. raised its holdings by 0.43 million to 8.28 million shares. And Findlay Park Partners LLP has lifted its position by 11.49% or 0.22 million shares – to 2.09 million shares.

With over 0.53 million Nasdaq Inc. (NDAQ) shares trading Wednesday and a closing price of $126.84 on the day, the dollar volume was approximately $67.7 million. The shares have shown a positive weekly performance of 4.22% and its price on 07/15/20 gained nearly 1.63%. Currently, there are 164.86M common shares owned by the public and among those 114.29M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 19 analysts who have offered their price forecasts for NDAQ have a consensus price objective of $124.94. The analysts have set the share’s price value over the next 12 months at a high of $141.00 and a low of $107.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Nasdaq Inc. stock is 2.30 for the next 12 months. The average price target is -6.96% below its last price level and a downside to the estimated low will see the stock lose -18.54% over that period. But an upside of 10.04% will see the stock hit the forecast high price target while mean target price for the stock is $128.00.

Insiders at the company have transacted a total of 74 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 32 of these insider trades were purchases, accounting for 282,244 shares. Insider sales of the common stock occurred on 42 occasions, with total insider shares sold totaling 162,991 shares.

The top 3 mutual fund holders in Nasdaq Inc. are MFS Value Fund, Washington Mutual Investors Fund, and Vanguard Total Stock Market Index. MFS Value Fund owns 5.68 million shares of the company’s stock, all valued at over $678.64 million. The company bought an additional 50676.0 shares recently to bring their total holdings to about 3.46% of the shares outstanding. Washington Mutual Investors Fund bought 0.35 million shares to see its total holdings expand to 4.72 million shares valued at over $564.17 million and representing 2.88% of the shares outstanding. Vanguard Total Stock Market Index sold 20550.0 shares to bring its total holdings to over 3.3 million shares at a value of $394.46 million. Vanguard Total Stock Market Index now owns shares totaling to 2.01% of the shares outstanding.

Shares of Nasdaq Inc. (NASDAQ: NDAQ) opened at $126.00, up $1.2 from a prior closing price of $124.80. However, the script later closed the day at $126.84, up 1.63%. The company’s stock has a 5-day price change of 4.22% and 19.66% over the past three months. NDAQ shares are trading 18.43% year to date (YTD), with the 12-month market performance up to 22.80% higher. It has a 12-month low price of $71.66 and touched a high of $126.22 over the same period. Currently, 0.53 million shares have been traded, compared to an average intraday trading volume of 772.53K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.90%, 8.98%, and 18.21% respectively.

Institutional ownership of Nasdaq Inc. (NASDAQ: NDAQ) shares accounts for 78.30% of the company’s 164.86M shares outstanding. Mutual fund holders own 34.64%, while other institutional holders and individual stakeholders account for 44.80% and 21.59% respectively.

It has a market capitalization of $20.49B and a beta (3y monthly) value of 0.74. The stock’s trailing 12-month PE ratio is 29.00, while the earnings-per-share (ttm) stands at $4.37. The company has a PEG of 3.81 and a Quick Ratio of 1.00 with the debt-to-equity ratio at 0.76. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.22% over the week and 2.32% over the month.

Analysts forecast that Nasdaq Inc. (NDAQ) will achieve an EPS of $1.44 for the current quarter, $1.36 for the next quarter and $5.72 for 2021. The lowest estimate earnings-per-share for the quarter is $1.36 while analysts give the company a high EPS estimate of $1.57. Comparatively, EPS for the current quarter was $1.22 a year ago. Earnings per share for the fiscal year are expected to increase by 3.90%, and 0.88% over the next financial year. EPS should shrink at an annualized rate of 7.62% over the next five years, compared to 14.10% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 19 brokerage firm advisors rate Nasdaq Inc. (NDAQ) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 8 Wall Street analysts polled rate the stock as a buy, while 8 of the 19 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the NDAQ, a number of firms have released research notes about the stock. Citigroup stated their Neutral rating for the stock in a research note on April 03, 2020, with the firm’s price target at $102-$100. BofA/Merrill coverage for the Nasdaq Inc. (NDAQ) stock in a research note released on March 12, 2020 offered a Buy rating with a price target of. Credit Suisse was of a view on December 16, 2019 that the stock is Outperform, while UBS gave the stock Neutral rating on October 25, 2019, issuing a price target of $113- $107. Oppenheimer on their part issued Outperform rating on September 17, 2019.


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