Why Tradeweb Markets shares are up nearly 5% today

Market players were eagerly trading Tradeweb Markets (TW 4.58%) on Friday, following a business update issued by the company that morning. Also helping sentiment was an upbeat new analyst research note on the financial services major. This combination boosted Tradeweb’s share price by almost 5% on the day, which compares quite favorably with S&P 500 0.9% gain of the index.

A month and a quarter of new records

On Friday morning, Tradeweb published its latest monthly operational updates. In it, the financial services company said it hit a new record with $56 trillion in total trading volume for the month of September. It also turned in a record high, with average daily volume (ADV) up 68% year-over-year to $2.6 billion.

The move throughout the third quarter revealed another all-time high; total volume was nearly $148 trillion, while ADV for the period was $2.2 trillion, another record. The latter figure represented a 55% improvement on the previous year’s result.

The asterisk in all of this is a series of acquisitions the company has made recently. Furthermore, in the update Tradeweb quoted CEO Billy Hult as saying that the strong growth figures were the result of “continued momentum across all asset classes”.

Exceeding expectations

These figures were enough to inspire TD Cowen analyst Bill Katz to write a new research note on Tradeweb. Katz reiterated his buy recommendation with a price target of $139 per share per share. He wrote that the company’s ADV “far exceeded our model — across the board and in major revenue centers.”