CME's pre-split IPO price is in place as support
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CME Group Inc (NASDAQ:CME) stock consolidated into its upward-sloping 50-day moving average after earnings. The $210 level, which is six times CME’s pre-split initial public offering (IPO) price of $35, is holding as support as well. This level also happens to be the area of a major peak in February 2020, and acted as resistance in June 2021.
Despite CME’s outperformance on the charts, there is plenty of room for upgrades that could push the stock higher. Of the 18 analysts in coverage, eight carry a “hold” or worse rating. Meanwhile, shorts have been in covering mode since May, though there was an uptick prior to its last earnings report.
CME’s all-time high sits at $250, but there is reasonable upside to its all-time monthly closing high in June 2022 at the $232 mark. This level also coincides with double the stock’s ’07 peak.
Our recommended January 19, 2024 call has a leverage ratio of 15.1 and will double on a 6.5% pop in the underlying shares.