MKTX Sets 2026-2028 Growth Targets, Boosts Share Buybacks

MarketAxess Holdings Inc. MKTX recently announced its medium-term financial objectives and also announced measures to return value to shareholders via share repurchases.

2026-2028 Financial Targets

MarketAxess has introduced medium-term financial performance targets. It is targeting average annual total revenue growth within 8-9%, along with an average annual improvement in operating margin of 75-125 basis points.

These targets reflect projected average annual growth rates for the period from 2026 to 2028, calculated on a constant currency basis and assuming a stable business portfolio. The projections are also based on anticipated minimum average annual growth of approximately 6% in composite credit market average daily volume (ADV) and around 5% in U.S. government bond TRACE market ADV.

The recently issued targets reinforce management’s confidence in sustained technology investments that are expected to enable the development of cutting-edge trading protocols and workflow tools. This, in turn, is likely to lead to a better client experience and higher revenue growth in the days ahead.

Update on Share Repurchase Program

In addition to disclosing medium-term financial objectives, the board of directors of MarketAxess sanctioned an additional share repurchase program of up to $400 million. There was an unused capacity of $105 million under a previously announced repurchase program. Together, these two authorizations provide a total repurchase capacity of $505 million. 

Out of this total, $300 million is expected to be utilized for the Accelerated Share Repurchase (ASR) agreement that MKTX is planning to initiate with JPMorgan Chase Bank, National Association. Under the terms of the arrangement, MKTX expects to initially receive approximately $240 million worth of shares, with the remainder delivered upon the final settlement of the transaction, anticipated in the first quarter of 2026.

The company plans to finance the ASR through a combination of $80 million from existing cash reserves and $220 million in borrowings drawn from the MarketAxess’ revolving credit facility. After accounting for the ASR, the remaining $205 million in repurchase authorization may be utilized at the company’s discretion in future.  

Such impressive capital deployment moves highlight a company’s strong financial position. MarketAxess boasts a strong financial position, thanks to its adequate cash reserves and robust free cash flow generation abilities. It had cash and cash equivalents of $473.3 million as of Sept. 30, 2025. In the first nine months of 2025, net cash from operations advanced 6.9% from the prior-year comparable period. MKTX also resorts to dividend hikes, with the last one being a 2.7% one approved in February 2025.

MarketAxess’ Share Price Performance & Zacks Rank

Shares of MarketAxess have inched up 1% in the past month compared with the industry’s 2.1% growth. MKTX currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the Finance space are CB Financial Services, Inc. CBFV, Acadian Asset Management Inc. AAMI and Ellington Financial Inc. EFC. While CB Financial currently sports a Zacks Rank #1 (Strong Buy), Acadian Asset Management and Ellington Financial carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of CB Financial outpaced estimates in three of the last four quarters and missed the mark once, the average surprise being 22.37%. The Zacks Consensus Estimate for CBFV’s 2025 earnings suggests a surge of 35% from the year-ago reported figure, while the same for revenues suggests growth of 6.1%. The consensus mark for CBFV’s 2025 earnings has moved 5.8% north in the past 60 days.

Acadian Asset Management’s earnings outpaced estimates in three of the trailing four quarters and matched the mark once, the average surprise being 13.35%. The Zacks Consensus Estimate for AAMI’s 2025 earnings suggests an improvement of 34.4% from the year-ago reported figure, while the same for revenues implies growth of 22.9%. The consensus mark for AAMI’s 2025 earnings has moved 0.5% north in the past 60 days.

The bottom line of Ellington Financial outpaced estimates in each of the last four quarters, the average surprise being 16.40%. The Zacks Consensus Estimate for EFC’s 2025 earnings implies an improvement of 25.3% from the year-ago reported figure, while the same for revenues indicates growth of 39.2%. The consensus mark for EFC’s 2025 earnings has moved 2.2% north in the past 30 days.

Shares of CB Financial and Acadian Asset Management have gained 3.4% and 6.2%, respectively, in the past month. However, Ellington Financial stock declined 2% in the same time frame. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research