Marketaxess Stock Story

MKTX
 Stock
  

USD 268.91  4.68  1.77%   

Marketaxess Holdings is scheduled to announce its earnings today. Marketaxess Holdings Cash and Equivalents Turnover is fairly stable at the moment as compared to the past year. Marketaxess Holdings reported Cash and Equivalents Turnover of 1.44 in 2021. Cash Flow Per Share is likely to rise to 8.03 in 2022, whereas Net Income Per Employee is likely to drop slightly above 330.5 K in 2022. While some millenniums are indifferent towards financial services space, it makes sense to break down Marketaxess Holdings as a unique investment alternative. Let's try to inspect if Marketaxess Holdings shares are reasonably priced going into August.
Published over two weeks ago
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How much will Marketaxess Holdings owe in August?

This firm currently holds 86.39 M in liabilities with Debt to Equity (D/E) ratio of 0.08, which may suggest Marketaxess Holdings is not taking enough advantage from borrowing. The company has a current ratio of 10.04, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Marketaxess Holdings until it has trouble settling it off, either with new capital or with free cash flow. So, Marketaxess Holdings' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Marketaxess Holdings sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Marketaxess to invest in growth at high rates of return. When we think about Marketaxess Holdings' use of debt, we should always consider it together with cash and equity.
Marketaxess Holdings financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Marketaxess Holdings, including all of Marketaxess Holdings's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Marketaxess Holdings assets, the company is considered highly leveraged. Understanding the composition and structure of overall Marketaxess Holdings debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

How important is Marketaxess Holdings's Liquidity

Marketaxess Holdings financial leverage refers to using borrowed capital as a funding source to finance Marketaxess Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Marketaxess Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Marketaxess Holdings's total debt and its cash.

How does Marketaxess utilize its cash?

To perform a cash flow analysis of Marketaxess Holdings, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Marketaxess Holdings is receiving and how much cash it distributes out in a given period. The Marketaxess Holdings cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Marketaxess Holdings Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Marketaxess Holdings reported Net Cash Flow from Operations of 282.09 Million in 2021

Acquisition by Li Xiaojia Charles of 497 shares of Marketaxess Holdings subject to Rule 16b-3

Legal trades by Marketaxess Holdings insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Marketaxess insider trading alert for grant of common stock par value $0.003 per share by Li Xiaojia Charles, the corporate stakeholder, on 10th of June 2022. This event was filed by Marketaxess Holdings Inc with SEC on 2022-06-10. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Perspective On Marketaxess Holdings

Marketaxess Holdings reported the previous year's revenue of 689.54 M. Net Income was 242.2 M with profit before overhead, payroll, taxes, and interest of 485.56 M.

Liabilities Breakdown

Tax Liabilities
432.4 M
Current Liabilities
Total Liabilities527.76 Million
Current Liabilities432.35 Million
Tax Liabilities43.65 Million

Will Marketaxess Holdings growth be rational after the rise?

Current kurtosis is at 0.12. Marketaxess Holdings currently demonstrates below-average downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.17. However, we advise investors to further question Marketaxess Holdings expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Marketaxess Holdings' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Marketaxess Holdings' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Marketaxess Holdings Implied Volatility

Marketaxess Holdings' implied volatility exposes the market's sentiment of Marketaxess Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Marketaxess Holdings' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Marketaxess Holdings stock will not fluctuate a lot when Marketaxess Holdings' options are near their expiration.

Our Final Takeaway

When is the right time to buy or sell Marketaxess Holdings? Buying stocks such as Marketaxess Holdings isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
While some investors may not share our view, we believe it may be a good time to increase your existing holdings in Marketaxess as the risk-reward trade off is appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Marketaxess Holdings.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Marketaxess Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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