Intercontinental Exchange Stock Down as Merger is Nixed

By Scott Lee • Thursday, March 09 16:18 • Permanent Link

ICE investors were likely spooked this aftermarket by Reuters's report: "WASHINGTON, March 9 ( Reuters ) - The U.S. Federal Trade Commission on Thursday said it would take action aimed at stopping New York Stock Exchange parent Intercontinental Exchange ( ICE.N ) from acquiring mortgage data vendor Black Knight ( BKI.N ) in a $13.1 billion deal." For more coverage, read the full article here. On the back of this news, Intercontinental Exchange sank -1.81% to a price of $100.75. Are the markets overreacting?

The Intercontinental Exchange (ICE) is an American Fortune 500 company formed in 2000 that operates global exchanges, clearing houses and provides mortgage technology, data and listing services. The company owns exchanges for financial and commodity markets, and operates regulated exchanges and marketplaces. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 14.34 and an average price to book (P/B) ratio of 1.57. In contrast, Intercontinental Exchange has a trailing 12 month P/E ratio of 39.05 and a P/B ratio of 2.579.

Intercontinental Exchange has moved -19.16% over the last year compared to -6.28% for the S&P 500 -- a difference of -12.88%. Intercontinental Exchange has a 52 week high of $135.85 and a 52 week low of $88.28. At today's price of $100.75 per share, Intercontinental Exchange is -21.33% away from its target price of $128.07, and on average, analysts give the stock a rating of buy. 1% of the company's shares are linked to short positions, and 91% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.