4. Intercontinental Exchange, Inc. (NYSE:ICE)
Crescent Park Management’s Stake Value: $44,839,000
Percentage of Crescent Park Management’s 13F Portfolio: 7.29%
Number of Hedge Fund Holders: 56
Intercontinental Exchange, Inc. (NYSE:ICE) provides market infrastructure, data services, and technological solutions. Exchanges, Fixed Income and Data Services, and Mortgage Technology are its three segments. Crescent Park Management held 327,846 shares of Intercontinental Exchange, Inc. (NYSE:ICE) in Q4 2021, amounting to $44.84 million, representing 7.29% of its total holdings.
Intercontinental Exchange, Inc. (NYSE:ICE) featured in the portfolios of 56 hedge funds during the fourth quarter of 2021, with total stakes valued at $3.75 billion. This shows a positive sentiment from the previous quarter, where 48 hedge funds owned stakes worth almost $2.83 billion in Intercontinental Exchange, Inc. (NYSE:ICE).
In the first quarter earnings published on May 5 by Intercontinental Exchange, Inc. (NYSE:ICE), the EPS totaled $1.43, beating estimates by $0.01. The $1.9 billion revenue jumped 5.6% year-over-year, in line with estimates.
On May 6, Deutsche Bank analyst Brian Bedell reiterated a Buy recommendation on Intercontinental Exchange, Inc. (NYSE:ICE) but lowered his price target on the shares to $143 from $161. According to the analyst, Black Knight, Inc. (NYSE:BKI) transaction is a game changer for ICE’s growth. On the ICE standalone business, he cut profit projections marginally and believed the value would be restricted until more confidence about the merger completion emerges.
In its Q2 2021 investor letter, Oakmark Funds mentioned Intercontinental Exchange, Inc. (NYSE:ICE). Here is what the fund said:
“Intercontinental Exchange is one of the largest and, in our view, most successful financial exchange operators in the world. The company was created through a series of shrewd acquisitions executed by their founder and CEO Jeff Sprecher. Sprecher is one of the more capable CEOs we’ve evaluated, having demonstrated a long history of astute capital allocation and a willingness to act and adapt rapidly to new opportunities and competitive threats. Today, Intercontinental Exchange competes in three primary business segments: exchanges, fixed income/data services and mortgage technology. We believe each of these businesses exhibits attractive economic characteristics and that each should grow earnings well in excess of GDP over the long term. Despite this favorable long-term outlook, the company currently trades at a P/E ratio that is roughly in line with the S&P 500. We believe a business with Intercontinental Exchange’s strong competitive position, excellent management team and attractive growth outlook deserves to trade well above a market multiple. We like buying great businesses at average prices and believe Intercontinental Exchange represents a compelling opportunity to do just that.”
