Bgc Partners Cl currently holds roughly 507.32
M in cash with 470.83
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.38.
Volatility is a rate at which the price of BGC Partners or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of BGC Partners may increase or decrease. In other words, similar to BGC's
beta indicator, it measures the risk of BGC Partners and helps estimate the fluctuations that may happen in a short period of time. So if prices of BGC Partners fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our
technical analysis page.
How important is BGC Partners's Liquidity
BGC Partners
financial leverage refers to using borrowed capital as a funding source to finance BGC Partners ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. BGC Partners financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to BGC Partners' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of BGC Partners' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between BGC Partners's total debt and its cash.
Is BGC Partners valued sensibly by the market?
The big decline in price over the last few months for Bgc Partners Cl could raise concerns from insiders as the firm is trading at a share price of
3.09 on
526,162 in volume. The company directors and management failed to add value to investors and position the firm supply of money to exploit
market volatility in
April. However, diversifying your holdings with Bgc Partners Cl or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.54. The current volatility is consistent with the ongoing market swings in
April 2022 as well as with Bgc Partners unsystematic, company-specific events.
| 2019 | 2020 | 2021 | 2022 (projected) |
Interest Expense | 60.25 M | 76.61 M | 69.33 M | 67.97 M | Gross Profit | 2.1 B | 2.06 B | 2.02 B | 2.16 B |
Will Bgc Partners insiders exit after the decline?
The treynor ratio is down to -0.46 as of today. Bgc Partners Cl exhibits very low volatility with skewness of 0.1 and kurtosis of 1.79. However, we advise investors to further study Bgc Partners Cl technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bgc Partners' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bgc Partners' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Bgc Partners Implied Volatility
Bgc Partners' implied volatility exposes the market's sentiment of Bgc Partners Cl stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bgc Partners' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Bgc Partners stock will not fluctuate a lot when Bgc Partners' options are near their expiration.
Although other companies in the capital markets industry are either recovering or due for a correction, Bgc Partners may not be performing as strong as the other in terms of long-term growth potentials. The bottom line, as of the 20th of May 2022, we see that Bgc Partners almost mirrors the market. The firm is
undervalued with
average odds of distress within the next 24 months. Our latest 90 days buy vs. sell advice on the firm is
Strong Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of BGC Partners. Please refer to our
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