BGC Partners Inc. (NASDAQ: BGCP): The Best-Of-Breed For Investing?


    BlackRock Fund Advisors recently announced the acquisition of new stake in BGC Partners Inc. (NASDAQ:BGCP). The institutional investor has increased its shareholding in the Financial company by 15.50% to 13.15 million shares with purchase of 1.77 million shares. This fresh investment now brings its stake to 4.22% valued currently at $36.42 million. In addition, Mirabella Financial Services LLP raised its holdings by 9.44 million to 12.81 million shares. And SSgA Funds Management, Inc. has lifted its position by 58.42% or 2.39 million shares – to 6.48 million shares.

    With over 2.57 million BGC Partners Inc. (BGCP) shares trading Tuesday and a closing price of $2.56 on the day, the dollar volume was approximately $6.58 million. The shares have shown a positive weekly performance of 4.49% and its price on 09/01/20 gained nearly 1.59%. Currently, there are 360.61M common shares owned by the public and among those 288.22M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 2 analysts who have offered their price forecasts for BGCP have a consensus price objective of $7.00. The analysts have set the share’s price value over the next 12 months at a high of $7.00 and a low of $7.00 should the stock experience a downside. Incidentally, analysts’ outlook for the BGC Partners Inc. stock is 2.50 for the next 12 months. But an upside of 63.43% will see the stock hit the forecast high price target while mean target price for the stock is $7.00.

    Insiders at the company have transacted a total of 7 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 4 of these insider trades were purchases, accounting for 69,688 shares. Insider sales of the common stock occurred on 3 occasions, with total insider shares sold totaling 27,283 shares.

    The top 3 mutual fund holders in BGC Partners Inc. are Principal Investors – Small Mid C, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. Principal Investors – Small Mid C owns 8.19 million shares of the company’s stock, all valued at over $22.68 million. The company sold -0.43 million shares recently to bring their total holdings to about 2.63% of the shares outstanding. Vanguard Total Stock Market Index sold 9590.0 shares to see its total holdings shrink to 8.14 million shares valued at over $22.56 million and representing 2.61% of the shares outstanding. Vanguard Small Cap Index Fund sold 96419.0 shares to bring its total holdings to over 7.33 million shares at a value of $20.29 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.35% of the shares outstanding.

    Shares of BGC Partners Inc. (NASDAQ: BGCP) opened at $2.49, down -$0.03 from a prior closing price of $2.52. However, the script later closed the day at $2.56, up 1.59%. The company’s stock has a 5-day price change of 4.49% and -8.90% over the past three months. BGCP shares are trading -56.90% year to date (YTD), with the 12-month market performance down to -49.00% lower. It has a 12-month low price of $2.07 and touched a high of $6.14 over the same period. Currently, 2.57 million shares have been traded, compared to an average intraday trading volume of 4.22 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -3.48%, -5.45%, and -34.31% respectively.

    Institutional ownership of BGC Partners Inc. (NASDAQ: BGCP) shares accounts for 59.50% of the company’s 360.61M shares outstanding. Mutual fund holders own 22.85%, while other institutional holders and individual stakeholders account for 36.04% and 13.94% respectively.

    It has a market capitalization of $881.87M and a beta (3y monthly) value of 1.73. The stock’s trailing 12-month PE ratio is 46.55, while the earnings-per-share (ttm) stands at $0.06. The company has a PEG of 3.72 and the debt-to-equity ratio at 1.86. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.01% over the week and 4.24% over the month.

    Analysts forecast that BGC Partners Inc. (BGCP) will achieve an EPS of $Concrete Pumping Holdings, Inc. for the current quarter, $4.00 for the next quarter and $Stocks for Type. The lowest estimate earnings-per-share for the quarter is $GCP Applied Technologies Inc. while analysts give the company a high EPS estimate of $BLUESTEM GROUP INC. Comparatively, EPS for the current quarter was $Invesco BulletShares 2025 Corpo a year ago. Earnings per share for the fiscal year are expected to decrease by -55.10%, and 12.39% over the next financial year. EPS should shrink at an annualized rate of 12.50% over the next five years, compared to 57.50% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 2 brokerage firm advisors rate BGC Partners Inc. (BGCP) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 1 of the 2 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the BGCP, a number of firms have released research notes about the stock. Raymond James stated their Mkt Perform rating for the stock in a research note on March 27, 2020, with the firm’s price target at. Raymond James coverage for the BGC Partners Inc. (BGCP) stock in a research note released on July 29, 2015 offered a Strong Buy rating with a price target of $14. Raymond James was of a view on July 06, 2015 that the stock is Strong Buy, while Keefe Bruyette gave the stock Mkt Perform rating on February 01, 2010, issuing a price target of $5. Deutsche Securities on their part issued Buy rating on June 16, 2008.


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