TW - Tradeweb Markets: A Premium Trading Play

2024-04-09 15:16:01 ET

Summary

• Tradeweb Markets Inc. has seen strong momentum and growth, a trend which has been happening for years.
• The company announced the acquisition of Institutional Cash Distributors in a $785 million deal to expand its presence in the treasury investment market.
• Despite the positive performance, the steep valuations of Tradeweb's shares may deter some investors, but a potential narrowing of premium valuations could present a buying opportunity.

Early in 2023, I called shares of Tradeweb Markets Inc. ( TW ) a quality name, trading at a price which reflected these qualities. The company has proven to be a stable grower, and subsequently has been awarded premium valuations over time, as I failed to see appeal early last year when shares were trading in the $70s....

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