Investment analysts at Zacks Research have increased their earnings per share estimates for Nasdaq, Inc. (NASDAQ:NDAQ) for the fiscal year 2025. In a note issued to investors on November 7, 2023, Zacks now projects that Nasdaq will earn $3.39 per share, a rise from their previous estimate of $3.27. This adjustment comes as the consensus estimate for the company’s current full-year earnings stands at $3.18 per share.
In addition to the FY2025 forecast, Zacks Research provided estimates for upcoming quarters. They project earnings of $0.87 per share for the fourth quarter of 2025, $0.92 for the third quarter of 2026, and $0.97 for the fourth quarter of 2026. The analysts anticipate a full-year earnings estimate for 2026 at $3.70 per share and $4.08 for fiscal year 2027.
Earnings Performance and Market Reaction
Nasdaq recently reported its earnings results on October 21, 2023. The company achieved earnings of $0.88 per share, surpassing the consensus estimate of $0.82 by $0.06. Revenue for the quarter reached $1.32 billion, exceeding the forecast of $1.29 billion, representing a notable 14.7% increase compared to the same quarter in the previous year. Last year, Nasdaq reported earnings of $0.74 per share during the same period.
Following the earnings announcement, Nasdaq’s stock saw a slight increase of 1.2%, opening at $87.24 on Monday. The stock has experienced fluctuations over the past twelve months, with a low of $64.84 and a high of $97.63. The company’s market capitalization currently stands at $49.81 billion, with a price-to-earnings (P/E) ratio of 31.16.
Institutional Investment Trends and Insider Activity
Recent activity among institutional investors has been notable. Bruce G. Allen Investments LLC increased its holdings in Nasdaq shares by 72.7% during the second quarter, now owning 285 shares valued at approximately $25,000. Other firms, including Front Row Advisors LLC and Twin Peaks Wealth Advisors LLC, have also initiated positions in Nasdaq, contributing to a total of 72.47% of the stock currently held by institutional investors and hedge funds.
In insider news, Jeremy Skule, Executive Vice President, sold 2,105 shares of Nasdaq’s stock on November 3, 2023, at an average price of $85.40, resulting in a transaction value of approximately $179,767. Following this sale, Skule retains 84,974 shares with a total value of about $7.26 million.
Nasdaq has also announced a quarterly dividend of $0.27 per share, which will be paid on December 19, 2023, to stockholders of record on December 5, 2023. This dividend translates to an annualized figure of $1.08 and represents a yield of 1.2%. The company’s dividend payout ratio currently stands at 38.57%.
Nasdaq, Inc. operates globally as a technology company, providing services to capital markets and various industries. The company segments its operations into three main areas: Capital Access Platforms, Financial Technology, and Market Services. This structure underlines its commitment to delivering historical and real-time market data, as well as developing and licensing Nasdaq-branded indices and financial products.
