When thinking about the stock market, many people think of blue-chip companies with strong balance sheets that are stable and profitable. These are all good things but not what you should look for when investing in the stock market. A capital markets stock is a company that falls under the small-cap stocks category.
These are little companies with a small market capitalization (meaning their value is relatively low compared to other public companies). They also have relatively little public visibility and operate in niche markets with high growth potential.
These three types of capital markets stocks have specific characteristics that set them apart from other small-cap stocks. Here is an overview of each type and why you should consider investing in these types of stocks if you’re interested in investing in the stock market.
Artisan Partners Asset Management
According to Bloomberg, the six research firms currently monitoring Artisan Partners Asset Management Inc. (NYSE: APAM) have recommended “Hold” as their overall consensus for the company. This recommendation represents the overall opinion of the research firms regarding the company. Only one of the research analysts has recommended that prospective clients purchase the company, while the other four have advised clients to “hold” onto their shares of the company’s stock.
In recent times, APAM has been discussed at length in a variety of analyst publications that have been published. Keefe, Bruyette & Woods categorized Artisan Partners Asset Management as “market perform” in a research report published on Tuesday, June 28, and raised their target price for the company from $36.00 to $38.00 in a research report published on Tuesday, June 28. The study was released on the same day. As part of research published on Tuesday, August 9, Evercore ISI increased its price target on Artisan Partners Asset Management from its prior level of $30.00 to $35.00. The “buy” recommendation provided to Artisan Partners Asset Management was altered to a “hold” rating, as stated in a report that Bloomberg published on Friday, May 6.
Goldman Sachs Group lowered its price objective for Artisan Partners Asset Management in its most recent research, which was released on Thursday, July 14. The new price objective is $30.00, down from $33.50. Additionally, the company was given a rating of “neutral” by the investment bank. Recently, several well-known investors have modified their strategies to allocate their capital within APAM. Kayne Anderson Rudnick Investment Management LLC successfully increased its Artisan Partners Asset Management holdings by 80.2% throughout the second quarter. During the most recent quarter, Kayne Anderson Rudnick Investment Management LLC grew its holdings in the stock of the asset management by 3,028,362 shares, bringing its total holdings to 6,804,537 shares of the company’s stock with a market value of $242,037,000. During the first three months of 2018, Fisher Asset Management LLC increased its holdings in Artisan Partners Asset Management by 16.1% by purchasing additional shares. During the most recent quarter, Fisher Asset Management LLC increased its holdings in the asset manager’s stock by 223,267 shares, bringing its total holdings to 1,609,132 shares of the asset manager’s stock with a value of $63,319,000.
Fisher Asset Management LLC is a limited liability company that manages assets. Wasatch Advisors Inc. increased the proportion of its own in Artisan Partners Asset Management by 25.3% over the first three months of 2018. After the most recent acquisition of 221,893 shares during the most recent quarter, Wasatch Advisors Inc. now has 1,097,574 shares of the asset manager’s stock, worth $43,190,000. This brings the entire value of the company’s holdings to $43,190,000. Royce & Associates LP increased the amount of its investment in Artisan Partners Asset Management by 32.7% during the second quarter of the fiscal year. Royce & Associates LP now has 894,818 shares under management after purchasing an additional 220,505 shares during the most recent quarter for a total of 894,818. These shares are currently worth a total of $31,829,000 as of right now. Last but not least, during the first three months of 2018, Renaissance Technologies LLC paid Artisan Partners Asset Management $8,173,000 to buy a new interest. This transaction took place during the first quarter. Hedge funds and other institutional investors hold the total number of shares issued by the company to the extent that these investors hold 66.91% of the total. APAM stock began trading for the first time on Monday, and it did so for $34.65 a share.
The company’s moving average price over the past 50 days is $37.00, while the company’s moving average price over the last 200 days is $37.02. The company has a market value of $2.76 billion, a price-to-earnings ratio of 8.51, and a beta of 1.71. On August 2, Artisan Partners Asset Management released its most recent earnings report. Artisan Partners Asset Management is a company that trades on the NYSE under the symbol APAM. The asset management company reported $0.79 per share earnings for the quarter, which was $0.05 less than the consensus estimate of $0.84 per share. Artisan Partners Asset Management had a return on equity of 131.59%, and the company’s net margin came in at 24.10%. However, the real sales for the firm came in at $251.40 million, which is less than the $264.51 million expected by industry analysts for the company’s sales for the quarter. Actual sales for the company for the quarter came in at $251.40 million. The company reported $1.28 per share earnings for the same quarter in the prior year’s financial statements.
