(VIANEWS) – The NASDAQ ended the session with MarketAxess Holdings (MKTX) rising 10.44% to $363.92 on Wednesday while NASDAQ slid 0.18% to $11,313.36.

MarketAxess Holdings’s last close was $329.52, 15.54% under its 52-week high of $390.13.

Is MarketAxess Holdings Stock a Good Investment?

MarketAxess Holdings Inc (NYSE: MKTX) provides an electronic trading platform for corporate bonds and other fixed income securities. This platform is used by hundreds of institutional investors and fixed-income trading professionals. The company’s products deliver enhanced trading efficiency and a diverse pool of liquidity.

MarketAxess’ product portfolio is expected to drive higher bond trading volumes. Its strategic alliances are also poised to help the company grow.

MarketAxess’ balance sheet is rock solid. The company ended the quarter with $543 million in cash and zero long-term financial debt.

Investors should be cautious when investing in this stock. Despite its recent growth, the company’s stocks have declined nearly 58% from the November highs. That’s why it’s important to know how to value it and how to compare it with other financial companies.

MarketAxess’s industry is growing, thanks to the rise of digital trading. This new technology is changing the way that bond markets work. However, the core U.S. High-Grade Credit market is slowing down. Nevertheless, MarketAxess has a good chance of recovering from this downward trend.

MarketAxess’s revenue has grown steadily. In the third quarter of 2018, the company’s EPS increased 4% to $1.58. It has also increased its dividend for twelve consecutive years, yielding 0.75% on a forward basis.

The company’s product portfolio is growing. It is expected that the product line will continue to expand in the future. During the last three months, the company has repurchased $45 million worth of its stock.

About MarketAxess Holdings

MarketAxess Holdings Inc., together with its subsidiaries, operates an electronic trading platform for institutional investor and broker-dealer companies worldwide. It offers the access to liquidity in the U.S. investment-grade bonds, U.S. high-yield bonds, and U.S. Treasuries, as well as municipal bonds, emerging market debts, Eurobonds, and other fixed income securities. The company, through its Open Trading protocols, executes bond trades between and among institutional investor and broker-dealer clients in an all-to-all anonymous trading environment for corporate bonds. It also offers trading-related products and services, including composite+ pricing and other market data products to assist clients with trading decisions; auto-execution and other execution services for clients requiring specialized workflow solutions; connectivity solutions that facilitate straight-through processing; and technology services to optimize trading environments. In addition, the company provides various pre-and post-trade services, such as trade matching, trade publication, regulatory transaction reporting, and market and reference data across a range of fixed-income and other products. MarketAxess Holdings Inc. was incorporated in 2000 and is headquartered in New York, New York.

Earnings Per Share

As for profitability, MarketAxess Holdings has a trailing twelve months EPS of $8.

PE Ratio

MarketAxess Holdings has a trailing twelve months price to earnings ratio of 45.49. Meaning,
the purchaser of the share is investing $45.49 for every dollar of annual earnings.

The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 23.45%.

Volatility

MarketAxess Holdings’s last week, last month’s, and last quarter’s current intraday variation average was 0.54%, 0.98%, and 1.95%.

MarketAxess Holdings’s highest amplitude of average volatility was 1.26% (last week), 1.61% (last month), and 1.95% (last quarter).

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