Cboe reports mixed trading volume for May 2025

Cboe Global Markets' May 2025 trading volumes reveal mixed performance across asset classes, with multiply-listed options ADV increasing 27.6% year-over-year but declining 4.1% from April, while futures contract trading volumes decreased 22.5% year-over-year and 46.4% month-over-month. U.S. equities saw on-exchange matched shares rise 30.7% and off-exchange matched shares surge 62.0% compared to May 2024, while European equities trading volume showed a substantial gain of 40.2% from May 2024, although it fell by 30.5% from April 2025. These volume fluctuations occur amidst analyst downgrades from Morgan Stanley citing volatility concerns, contrasted by UBS raising Cboe’s price target following strong Q1 2025 results.

Analysis

Cboe Global Markets presented a varied trading volume landscape for May 2025, with multiply-listed options average daily volume (ADV) increasing 27.6% year-over-year (YoY) to 12,711 thousand contracts, though declining 4.1% from April 2025. Index options also grew 14.7% YoY but fell 14.9% month-over-month (MoM). Conversely, futures contracts experienced significant declines of 22.5% YoY and 46.4% MoM. U.S. equities demonstrated robust YoY growth, with on-exchange matched shares up 30.7% and off-exchange shares surging 62.0%, while European equities volumes rose 40.2% YoY despite a 30.5% MoM drop. These mixed volume figures arrive amidst a backdrop of strong financial health, evidenced by 15.76% LTM revenue growth, a 19% return on equity, and a "GREAT" InvestingPro financial health score. Cboe's Q1 2025 results were strong, with adjusted EPS of $2.50 beating the $2.24 forecast and net revenue climbing 13% YoY to $565 million, propelled by its options segment (+15%) and Europe/APAC operations (+18%). The company is also undergoing executive leadership transitions, with Dave Howson resigning and Cathy Clay and Chris Isaacson taking on expanded responsibilities. Analyst opinions are divergent: Morgan Stanley downgraded CBOE to Underweight (PT $215) due to concerns over potentially declining market volatility impacting volumes, while UBS raised its price target to $245 (Neutral) following the strong Q1 performance. InvestingPro's AI analysis suggests CBOE may not currently be among the top undervalued stocks.

Key Decisions for Investors

• Investors should closely monitor subsequent trading volume reports, particularly for high-margin options and futures, to assess if the month-over-month softness persists and to gauge the actual impact of market volatility trends.
• The ongoing executive leadership changes warrant observation for their potential effects on Cboe's strategic direction and operational execution across its global segments.
• Given the conflicting analyst outlooks and the AI valuation signal, investors may wish to carefully weigh Cboe's strong recent financial outperformance and revenue growth against potential headwinds from shifting volatility environments and its current market valuation.