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MarketAxess Holdings Inc. (MKTX), headquartered in New York, operates an electronic trading platform for institutional investor and broker-dealer companies worldwide. Valued at $7.3 billion by market cap, the company develops technology that delivers price discovery and trade execution services to institutional and broker-dealer clients.
Shares of this leading electronic trading platform have underperformed the broader market over the past year. MKTX has declined 8.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17%. In 2025, MKTX stock is down 13%, compared to SPX’s 1.3% rise on a YTD basis.
Narrowing the focus, MKTX’s underperformance is also apparent compared to the SPDR S&P Capital Markets ETF (KCE). The exchange-traded fund has gained about 30.1% over the past year. Moreover, the ETF’s 1.2% dip on a YTD basis outshine the stock’s double-digit losses over the same time frame.
MKTX’s underperformance stems from high competition and turbulent market conditions.
On Feb. 6, MKTX shares closed up more than 1% after reporting its Q4 results. Its EPS of $1.73 exceeded Wall Street expectations of $1.70. The company’s revenue was $202.4 million, falling short of Wall Street forecasts of $203.4 million.
For fiscal 2025, ending in December, analysts expect MKTX’s EPS to grow 5.8% to $7.70 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 14 analysts covering MKTX stock, the consensus is a “Moderate Buy.” That’s based on four “Strong Buy” ratings, nine “Holds,” and one “Moderate Sell.”
The configuration is consistent over the past three months.
On Feb. 24, Morgan Stanley (MS) analyst Michael Cyprys kept an “Equal Weight” rating on MKTX and lowered the price target to $264, implying a potential upside of 34.2% from current levels.
The mean price target of $245.42 represents a 24.7% premium to MKTX’s current price levels. The Street-high price target of $305 suggests an ambitious upside potential of 55%.
