Cboe Global Markets, Inc. Monthly Stock Report - December 31, 2025

Company Overview

Cboe Global Markets, Inc. (CBOE), headquartered in Chicago, Illinois, operates as a leading options exchange, playing a pivotal role in the financial services sector both in the United States and internationally. Founded in 1973, the organization has evolved significantly, currently engaging in numerous segments, including Options, North American Equities, European and Asia Pacific markets, Futures, Global FX, and Digital trading. Cboe Digital enhances its value proposition by operating a regulated spot market for digital assets and futures exchange, making the company a key player in the continuously evolving landscape of finance.

The scope and scalability of Cboe's business model allow it to serve a diverse array of clients. With a total revenue of approximately $4.62 billion and consistent performance, Cboe demonstrates a solid position in the industry. As an entity focused on innovation and operational efficiency, it has garnered attention for its potential for sustained growth in both traditional and digital markets. This monthly report aims to dissect Cboe's performance, providing insights into the technical, financial, and sentiment aspects of the company's stock.

52-Week Price Performance Analysis

52-Week Price Performance Chart

Cboe's stock has exhibited a clear bullish trend over the past 52 weeks, with the stock price ranging from a low of $187.30 to a high of $262.98. Currently priced at $256.16, the stock remains above the 50-day moving average of $250.55, indicating short-term bullish momentum.

Technical Highlights:

• Support Levels: A significant support level has emerged around $220, where the stock maintained stability during downturns. This level is crucial for establishing the stock's resilience.

• Resistance Levels: The stock has hit notable resistance around the $250 mark but recently broke above, closing at $254.54. This breakout level suggests a healthy upward momentum, raising the likelihood of continued growth provided it sustains its position above this threshold.

• Momentum Indicators: There is a healthy price momentum evident in the stock's movement, as indicated by its consistent trading above the moving average. The periodic pullbacks noted around June and October were followed by rallies, maintaining the overall uptrend.

The chart analysis forecasts a vibrant bullish scenario for CBOE, especially if the stock can consolidate above key support levels. The increase in price volatility denotes heightened investor interest, indicating the potential for ongoing positive price action.

Financial Performance and Metrics

Cboe's recent financial results paint a compelling picture of growth and stability. In Q3 2025, the company achieved record net revenue of $605.5 million, marking a 14% increase year-over-year, coupled with an adjusted diluted earnings per share of $2.67--a remarkable 20% growth from the previous year.

Key Financial Metrics:

• Total Revenue: $4.62 billion
• EBITDA: Approximately $1.5 billion, reflecting robust operating income capacity.
• Options Revenue: A significant driver of growth, with a 19% increase, reflecting a 26% rise in average daily volume.
• Recent Quarterly Growth Rates: Record trading volumes in proprietary indexes reached 5.9 million contracts daily in November, showing a 41.4% increase year-on-year.

These figures underline Cboe's strong operational performance and effective strategy to leverage current market conditions and client demand. The financial health evidenced by high revenue figures and positive EBITDA underscores the company's capability to pursue further growth initiatives.

Recent News and Developments

Several pivotal updates have emerged concerning Cboe's strategic focus and financial health:

1. Strong Q3 Performance: Record revenue and earnings growth suggest a robust operational framework, positioning Cboe favorably in the competitive landscape.

2. Strategic Business Realignment: The announced plans to divest its Australian and Canadian businesses aim to sharpen focus on its core derivatives markets, potentially leading to an estimated 3% reduction in net revenue but also an 8-10% decrease in adjusted operating expenses.

3. Ongoing Dividend Payments: Cboe declared a quarterly cash dividend of $0.72 per share for Q4 2025, honoring 16 consecutive years of dividend distributions, a key indicator of financial health and shareholder commitment.

These developments not only illustrate Cboe's commitment to improving operational efficiency but also underscore their determination to adapt in a competitive market environment.

Market Sentiment and Analyst Recommendations

The sentiment from analysts regarding Cboe has been varied, reflecting a call for caution among investors:

• Target Price Analysis: The consensus target price indicates a potential upside from the current trading price of $256.16, with a high target of $310.00 and a mean target of around $264.23.

• Analyst Recommendations: Currently, the recommendation key suggests a "hold" strategy with a mean analyst rating of 3.0625, denoting a cautious stance towards future price movements. Notably, Morgan Stanley has maintained an "Underweight" rating with a target of $271.66, while Keefe, Bruyette & Woods holds a "Market Perform" rating with a slightly lower target of $254.59.

Overall market sentiment appears neutral to slightly positive, reflecting a growing interest but also an awareness of the challenges ahead. While the stock is positioned well in light of its financial performance, the mixed analyst recommendations suggest the need for ongoing diligence.

Conclusion

In summary, Cboe Global Markets, Inc. has demonstrated a robust financial performance amidst evolving market dynamics. With a strong revenue base, strategic initiatives aimed at enhancing operational focus, and a bullish technical outlook, there are promising prospects for the company's future. However, the mixed sentiment from analysts and the broad range of price targets suggest careful consideration is warranted by retail investors.

Potential investors and current shareholders should weigh the opportunities for growth against the inherent risks and volatility in market sentiment. With recent operational achievements and a sound business model, Cboe stands as a compelling choice but requires a vigilant approach to investment strategies moving forward.