CMC Markets (CMCX)

Sector:

Financials

Index:

FTSE 250

285.00p
   
  • Change Today:
      5.50p
  • 52 Week High: 505.00p
  • 52 Week Low: 219.50p
  • Currency: UK Pounds
  • Shares Issued: 287.41m
  • Volume: 134,193
  • Market Cap: £819.12m

Canaccord Genuity doesn't expect 'supernormal' activity to repeat at CMC Markets

By Alexander Bueso

Date: Thursday 22 Jul 2021

LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity hiked their target for CMC Markets from 326.0p to 463.0p but kept their recommendation at 'hold', telling clients that they spied both downside and upside risks to the outlook - although the two were "balanced".
Following a record 2021 financial year for client acquisition, there was the possibility that income per CFD client might decline in FY2022 by more than the 3% they had penciled-in as market volatility and leverage restrictions in Australia bite.

The number of active CFD clients was another potential risk and marketing spend was expected to rise to offset that.

Not only might the number of client acquisitions fall short of the 22,000 new traders they anticipated for FY 2022, churn might also outstrip their forecasts, the analysts added.

On the other side of the equation, the percentage of gross client income retained was a "clear" source of upside risk as was the potential opportunity in UK wealth management, the latter both in the near and medium term.

Canaccord also highlighted the dividend yield on the firm's shares, which at 4.4% they termed attractive.

And while the broker revised higher its estimates for CMC's diluted earnings per share for FY 2022 and FY 2023 by 64% and 75%, respectively, it reverted to using CMC's average one-year forward price-to-earnings multiple since listing when valuing the company.

"This reduction in target multiple reflects the current point in the cycle, post the period of supernormal activity experienced. Over the next 12-24 months, we believe this is unlikely to be repeated."



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CMC Markets Market Data

Currency UK Pounds
Share Price 285.00p
Change Today 5.50p
% Change 1.97 %
52 Week High 505.00p
52 Week Low 219.50p
Volume 134,193
Shares Issued 287.41m
Market Cap £819.12m

CMC Markets Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
33.03% above the market average33.03% above the market average33.03% above the market average33.03% above the market average33.03% above the market average
12.4% below the sector average12.4% below the sector average12.4% below the sector average12.4% below the sector average12.4% below the sector average
Price Trend
29.76% above the market average29.76% above the market average29.76% above the market average29.76% above the market average29.76% above the market average
13.87% above the sector average13.87% above the sector average13.87% above the sector average13.87% above the sector average13.87% above the sector average
Income
77.02% above the market average77.02% above the market average77.02% above the market average77.02% above the market average77.02% above the market average
40.26% above the sector average40.26% above the sector average40.26% above the sector average40.26% above the sector average40.26% above the sector average
Growth
98.18% above the market average98.18% above the market average98.18% above the market average98.18% above the market average98.18% above the market average
94.96% above the sector average94.96% above the sector average94.96% above the sector average94.96% above the sector average94.96% above the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 1
Sell 0
Strong Sell 1
Total 6
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CMC Markets Dividends

  Latest Previous
  Interim Final
Ex-Div 25-Nov-21 05-Aug-21
Paid 20-Dec-21 09-Sep-21
Amount 3.50p 21.43p

Trades for 20-May-2022

Time Volume / Share Price
16:35 43,974 @ 285.00p
16:29 481 @ 285.00p
16:29 199 @ 285.00p
16:29 497 @ 285.00p
16:29 3 @ 285.00p

CMC Markets Key Personnel

CEO Peter Cruddas
CFO Euan Marshall

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