Goldman Sachs reported on Monday that they have downgraded
electronic trading exchange, CME Group Inc(
) to a "Sell."
The firm reported that they have downgraded CME from "Neutral"
to "Sell," and have decreased its price target from $53 to $48.
This price target suggests a 14.5% decline from the stock's current
price of $54.96.
Analysts see the company starting to focus less on dividends,
and more on weak fundamentals. The firm believes that EPS will
drop; and also noted company's valuation is stretched due to their
change in dividend policies.
CME Group shares were down 99 cents, or -1.80% during premarket
trading Monday. The stock is up 12% YTD.
The Bottom Line
Shares of CME Group (
) have a 3.28% dividend yield, based on Friday's closing stock
price of $54.96. The stock has technical support in the $50-$52
price area. If the shares can firm up, we see overhead resistance
around the $58-$59 price levels.
CME Group Inc(
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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