Q: What is up with TMX Group shares ? Stock seems to be losing ground everyday, since its recent earnings release, which was solid and general trading/listing activity seems to continue to rise, Now its back to $53, the level, it traded in April.
Thank You
Thank You
5i Research Answer:
X has fallen from $58 to $54 over the past month, but it is still up 22% year-to-date and 25% on a one-year basis. Despite the recent negative price action, we view its overall trend as still very much intact, and we think this type of consolidation is healthy. It trades at 26X forward earnings, and we are not concerned by this recent move. We would be comfortable slowly averaging in here, or adding a new position.