BGC Partners (NASDAQ:BGCP) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research cut shares of BGC Partners (NASDAQ:BGCP) from a hold rating to a sell rating in a research report released on Monday morning, Zacks.com reports.

According to Zacks, “BGC PARTNERS, INC. is a leading global full-service inter-dealer broker, specializing in the trading of financial instruments and related derivatives products. BGC Partners provides integrated voice, hybrid, and fully electronic execution and other brokerage services to some of the world’s largest and most credit worthy banks, broker-dealers, investment banks and investment firms for a broad range of global financial products, including fixed income securities, foreign exchange, equity derivatives, credit derivatives, futures, structured products and other instruments. Through its eSpeed and BGCantor Market Data brands, BGC also offers financial technology solutions and market data and analytics related to selected financial instruments and markets. Named after fixed income trading innovator B. Gerald Cantor, BGC Partners has offices in New York and London, as well as in Beijing, Chicago, Copenhagen, Hong Kong, Istanbul, Mexico City, Nyon, Paris, Seoul, Singapore, Sydney, Tokyo and Toronto. “

Separately, BidaskClub raised shares of BGC Partners from a hold rating to a buy rating in a research report on Saturday, July 6th. Two research analysts have rated the stock with a sell rating, one has given a buy rating and one has assigned a strong buy rating to the company’s stock. BGC Partners has an average rating of Hold and an average target price of $11.00.

Shares of BGCP opened at $5.07 on Monday. BGC Partners has a 1 year low of $4.46 and a 1 year high of $12.65. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.09 and a current ratio of 1.11. The stock has a 50 day moving average of $5.38. The firm has a market cap of $1.78 billion, a PE ratio of 7.04 and a beta of 1.39.

BGC Partners (NASDAQ:BGCP) last released its earnings results on Thursday, July 25th. The financial services provider reported $0.17 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.01). The company had revenue of $551.20 million during the quarter, compared to analyst estimates of $546.65 million. BGC Partners had a net margin of 6.98% and a return on equity of 35.34%. BGC Partners’s revenue was up 12.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.30 EPS. As a group, analysts anticipate that BGC Partners will post 0.63 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 28th. Shareholders of record on Wednesday, August 14th will be issued a dividend of $0.14 per share. The ex-dividend date of this dividend is Tuesday, August 13th. This represents a $0.56 dividend on an annualized basis and a yield of 11.05%. BGC Partners’s dividend payout ratio is currently 77.78%.

A number of hedge funds have recently made changes to their positions in BGCP. Principal Financial Group Inc. lifted its holdings in BGC Partners by 8.3% during the first quarter. Principal Financial Group Inc. now owns 18,685,542 shares of the financial services provider’s stock worth $99,223,000 after acquiring an additional 1,436,046 shares in the last quarter. Raymond James & Associates increased its stake in shares of BGC Partners by 12.2% in the first quarter. Raymond James & Associates now owns 11,229,356 shares of the financial services provider’s stock worth $59,628,000 after purchasing an additional 1,224,232 shares in the last quarter. Norges Bank purchased a new stake in shares of BGC Partners in the fourth quarter worth $14,373,000. Raymond James Financial Services Advisors Inc. boosted its position in shares of BGC Partners by 29.4% during the first quarter. Raymond James Financial Services Advisors Inc. now owns 2,267,419 shares of the financial services provider’s stock worth $12,040,000 after acquiring an additional 515,630 shares during the last quarter. Finally, Deutsche Bank AG boosted its position in shares of BGC Partners by 101.8% during the fourth quarter. Deutsche Bank AG now owns 1,901,296 shares of the financial services provider’s stock worth $9,827,000 after acquiring an additional 958,904 shares during the last quarter. 51.52% of the stock is owned by institutional investors and hedge funds.

About BGC Partners

BGC Partners, Inc operates as a brokerage and financial technology company worldwide. It offers various brokerage products, such as fixed income, foreign exchange, equities, energy and commodities, insurance, and futures. The company also provides other services that include trade execution, broker dealer, clearing, trade compression, post-trade, information, and other back office services to financial and non-financial institutions.

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