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Valued at a market cap of $93.26 billion, Intercontinental Exchange, Inc. (ICE) provides market infrastructure, data services, and technology solutions. Based in Atlanta, Georgia, the company operates regulated exchanges, clearing houses, and listing venues globally. It is also a provider of data services for commodity, financial, fixed-income, and equity markets.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and Intercontinental Exchange fits right into that category. The company distinguishes itself as the leader in price discovery, capital raising, and indexing and operates 13 regulated exchanges, marketplaces, and six central clearing houses.
ICE shares are trading 2.1% below their 52-week high of $163.62, which they hit recently. ICE has gained 18.8% over the past three months, outpacing the broader iShares U.S. Financial Services ETF’s (IYG) 6.1% gain over the same time frame.
In the longer term, ICE stock is up 24.8% on a YTD basis, outperforming the IYG’s 15.9% gains. ICE shares have rallied 41.1% over the past 52 weeks, surpassing IYG's 29.4% returns over the same time frame.
ICE has been trading above its 200-day moving average since mid-November last year and has remained above its 50-day moving average since early June, indicating a bullish trend.
ICE has benefitted from its diversified product portfolio, strategic actions, including the acquisition of Black Knight, and wisely managed capital. The company’s robust shareholder returns through dividends and share buybacks have further contributed to its price performance.
However, shares of ICE decreased marginally after its Q2 earnings release on Aug. 1, despite its adjusted earnings of $1.52 per share, beating Wall Street estimates by 2% and revenues of $2.3 billion, which also slightly exceeded the consensus estimates. For Q3, ICE's adjusted operating expenses are expected to be between $955 million and $965 million.
ICE has outpaced its rival Cboe Global Markets, Inc.’s (CBOE) 17.8% gain on a YTD basis and 40.2% return over the past 52 weeks.
As ICE has outperformed the broader market, analysts remain optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 15 analysts in coverage, and the mean price target of $166.38 suggests a 3.8% premium to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
