The Case for and Against BGC Partners, Inc. (BGCP)

BGC Partners, Inc. (BGCP) is an interesting player in the Financial space, with a focus on Investment Brokerage – National. The stock has been active on the tape, currently trading at $11.87, down from yesterday’s close by -0.42%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

BGC Partners, Inc. (BGCP) currently trades with a market capitalization of $3.67 Billion. That value represents a market adjusting for revenues that have been growing by 24.37 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $191.46 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.27 on a per share basis this quarter. Perhaps, that suggests something about why 4.71% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, BGC Partners, Inc. recorded a 52-week high of $16.97. It is now trading 5.1% off that level. The stock is trading $12.58 its 50-day moving average by 0.71%. The stock carved out a 52-week low down at $10.65.

In recent action, BGC Partners, Inc. (BGCP) has made a move of -2.14% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.11, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 0.86% with $257.82 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of BGCP.

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