Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified BGC Partners as such a stock due to the following factors:
- BGCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.1 million.
- BGCP has traded 94,687 shares today.
- BGCP is trading at 2.34 times the normal volume for the stock at this time of day.
- BGCP is trading at a new high 3.07% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on BGCP:
BGC Partners, Inc. operates as a brokerage company, primarily servicing the wholesale financial and commercial real estate markets. It operates through two segments, Financial Services and Real Estate Services. The stock currently has a dividend yield of 5.4%. BGCP has a PE ratio of 80.4. Currently there is 1 analyst that rates BGC Partners a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for BGC Partners has been 961,000 shares per day over the past 30 days. BGC has a market cap of $1.6 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.32 and a short float of 2.6% with 4.63 days to cover. Shares are up 44.5% year-to-date as of the close of trading on Friday.
rates BGC Partners as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- BGCP's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 7.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $51.67 million or 21.46% when compared to the same quarter last year. In addition, BGC PARTNERS INC has also vastly surpassed the industry average cash flow growth rate of -182.14%.
- BGC PARTNERS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BGC PARTNERS INC increased its bottom line by earning $0.35 versus $0.16 in the prior year. This year, the market expects an improvement in earnings ($0.63 versus $0.35).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Capital Markets industry and the overall market, BGC PARTNERS INC's return on equity is below that of both the industry average and the S&P 500.
- The gross profit margin for BGC PARTNERS INC is currently extremely low, coming in at 1.53%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.65% significantly trails the industry average.
- You can view the full BGC Partners Ratings Report.