Many stocks have been testing new highs in 2020, and one of the most notable is BGC Partners Inc. (BGCP). Currently, BGCP is trading at $3.29 and the avg recommendation for the stock is Moderate Buy.
To add more color to this target, the company’s high over the last year is $6.14 and the low is $2.07. Over the last 52 weeks, BGCP is down -46.46% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, BGCP reported a profit of $52.06 million. BGC Partners Inc. also saw revenues increase to $603.17 million. In addition, BGCP has free cash flow of -$80.22 million as of 03-2020 The company’s EBITDA came in at $89.64 million which compares well with its peers.
BGCP booked profit margins of 0.40%, its Return on Equity (ROE) is 1.20%, and its Return on Assets is 0.20%. All told, it is clear that, BGCP needs to be on your watchlist.
About BGC Partners Inc.
If readers are unfamiliar, BGC Partners, Inc. operates as a brokerage and financial technology company in the United States, the United Kingdom, rest of Asia, France, the Middle East, Africa, rest of Europe, and internationally. It offers various brokerage products, such as fixed income, foreign exchange, equities, energy and commodities, insurance, and futures. The company also provides other services that include trade execution, broker dealer, clearing, trade compression, post-trade, information, and other back office services to financial and non-financial institutions. In addition, it offers fully electronic brokerage, financial technology solutions, market data, post-trade services, and analytics related to financial instrument and markets under the Fenics, BGC Trader, CreditMatch, Fenics Market Data, BGC Market Data, kACE2, EMBonds, Capitalab, Swaptioniser, CBID, and Lucera brand names. Further, the company provides screen-based market solutions, which enable its clients to develop a marketplace, trade with their customers, issue debt, trade odd lots, access program trading interfaces, and access its network and intellectual property; software and technology infrastructure for the transactional and technology related elements; and option pricing and analysis tools. It primarily serves banks, broker-dealers, investment banks, trading firms, hedge funds, governments, and corporations, as well as investment firms. BGC Partners, Inc. is headquartered in New York, New York.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. BGCP has a short ratio of 1.24 and outstanding shares of 358.00M.
BGCP has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 5.23 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.02. Investors should also keep an eye on sector updates as BGCP has historically followed its peers on positive news.
All told, BGC Partners Inc. BGCP has strung together solid data and demonstrated underlying fundamentals. At its current valuation, BGCP represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
BGC Partners Inc. BGCP is now commanding a market cap of 1.67B and a float of 449.17M. BGCP is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of BGCP stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in BGCP, either long or short, and we have not been compensated for this article.