Howard W Lutnick, Director at BGC Group BGC, reported an insider sell on May 19, according to a new SEC filing.
What Happened: Lutnick opted to sell 16,115,102 shares of BGC Group, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The transaction’s total worth stands at $148,391,082.
As of Monday morning, BGC Group shares are up by 1.74%, currently priced at $9.37.
Delving into BGC Group’s Background
BGC Group Inc is a brokerage and financial technology company that serves financial markets, energy, and commodities markets. Its service and product offerings include brokerage for a wide range of financial products, including fixed income, equities, commodities, derivatives, and real estate, software solutions for trading platforms, clearing, trade execution, and other back-office services. Its clients mostly include banks, financial institutions, and corporate clients. BGC operates in one reportable segment, which is providing brokerage services. Geographically, the company generates a majority of its revenue from Europe, Middle East and Africa (EMEA), followed by the Americas and the Asia-Pacific region.
BGC Group’s Economic Impact: An Analysis
Revenue Growth: BGC Group displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 14.72%. This indicates a notable increase in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Exploring Profitability:
-
Gross Margin: The company issues a cost efficiency warning with a low gross margin of 43.69%, indicating potential difficulties in maintaining profitability compared to its peers.
-
Earnings per Share (EPS): BGC Group’s EPS is below the industry average. The company faced challenges with a current EPS of 0.11. This suggests a potential decline in earnings.
Debt Management: With a below-average debt-to-equity ratio of 1.75, BGC Group adopts a prudent financial strategy, indicating a balanced approach to debt management.
Valuation Analysis:
-
Price to Earnings (P/E) Ratio: BGC Group’s current Price to Earnings (P/E) ratio of 35.42 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.
-
Price to Sales (P/S) Ratio: The P/S ratio of 1.93 is lower than the industry average, implying a discounted valuation for BGC Group’s stock in relation to sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 14.48 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.
Market Capitalization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Exploring the Significance of Insider Trading
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Transaction Codes Worth Your Attention
When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of BGC Group’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
