C-suite executives tend to have a good understanding of their companies’ operating activities. If these insiders are buying company stock, it’s often a sign that the outlook for the stock is attractive.
Here, we are going to highlight some interesting insider buying at MarketAxess Holdings Inc (MKTX:US). MarketAxess Holdings is a financial technology company that is based in the US. It is the market leader in the electronic trading of US corporate bonds, however, it also provides market data and offers post-trade services to the global fixed income sector. It is listed on the Nasdaq and currently has a market capitalization of around $9.4 billion.
$1 Million Stock Purchase
Our data shows that on August 14, CEO Chris Concannon purchased 4,270 shares at an average price of $238.42 per share. This trade cost the insider approximately $1 million and increased his holding to 47,166 shares.
Mr. Concannon has considerable company and industry experience. Before being appointed CEO in April, he served as President and COO of the company for around four years. Before this, he served as President and COO of Cboe Global Markets, Inc., one of the world’s largest exchange holding companies. Given his background, he is likely to have a good understanding of his company’s prospects.
MarketAxess' recent Q2 results showed that the company is having success right now.
For the quarter, the firm generated:
Record Eurobonds average daily volume of $1.9 billion.
A 26.8% increase in automation trading volume.
Record US high-grade automation trading volume of $41.3 billion, up 11.8% versus the prior-year period.
A 10.7% increase in emerging markets local markets trading volume.
39.5% growth in hedge fund client trading volume.
29% growth in private bank client trading volume.
The company ended the quarter with a record 2,083 active client firms, an increase of 7.6% year on year.
“In the second quarter we continued to innovate, integrate and execute across our product areas with strong share gains in emerging markets, Eurobonds and municipals, and a significant expansion of our active global client network, especially in US credit,” commented Mr. Concannon.
“In summary, we made significant progress in the second quarter in establishing the next generation of trading tools for clients to engage our integrated markets and drive future growth,” he added.
Given the company’s recent achievements, we see the insider buying here as a bullish development.