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Intercontinental Exchange August Volumes Solid, Shares Up


Shares of Intercontinental Exchange, Inc. ICE inched up 0.6% in the last trading session after it reported solid average daily volume (ADV) for August. The metric for the month increased 3.5% year over year to 4.8 million contracts. Also, the same sequentially improved 7.6%.

The year-over-year improvement was driven by Financials volume, rallying 21.5% to 2.2 million contracts per day. However, Commodities volume, which also averaged approximately at 2.6 million contracts per day, slipped 8% year over year. There were 23 trading days in August.

Energy volume decreased 12% to about 2.2 million contracts per day while Agricultural and Metals volume increased 21.8% to 0.4 million contracts. Interest Rate volume surged 33.2% to 1.9 million contracts per day whereas Equity Index volume declined 29.1% to 0.2 million contracts. Foreign exchange volume plunged 14.3% to nearly 0.02 million contracts.

Revenue per contract was 4.90 cents for August, down 3.9% year over year.

Shares of Intercontinental Exchange have underperformed the industry year to date. The stock has gained 10.3%, lagging the industry’s increase of 11.3%.

The company’s array of products along with a broad range of risk management services, strategic acquisitions and a solid capital position should help the stock retain its growth momentum. This in turn, should also help shares trend higher.

Recently, securities exchanges, namely CME Group Inc. CME, Nasdaq Inc. NDAQ and MarketAxess Holdings Ltd. MKTX also reported respective volumes. Nasdaq posted a 10.5% expansion in options volume, recording 154.6 million contracts. MarketAxess posted a trading volume of $124.4 billion for August consisting of $66.1 billion in U.S. high-grade volume, $53.3 billion in other credit volume and $5 billion in liquid products volume. CME Group’s ADV of 15.9 million contracts per day remained unchanged year over year.

Intercontinental Exchange carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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