Commonwealth Equity Services LLC significantly increased its investment in StoneX Group Inc. (NASDAQ: SNEX) by an astounding 1,708.4% during the third quarter of 2023. According to a recent filing with the U.S. Securities and Exchange Commission (SEC), the institutional investor acquired an additional 68,796 shares, bringing its total ownership to 72,823 shares, valued at approximately $7.35 million.
This substantial investment reflects broader trends among institutional investors in the market. Other notable players have also adjusted their positions in StoneX Group. For instance, Global Retirement Partners LLC raised its stake by an extraordinary 18,940.0%, now holding 6,664 shares valued at around $673,000 after acquiring 6,629 shares in the same period. Similarly, Hennessy Advisors Inc. expanded its holdings by 383.8%, amassing 542,800 shares worth approximately $54.78 million after purchasing an additional 430,600 shares.
Market Performance and Analyst Insights
As of Wednesday, StoneX Group shares opened at $103.14. The company has experienced fluctuations with a twelve-month low of $65.00 and a high of $106.98. It maintains a market capitalization of $5.39 billion and a price-to-earnings (PE) ratio of 17.50. The company’s financial health is indicated by a quick ratio of 1.35 and a current ratio of 1.72, suggesting a stable liquidity position.
On November 24, 2023, StoneX Group released its quarterly earnings report, revealing earnings per share (EPS) of $1.57, which fell short of analysts’ expectations of $1.58. The company reported revenue of $1.32 billion, exceeding the anticipated $1.04 billion. The net margin stood at 0.23%, with a return on equity of 15.27%. Comparatively, the same quarter last year yielded an EPS of $2.32. Analysts predict an EPS of $8.70 for the current fiscal year.
Analyst sentiment towards StoneX Group shares has seen some shifts. Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating in early October. Meanwhile, Weiss Ratings maintained a “hold (C+)” rating. Currently, the consensus rating stands at “hold,” with one analyst recommending a buy and two endorsing a hold.
Insider Transactions and Ownership Structure
Recent insider activity has also caught attention. John Moore Fowler, a Director at StoneX Group, sold 1,125 shares on November 3, 2023, at an average price of $91.20, totaling $102,600. Following this transaction, he holds 114,769 shares valued at approximately $10.47 million. Conversely, Chairman John Radziwill purchased 1,000 shares on December 16, 2023, at an average cost of $97.25, amounting to $97,250. This acquisition increased his holdings to 101,596 shares valued at about $9.88 million.
Insiders collectively own 11.70% of StoneX Group’s stock, indicating a significant alignment of interests between management and shareholders. Over the last quarter, insiders sold a total of 6,979 shares, amounting to $659,070.
Founded as a global financial services firm, StoneX Group provides execution, risk management, advisory, and post-trade solutions across various sectors, including commodities, currencies, securities, and digital assets. The company serves a diverse clientele, including commercial enterprises, institutional clients, and financial intermediaries, equipping them with tailored services to manage price risks effectively.
