May we understand what is the reason for the recent share price drop in MaketAxess?
Let take this as a practice exercise. Why don’t you go find out what is the reason for the recent price drop and share it here. I will give my opinion from there. :)
I see there has been some insider selling the last year, but no buying. And I guess since COVID-19 the price has climbed too fast. I guess that could have an impact on the price.
Hi Erastus Jonker,
Good effort and keep it up :)
The price climbing too fast is just part of the reasons. There is still something else.
Do note insider selling is quite common in US but it does not mean that it is a bad sign.
Has it got to do with the market over reacting to the earlier Fed announcement of its intension of increasing interest rates? Markets are irrationale at times.
It was a market wide sell off for tech stocks in late April. So not just Mktx affected.
MKTX’s monthly transaction volume figures for Apr and May are decreasing month to month. Signal of a possible lower revenue for 2Q.
I also guessed it was cos of the insider selling before your explanation.
I looked further, Yahoo Finance states that trading volumes were weak due to a decline in overall credit market activity from the past when credit market activity was elevated, due to the economic disturbance caused by the pandemic.
Is it correct to say that thus the price drop is temporary?
I want to say that you guys did a great job by participating in this practice exercise. It is definitely a great start for your investing journey. Continue maintaining this attitude and drive, I will assure you that brighter future is definitely around the corner. :)
Once again, keep up the good work and stay safe in this pandemic.
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