Time To Be Bullish Or Bearish On BGC Partners, Inc. (BGCP)?

Analysts at Raymond James lifted target price for shares of BGC Partners, Inc. (NASDAQ:BGCP) but repeated their Strong Buy recommendation for the stock in their opinion released on July 29. The price target has been raised from $12 to $14. Raymond James analysts bumped their recommendation on BGCP stock from Outperform to Strong Buy in a separate flash note to investors on July 06.

How do you judge Wall Street’s opinion of BGCP stock? You could look at price, sure. But that doesn’t tell the whole story. Short sellers are getting bullish about BGC Partners, Inc. (NASDAQ:BGCP) during the most recent two-week period. Looking at the sentiment indicator for the BGCP stock we see that the short-interest ratio is at 1.932919 while the average analyst recommendations at 1.5 suggests selling these shares. Between October 31 and November 15, the total number of shorted shares amounted to 4.09 million shares. That was 11.08% less than the total of 4.6 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go up. Average daily volume for BGC Partners, Inc. at the November 15th settlement plunged to 2,114,076, as compared to 2,148,258 at the October 31st report. That brought days to cover 9.64% down from the 2.139245 days to cover recorded at the prior short interest data release.

By watching the trading activity of corporate insiders, it will become easier to get a sense of BGC Partners, Inc. (NASDAQ:BGCP)’s prospects. 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 lost -42.06 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 -42.11 percent retreat 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 -56.33 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 plunged -29.91 percent since the reporting date. Curwood Stephen T now left with a stake of 20.02 thousand BGCP stock worth $128.5 thousand after the insider selling.

BGC Partners, Inc. (BGCP) is expected to jump by 153.12 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $9-month high price target. This represents a whopping 40.19 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $7.34, which represents a return potential of 14.33 percent when compared to the closing price of the stock of $6.42 on Thursday, December 06. The lowest price target for the stock is $5.67 — slightly more than -11.68 percent from BGCP’s current share price.

The shares are currently floating around the first support level of $6.16. Below this, the next support is placed in the zone of $5.91. Till the time, the BGCP stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 38.3 on daily chart, which may remain a cause for comfort. If the price breaks below $5.91 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $6.55 mark may result into a pull-back move towards $6.69 level.

BGCP shares accumulated 0.08 points or 1.26 percent on Thursday to $6.42 with a heavy trade volume of 6.266 million shares. After opening the session at $6.27, the shares went as high as $6.43 and as low as $6.04, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.11 billion and now has 484.91 million shares outstanding. BGC Partners, Inc. (BGCP) stock has lost -10.7 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 -33.93 percent year to date (YTD) against a decline of -39.53 percent in 12 month’s time. The company’s shares still trade -41.17 percent away from its 1-year high of $10.91 and 1.42 percent up from 52-week low of $6.33. 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.

Shares of BGC Partners, Inc. (BGCP) are trading at a P/E ratio of 16.21 times earnings reported for the past 12 months. The industry BGCP operates in has an average P/E of 33.26. 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 0.86 on the Price-to-Sales ratio. Compare this with the industry average P/S of 4.78. 98.9 percent is the gross profit margin for BGC Partners, Inc. and operating margin sits at 4.1 percent. Along with this, the net profit margin is 2.6 percent.

BGCP will be showing off its Q4 earnings on February 13. Analysts are forecasting revenue to climb 16.7 percent to $1.04B in the next fiscal quarter, while earnings are seen soaring by nearly 2.86 percent to $0.36 per share. 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. In last reported earnings results, 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.