The projections of market analysts suggest that Artisan Partners Asset Management will generate $3.17 per share in revenue during the current fiscal year. On August 17, shareholders of record will be eligible to receive a dividend payment of $0.60 per share. This payment will be made available. According to those calculations, this corresponds to a yearly dividend of $2.40 and a yield of 6.93%. The date that dividends will no longer be paid is August 16. At the moment, Artisan Partners Asset Management has a dividend payout ratio sitting at 58.97%. The business of managing investments is what Artisan Partners Asset Management, Inc. specializes in doing. The company’s name is Artisan Partners Asset Management. The company provides services to customers, such as trusts, endowments, foundations, charitable organizations, government agencies, and private funds, such as non-US funds, mutual funds, collective trusts, and non-US funds. The company also serves government agencies.
Interactive Brokers Group
The overall number of short positions in shares of Interactive Brokers Group, Inc. saw a substantial drop during August (NASDAQ: IBKR). Compared to the previous figure of 2,490,000 shares borrowed as of July 31, the number of shares that were borrowed as of August 15 was 1,980,000, a decrease of 20.5% from the previous figure. The days-to-cover ratio currently stands at 2.2 days at this time. This figure was arrived at by considering that the typical daily volume of trade is 916,500 shares. In recent times, a lot of market analysts have expressed their views on the IBKR stock in a variety of different ways. Compass Point said in a research note released on Friday, June 3, that they had decreased their target price on Interactive Brokers Group stock to $85.00. The announcement was made about the stock’s recent decline in price.
Bloomberg’s previous recommendation for Interactive Brokers Group was changed from “sell” to “hold” in a report that was made public on July 19, and it was announced that the change had taken place that day. The NASDAQ IBKR market opened for trade on Monday at $61.61 per share. This company currently has a simple moving average of fifty days at $58.71, and its simple moving average of two hundred days is currently at $60.99. The price-to-earnings ratio for the company is 24.07, the price-to-earnings-to-growth ratio is 0.91, and the beta value is 0.79. The total value of the corporation, as represented by its market capitalization, is $25.76 billion. In the past year, Interactive Brokers Group reached an all-time high of $82.83 and an all-time low of $52.18. Both of these prices were recorded in the previous year.
The quarterly results report that the Interactive Brokers Group (NASDAQ: IBKR) had been working on was finally published on Tuesday, July 19. The provider of financial services declared a quarterly profit of $0.84 per share, which was $0.07 less than the consensus forecast of $0.91 per share from market experts. The net margin for Interactive Brokers Group was 9.64%, while the company’s return on equity was 3.13%. In comparison, the company earned $0.82 per share according to the previous year’s results. The company’s revenue had a 13.0% decrease compared to the same quarter in the prior year. The investigators have projected that each share of Interactive Brokers Group will bring in $3.75 in revenue this year. The company has only recently announced a quarterly dividend, and the date of its distribution has been set for September 14. Shareholders who were “on record” as of the record date, Thursday, September 1, will be eligible to receive a $0.10 dividend payment per share.
When computed on an annualized basis, this results in a dividend payment of $0.40 and a dividend yield of 0.65%. The ex-dividend day for this payout is scheduled for Wednesday, August 30, the following week. Interactive Brokers Group’s dividend payout ratio (also known as the DPR) is currently at 15.63 percent. Additionally, on Monday, June 6, 20,000 shares of company stock were sold by Thomas Peterffy, the firm’s chairman. This transaction took place during the regular trading session. As a direct consequence of the transaction, the chairman now owns 2,327,511 shares of the company’s stock. The total value of these shares is $141,675,594. 57). Legal paperwork about the deal has been sent to the Securities and Exchange Commission, and you can look at it on this website whenever it works best for you. Business insiders were responsible for the sale of 440,000 shares of company stock for a total of $24,923,800 during the preceding ninety days.
Insiders of the company hold direct ownership of a total of 5.72% of the company’s shares of stock. Conducting Business on Behalf of the Interactive Brokers Group with various financial institutions Recent events have resulted in institutional investors and hedge funds modifying the amount of a certain company’s stock that is held inside their portfolios. FDx Advisors Inc. now owns 18,958 shares of the common stock of the financial services provider, which has a value of $1,250,000 following the purchase of an additional 1,279 shares during the first quarter. FDx Advisors Inc.’s interests in Interactive Brokers Group have grown by 7.2% due to this increase in the company’s holdings. In the last three months of 2018, JPMorgan Chase & Co. boosted the percentage of Interactive Brokers Group stock, which is owned by 1.5%. JPMorgan Chase & Co. now has a total of 120,354 shares of the company, which has a market value of $9,559,000, following the purchase of an additional 1,832 shares during the most recent quarter. Atria Investments LLC boosted the proportion of Interactive Brokers Group stock owned by 1.2% over the first quarter.
