Will BGC Partners, Inc. (NASDAQ:BGCP) rip to new highs anytime soon? Who knows, but much of it depends on what analysts believe and what action the company’s insiders pursue. The stock closed higher on 07 November. The shares accumulated 0.15 points or 1.36 percent at $11.17 with a heavy trade volume of 2.758 million shares. After opening the session at $11.08, the shares went as high as $11.2 and as low as $10.98, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $5.42 billion and now has 485.58 million shares outstanding. BGC Partners, Inc. (BGCP) stock has lost -2.19 percent of market value in 21 trading days.
BGCP stock has a trailing 3-year beta of 1.1, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.65 a share in the trailing twelve months. The stock’s value has fallen -26.08 percent year to date (YTD) against a decline of -26.75 percent in 12 month’s time. The company’s shares still trade -34.18 percent away from its 1-year high of $16.97 and 10.78 percent up from 52-week low of $10.08. The average consensus rating on the company is 1.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.
BGC Partners, Inc. (BGCP) will probably climb 45.48 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $16.5-month high price target. This represents a whopping 47.72 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $16.25, which represents a return potential of 45.48 percent when compared to the closing price of the stock of $11.17 on Wednesday, November 07. The lowest price target for the stock is $16 — slightly more than 43.24 percent from BGCP’s current share price.
History has shown that shares in BGC Partners, Inc. have gone down on 18 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. Investors will get their next glimpse of BGCP’s Q4 earnings on February 13. Analysts are forecasting revenue to climb 16.7 percent to $1.04B in the fiscal fourth quarter, while earnings are seen soaring by nearly 2.86 percent to $0.36 per share. It earned $0.42 per share, worse than the $0.45, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $977M, better than the $971M analysts expected. Earnings are estimated to increase by -34 percent this year, 8.19 percent next year and continue to increase by 12.5 percent annually for the next 5 years.
Let’s take a look at some insider activity at BGC Partners, Inc. (NASDAQ:BGCP) and see the pattern. The earliest insider trade took place on 10/29/2018. Galvin Sean gathered a total of 20 thousand shares of company at average share price of $11.08. The total for the purchase was set at $221.6 thousand. After this transaction, the Chief Accounting Officer account balance stood at 20 thousand shares. The stock grew 0.81 percent since that insider purchase. On 08/02/2018, Moran William J, Director, purchased 10 thousand shares at a price per share of $11.09. This added 110.9 thousand shares to the insider’s fortune and the stock saw a 0.72 percent rally in value since the news became public. This transaction left 63.85 thousand shares in the Director account.
On 10/02/2017, Director Bell Linda A performed a sale transaction worth $200.66 thousand. This sale at $14.7 each has eliminated 13.65 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -24.01 percent decrease since the transaction was reported. The insider now is left with 19.96 thousand shares remaining in the account. Curwood Stephen T, who performs the Director job, sold 4 thousand shares for $36.64 thousand. The disposal occurred on 06/08/2015 was priced at $9.16 per share. The share price soared 21.94 percent since the reporting date. Curwood Stephen T now left with a stake of 20.02 thousand BGCP stock worth $223.58 thousand after the insider selling.
The stock is currently hovering around the first support level of $11.03. Below this, the next support is placed in the zone of $10.9. Till the time, the BGCP stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 52.31 on daily chart, which may remain a cause for concern. If the price breaks below $10.9 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $11.25 mark may result into a pull-back move towards $11.34 level.
Shares of BGC Partners, Inc. (BGCP) are trading at a P/E ratio of 17.06 times earnings reported for the past 12 months. The industry BGCP operates in has an average P/E of 18.49. Its P/E ratio went as low as 15.63X and as high as 34.99 over the 5-year span.Further, it is sporting a 1.5 on the Price-to-Sales ratio. Compare this with the industry average P/S of 6.86. 98.9 percent is the gross profit margin for BGC Partners, Inc. and operating margin sits at 2.2 percent. Along with this, the net profit margin is 2 percent.