Please ensure Javascript is enabled for purposes of website accessibility

Why MarketAxess Holdings Stock Climbed 13% in April

By Joe Tenebruso - May 6, 2019 at 12:40AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Record trading volumes helped drive the bond platform's shares to new all-time highs.

What happened

Shares of MarketAxess Holdings (MKTX 1.27%) jumped 13.1% last month, according to data from S&P Global Market Intelligence. The electronic bond-trading platform announced a new strategic partnership and delivered better-than-expected earnings.

So what

On April 4, MarketAxess announced a partnership with Virtu Financial (VIRT 1.19%) to provide enhanced trading tools to institutional investors. MarketAxess' clients will gain access to Virtu's real-time eNAV fair value tool for exchange-traded funds, trade analytics, and anonymous ETF trading services. Virtu Financial's customers, meanwhile, will have access to MarketAxess' leading fixed-income trading platform. 

Traders working at a trading desk

MarketAxess is making more tools available to bond traders. Image source: Getty Images.

Then on April 24, MarketAxess reported strong first-quarter results. Trading volume leapt 13% to $526.2 billion, driven by record volumes in all of the company's core product lines. MarketAxess' Open Trading platform -- which offers traders a cost-effective way to transact anonymously -- was a notable bright spot, with volume surging 65.6% to $134.4 billion. 

All told, MarketAxess' first-quarter revenue rose 8.5% to $124.5 million, while its earnings per share increased 9.4% to $1.39. That beat Wall Street's expectations for EPS of $1.37. 

Now what 

MarketAxess' shares are up another 3% so far in May and a total of 35% in 2019. Investors appear to be growing increasingly bullish on the company's future prospects -- and for good reason. As the leading electronic bond-trading network, MarketAxess is well positioned to profit from the industry's transition to digital trading platforms and away from manually conducted transactions. As such, investors shouldn't be surprised if MarketAxess' stock continues to hit new all-time highs in the months ahead.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

MarketAxess Holdings Inc. Stock Quote
MarketAxess Holdings Inc.
$282.85 (1.27%) $3.54
Virtu Financial, Inc. Stock Quote
Virtu Financial, Inc.
$26.28 (1.19%) $0.31

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.