Why Tradeweb Markets Stock Rocketed Nearly 5% Higher Today

Market players were eagerly trading into Tradeweb Markets (NASDAQ: TW) on Friday, following a business update the company issued that morning. What also helped sentiment was an analyst's bullish new research note on the financial-services specialist. This combination boosted Tradeweb's share price by nearly 5% on the day, comparing quite favorably to the S&P 500 index's 0.9% gain.

A month, and quarter, of new records

Friday morning, Tradeweb published that latest of its monthly operational updates. In it, the finance-sector company said that it notched a new record with $56 trillion in total-trading volume for the month of September. That also shook out into an all-time high with average-daily volume (ADV) increasing by a very robust 68% year over year to $2.6 billion.

Zooming out to the entirety of the third quarter revealed another all-time high; total volume was almost $148 trillion, while ADV for the period was $2.2 trillion, yet another record. The latter figure represented 55% improvement over the year-ago result.

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

Topping expectations

Those figures were sufficient to inspire TD Cowen analyst Bill Katz to author a new research note on Tradeweb. Katz reiterated his buy recommendation at a price target of $139 per share on the stock. He wrote that the company's ADV "broadly exceeded our model -- overall and across major revenue centers."

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.