Stock of the Day

November 28, 2019

Intercontinental Exchange (ICE)

$168.04
+$1.25 (+0.7%)
Market Cap: $95.83B

About Intercontinental Exchange

Intercontinental Exchange, Inc., together with its subsidiaries, engages in the provision of market infrastructure, data services, and technology solutions for financial institutions, corporations, and government entities in the United States, the United Kingdom, the European Union, Singapore, India, Abu Dhabi, Israel, and Canada. It operates through three segments: Exchanges, Fixed Income and Data Services, and Mortgage Technology. The company operates regulated marketplaces for listing, trading, and clearing an array of derivatives contracts and financial securities, such as commodities, interest rates, foreign exchange, and equities, as well as corporate and exchange-traded funds; and trading venues, including regulated exchanges and clearing houses. It also offers energy, agricultural and metals, and financial futures and options; and cash equities and equity options, and over-the-counter and other markets, as well as listings and data and connectivity services. In addition, the company provides fixed income data and analytic, fixed income execution, CDS clearing, and other multi-asset class data and network services. Further, it offers proprietary and comprehensive mortgage origination platform, which serves residential mortgage loans; closing solutions that provides customers connectivity to the mortgage supply chain and facilitates the secure exchange of information; data and analytics services; and Data as a Service for lenders to access data and origination information. Intercontinental Exchange, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia.

Intercontinental Exchange Bull Case

Here are some ways that investors could benefit from investing in Intercontinental Exchange, Inc.:

  • Recent upgrades from multiple analysts, including Barclays and Keefe, Bruyette & Woods, indicate strong confidence in the stock's performance, with price targets raised to $189.00 and $186.00 respectively.
  • The stock currently trades at $166.85, which is near its one-year high of $169.78, suggesting potential for further appreciation.
  • Thirteen analysts have assigned a buy rating to Intercontinental Exchange, Inc., reflecting a consensus of positive sentiment among market experts.
  • The company has a solid market capitalization of $95.80 billion, indicating a strong position in the market and the ability to weather economic fluctuations.
  • Intercontinental Exchange, Inc. has demonstrated consistent growth, with a P/E ratio of 34.91, suggesting that investors are willing to pay a premium for its earnings, which can be a sign of confidence in future growth.

Intercontinental Exchange Bear Case

Investors should be bearish about investing in Intercontinental Exchange, Inc. for these reasons:

  • Insider selling has been notable, with significant shares sold by executives, which may raise concerns about their confidence in the company's future performance.
  • The stock has experienced a recent decline of 1.0%, which could indicate potential volatility and uncertainty in the short term.
  • The company's price-to-earnings-growth (PEG) ratio is 3.21, which is relatively high, suggesting that the stock may be overvalued compared to its growth rate.
  • With a debt-to-equity ratio of 0.63, while manageable, it indicates that the company does carry some debt, which could impact financial flexibility in adverse conditions.
  • The current trading volume of 1,776,137 shares is below the average volume of 3,093,887, which may suggest reduced investor interest or liquidity concerns.

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