BGC Group Inc. (NASDAQ: BGC) stock jumped 1.69% on Monday to $5.41 against a previous-day closing price of $5.32. With 3.23 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.98 million shares. During the session, the Capital Markets company that operates in wider Financial sector, reached to the highest price of $5.47 whereas the lowest price it dropped to was $5.28. The 52-week range on BGC shows that it touched its highest point at $5.51 and its lowest point at $3.14 during that stretch. It currently has a 1-year price target of $7.50. With its current market cap of 2.69 billion, BGC has annualized dividend of $0.04 while the current yield stands at 0.74%. Beta for the stock currently stands at 1.69.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BGC was up-trending over the past week, with a rise of 4.44%, but this was up by 7.98% over a month. Three-month performance surged to 12.71% while six-month performance rose 5.05%. The stock gained 33.25% in the past year, while it has gained 43.50% so far this year. A look at the trailing 12-month EPS for BGC yields 0.02 with Next year EPS estimates of 0.91. For the next quarter, that number is 0.18. This implies an EPS growth rate of -60.50% for this year and 13.75% for next year. EPS is expected to grow by 20.48% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 20.40%.
Float and Shares Shorts:
At present, 391.75 million BGC shares are outstanding with a float of 367.50 million shares on hand for trading. On Aug 30, 2023, short shares totaled 5.22 million, which was 1.05% higher than short shares on Jul 30, 2023. In addition to Mr. Howard W. Lutnick as the firm’s Chairman & CEO, Mr. Jason Williams Hauf serves as its Exec. VP & CFO.
Through their ownership of 69.78% of BGC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 34.27% of BGC, in contrast to 25.86% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in BGC with 8.45% of the stake, The Vanguard Group, Inc. holds 32,894,926 shares worth 32,894,926. A second-largest stockholder of BGC, BlackRock Fund Advisors, holds 20,138,600 shares, controlling over 5.17% of the firm’s shares. Rubric Capital Management LP is the third largest shareholder in BGC, holding 20,000,000 shares or 5.14% stake. With a 2.63% stake in BGC, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 10,249,942 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.26% of BGC stock, is the second-largest Mutual Fund holder. It holds 8,813,499 shares valued at 43.54 million. iShares Russell 2000 ETF holds 1.82% of the stake in BGC, owning 7,077,937 shares worth 34.97 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, BGC reported revenue of $435.76M and operating income of $64.16M. The EBITDA in the recently reported quarter was $45.79M and diluted EPS was $0.04.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BGC since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With BGC analysts setting a high price target of $7.50 and a low target of $7.50, the average target price over the next 12 months is $7.50. Based on these targets, BGC could surge 38.63% to reach the target high and rise by 38.63% to reach the target low. Reaching the average price target will result in a growth of 38.63% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Dividends & Yield:
In terms of dividends, BGC has a current ratio of $0.04, which is $0.04 over the trailing 12-months, while a dividend of $0.28 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and BGC currently yields $0.74. In the past year, BGC’s dividend yield has been $0.74, but when looking at the stock over the past five years, its yield has been $6.03. Accordingly, BGC has a current buyback yield of $10.19. This was $10.19 for the TTM, and it was $2.31 for the past five years.