The stocks of US forex leader Forex Capital Markets (FXCM Inc.) (NASDAQ:FXCM) finished 2016 with a 52-week low of $7.0 per share. On December 30 the stocks of the forex broker opened at $7.20, slid to $7 and eventually closed at $7.05. Throughout the last trading day of 2016, a total of 53 569 FXCM shares changed hands and left the company with a market capitalization of $39.5 million.
The $7 price is still far from the January 2015 plummet to $1.47 after the announcement of the $300 million bailout loan from Leucadia National Corporation (NYSE: LUK) or the all-time low, when on September 15, 2015, FXCM’s stocks closed at $0.81. Nevertheless, the data shows that in 2016 FXCM lost 57.86% of its value.
Meanwhile, the site Recall News quoted Wall Street analysts who gave a consensus price target of $6 per stock. The consensus recommendation provided by analysts is 4.00 on a scale from 1 to 5. Analysts rating the company a 1 or 2 indicate a Buy recommendation. Analysts rating the company a 4 or 5 indicate a Sell recommendation. Analysts rating the company a 3 indicate a Hold recommendation.
FXCM was established in 1999 in New York and is the leader on the US forex market. In December 2010 the broker went public and began trading on the NYSE and became the first US forex broker to IPO. The initial public offering price was $14.00 per share.
FXCM is a registered futures commission merchant (FCM) and a retail foreign exchange dealer (RFED) with the US CFTC. FXCM Group has units registered and regulated with the relevant authorities in the US (FXCM US), the EU (FXCM UK) and Australia (FXCM AU) and affiliates.
The broker offers forex, contracts for difference (CFDs), and spread betting services. It offers 40 currency pairs on the Trading Station and MetaTrader 4 (MT4) trading platforms.
FXCM also offers educational courses on forex trading and provides free news and market research through DailyFX.com. FXCM Pro provides retail brokers, small hedge funds and emerging market banks access to wholesale execution and liquidity, while providing high and medium frequency funds access to prime brokerage services via FXCM Prime.
FXCM Group is owned by FXCM Inc. (50.1%) and Leucadia National Corporation (NYSE:LUK).
Most recently FXCM reported that its November trading volumes have improved from October, when they were particularly bad. Also in November the broker said it is expanding to South Africa through an introducing broker and in September obtained an Israeli forex license.
Also in September FXCM sold its financial news and analysis site DailyFX to IG Group for $40 million in order to finance the repayment of its loan to Leucadia.