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NEW YORK - BGC Group, Inc. (NASDAQ:BGC), a prominent brokerage and financial technology firm with a market capitalization of $4.5 billion, has repurchased a significant number of shares from Howard W. Lutnick, the company’s former Chairman and CEO and current U.S. Secretary of Commerce. The transaction is part of Lutnick’s commitment to U.S. government ethics rules. According to InvestingPro data, BGC maintains a "Good" Financial Health Score of 2.54, supported by robust operational metrics and strong cash management.
The company has agreed to buy back 16,452,850 shares of BGC Class A common stock at a price of $9.2082 per share, the volume weighted average price on the Nasdaq Global Select Market for May 14th, 15th, and 16th, 2025, with a total purchase price of approximately $151.5 million. The repurchase price aligns closely with current market valuation, though analysts tracking the stock maintain price targets between $14 and $15, suggesting potential upside opportunities.
Jason Hauf, BGC’s Chief Financial Officer, stated that the share repurchase reflects the company’s dedication to returning capital to shareholders. Hauf cited BGC’s strong first-quarter performance and projected cash flow for the year as reasons for the buyback being a prudent use of capital that should benefit shareholders.
In addition to the share repurchase, Lutnick has arranged to transfer his ownership interest in Cantor Fitzgerald to trusts for the benefit of his adult children, including Brandon G. Lutnick and Kyle S. Lutnick, who hold leadership positions at Cantor Fitzgerald. These transactions are pending regulatory approvals and are expected to close in the third quarter of 2025.
The sale of BGC shares will conclude today, with a portion held in retirement accounts to follow after the completion of the Cantor Fitzgerald transactions. Lutnick will also sell his BGC Class B shares to Cantor Fitzgerald, with the sale set to close in conjunction with the Cantor Fitzgerald dealings.
This series of transactions will divest Lutnick’s ownership, voting, and economic interests in BGC, aligning with his government ethics agreement. Despite these changes, Cantor Fitzgerald will remain the largest and controlling shareholder of BGC.
Further information on the divestiture will be available in the Forms 8-K and 13D filings with the Securities and Exchange Commission (SEC). This news is based on a press release statement from BGC Group, Inc.
In other recent news, BGC Group, Inc. has completed its acquisition of OTC Global Holdings for $325 million, a move expected to immediately enhance BGC’s earnings. OTC Global Holdings reported revenues exceeding $400 million for 2024, indicating a favorable acquisition multiple for BGC. In addition, BGC Group announced the pricing of a $700 million private offering of senior notes, with plans to use the proceeds to manage existing debt and for general corporate purposes. The company has also reaffirmed its financial outlook for the first quarter of 2025, maintaining its revenue and pre-tax adjusted earnings projections.
Piper Sandler has maintained an Overweight rating on BGC Group, setting a price target of $12.00, following a recent investor dinner where BGC’s new management expressed confidence in continuing the company’s operations smoothly. The acquisition of OTC Global Holdings is seen as a strategic move that positions BGC as the largest energy and commodities broker globally. Meanwhile, Piper Sandler analyst Patrick Moley has highlighted CME Group Inc. and Cboe Global Markets Inc. as favorable investments amid ongoing trade war volatility, due to their sensitivity to transaction volumes.
Cboe Global Markets is viewed as a strong defensive play, with expectations of continued volume strength, while CME Group is considered a safe haven during uncertain times. Nasdaq Inc. faces challenges from recent market volatility, affecting IPO activity and sales growth prospects. Robinhood Markets Inc.’s performance is tied to the resilience of the retail trader, with questions about its ability to regain previous highs. These developments reflect the dynamic landscape of the financial markets and the strategic maneuvers companies are making to navigate current economic conditions.
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