CME Group and FanDuel Team Up to Launch Event-Based Contracts, Predicting Moderate Upside for CME Group Stock

CME Group is collaborating with FanDuel to offer event-based contracts, expanding financial market access for users. Analysts predict a moderate upside for CME Group's stock, with price targets ranging significantly. The current consensus places CME Group's stock rating at a "Hold" with a potential downside predicted by GuruFocus GF Value metric.

CME Group Inc. (NASDAQ:CME) has entered into a strategic partnership with FanDuel to launch new event-based contracts, aiming to expand financial market access for millions of FanDuel customers in the United States. The collaboration, announced on August 25, 2023, is expected to result in the development of fully funded, event-based contracts with defined risk [1].

The partnership is likely to drive growth for CME Group, given the significant user base of FanDuel. The event-based contracts will provide new revenue streams and enhance the company's product offerings. Analysts predict a moderate upside for CME Group's stock following this announcement, with price targets ranging significantly. The current consensus places CME Group's stock rating at a "Hold" [2].

However, there is a potential downside predicted by the GuruFocus GF Value metric, which suggests a value score of 10.5 out of 100. This indicates that the stock may be overvalued compared to its peers. The metric also highlights the need for investors to consider the company's fundamentals and growth prospects before making investment decisions.

Institutional investors and hedge funds own 87.75% of CME Group's stock, indicating strong investor confidence in the company's prospects. Several institutional investors, including Decatur Capital Management Inc. and Groupama Asset Management, have increased their stakes in CME Group during the first quarter of 2025 [2].

CME Group's stock has been trading at a 1-year low of $206.44 and a 1-year high of $290.79. The company's market capitalization stands at $97.45 billion, with a PE ratio of 26.18, a P/E/G ratio of 4.86, and a beta of 0.44. The company's debt-to-equity ratio is 0.12, and its current and quick ratios are both 1.02 [2].

The company recently reported earnings of $2.96 EPS for the quarter, exceeding analysts' consensus estimates of $2.91. Revenue for the quarter was $1.69 billion, up 10.4% compared to the same quarter last year. CME Group's return on equity was 14.60%, and its net margin was 58.48% [2].

CME Group has also announced a quarterly dividend of $1.25 per share, payable on September 25, 2023, representing a $5.00 annualized dividend and a yield of 1.8%. The ex-dividend date is September 9, 2023 [2].

Analysts have issued mixed ratings for CME Group, with four analysts rating the stock as a "sell," nine as a "hold," and four as a "buy." The stock has an average rating of "Hold" and an average target price of $261.93 [2].

In other news, Director Charles P. Carey sold 500 shares of CME Group's stock on June 10, 2023, and Director Daniel G. Kaye sold 500 shares on May 22, 2023. The trades were disclosed in documents filed with the Securities & Exchange Commission [2].

References:

[1] https://www.ainvest.com/news/flutter-entertainment-shares-rise-1-23-premarket-fanduel-partnership-cme-group-event-based-contracts-2508/
[2] https://www.marketbeat.com/instant-alerts/filing-decatur-capital-management-inc-makes-new-326-million-investment-in-cme-group-inc-cme-2025-08-19/