June's average daily volume totaled $567 billion, down 2% from $578.5 billion a year earlier. Second-quarter transaction fees also trailed some analysts’ estimates, according to FactSet, though U.S. high-grade-bond volumes did better.
MarketAxess recently traded at $442.56, down 6.2%. The stock has slumped 17% over the past six months.
As for the analysts, Patrick O’Shaughnessy of Raymond James cut his price target to $530 from $580 but left his rating at outperform.
Second-quarter volume lagged his forecast, with volume across the industry hurt by low market volatility, he said, according to Bloomberg.
Still, increased user adoption of electronic platforms and open trading venues bode well for MarketAxess, he said.
Piper Sandler’s Richard Repetto reduced his earnings-per-share estimate for the second quarter to $1.74 from $1.81, Bloomberg reports.
The company’s daily notional value of $25.8 billion lagged his forecast of $26 billion. An “unfavorable environment drives” the company’s volume underperformance, Repetto said.
In other bond news, Salesforce (CRM) - Get salesforce.com, inc. Report said last week that it has begun a bond offering to finance its $28 billion purchase of communications service Slack Technologies (WORK) - Get Slack Technologies, Inc. Class A Report.
It’s a six-part issue for the customer-relationship-management software provider. The longest maturity is 40 years and may yield about 1.15 percentage points over Treasurys, a source told Bloomberg.
Salesforce has an A rating from S&P Global Ratings and an A2 rating from Moody’s Investors Service. The takeover is expected to close by July 31.