Atria Investments LLC now holds a total of 53,513 shares of the financial services provider’s stock, which are currently valued at $3,527,000 following the acquisition of an additional 615 shares during the most recent quarter. The National Bank of Canada Financial Institutional Investor increased the amount of Interactive Brokers Group stock owned by 1,217.5% during the first three months of 2018. National Bank of Canada FI increased its holdings in the financial services provider’s stock by purchasing an additional 62,289 shares during the most recent quarter, bringing its total number of shares owned in the company’s common stock to 67,405, with a value of $4,442,000. Lastly, but most certainly not least, Assenagon Asset Management S.A. increased the proportion of Interactive Brokers Group in which it is invested by 2,130.4% during the first quarter. This is surely not the least important development. After purchasing an additional 317,494 shares during the period, Assenagon Asset Management S.A. now holds a total of 332,397 shares of the financial services provider’s stock, which has an estimated value of $21,908,000.
To the tune of 20.49 percent of the company’s shares, hedge funds and other types of institutional investors are the owners of these holdings. Specifics and facts regarding The Interactive Brokers Group, Inc. The Interactive Brokers Group, Inc is a multinational corporation that functions as an automated electronic broker. The organization’s principal focus is on trading various financial instruments, including but not limited to equities, options, futures, bonds, foreign currency products, exchange-traded funds (ETFs), commodities, and cryptocurrencies. It also manages the accounts of registered investment advisers, mutual and hedge funds, exchange-traded funds (ETFs), proprietary trading groups, introducing brokers, and individual investors.
Franklin Resources
MarketBeat reports that each of the nine analysts who follow Franklin Resources, Inc. (NYSE: BEN) has assigned the stock an average rating of “Hold.” Three monetary analysts have given the stock a recommendation to sell, while five others have advised investors to maintain their current holdings. Most analysts who have written reports about the company in the prior year have set a price target of $26.88 for the company in one year. In recent times, BEN has received feedback from various research firms. In a research note issued on June 1, BMO Capital Markets announced that they would decrease their target price for Franklin Resources from $29.00 to $27.00. In a research note issued on Friday, August 12, Deutsche Bank Aktiengesellschaft raised their rating on Franklin Resources from “hold” to “buy” and raised their price objective for the company from $26.00 to $29.00.
In a research note released on Thursday, June 30, Morgan Stanley dropped their price objective for Franklin Resources from $27.00 to $21.00 and changed their rating for the company from “overweight” to “underweight.” On Tuesday, June 28, the Goldman Sachs Group published a research study in which they discussed Franklin Resources for the first time. They recommended a “sell” price of $23.00 and set a price target for the shares of that amount. In a research note published on Monday, August 1, UBS Group raised their price objective on Franklin Resources from $24.00 to $27.00 and rated the company as “neutral.” Despite this being the last point of discussion, it is important to note that UBS Group did increase its price objective. On Monday, trading of BEN shares got underway for $26.49. The current and quick ratios are equal to one, while the debt-to-equity ratio stands at 0.72. The lowest price of Franklin Resources over the last year is $22.61, while its highest price over the past year is $38.27. The company’s market capitalization is estimated to be $13.20 billion based on a P/E ratio of 7.88, a PEG ratio of 4.76, and a beta of 1.20. The stock’s fifty-day and 200-day moving averages are currently sitting at $25.87 and $26.55, respectively. The most recent quarterly report for Franklin Resources (NYSE: BEN) was made available on July 28. The closed-end fund produced $0.82 per share for the quarter, which is $0.09 more than the average expectation of $0.73 per share, which was $0.73.
The final sales tally for the quarter came in at $2.03 billion, far lower than the $2.75 billion analysts had anticipated. The net margin for Franklin Resources was 20.25 percent, and the return on equity was 17.37 percent. The decline in sales at Franklin Resources was 6.5% compared to the previous year’s period. During the same period as the previous year, the company posted profits per share of $0.96. According to estimates provided by sell-side analysts, Franklin Resources should generate earnings of 3.6 cents per share in 2018. Additionally, the company has just announced and distributed a quarterly dividend paid out on Friday, July 15. On Thursday, June 30, a dividend payment of $0.29 was made to investors already on record. On June 29, a dividend was distributed to the shareholders. This translates into a dividend yield of 4.38% and a dividend payment of 1.16 dollars per year. The dividend payout ratio (DPR) for Franklin Resources is now at 34.52%. In other recent developments about Franklin Resources, Director Mariann H. Byerwalter disposed of 3,135 shares of the company’s stock on June 15.
The shares were purchased for $73,264.95, an average price of $23.37 per share. As a direct result of the transaction, the director now possesses 11,523 company stock shares with a combined value of $269,292.51. The details regarding the transaction can be found in the lawsuit file filed by the Securities and Exchange Commission, which can be accessed at this URL. In other news, Franklin Resources Inc. purchased 36,266 shares of Franklin Resources stock on Tuesday, July 5. The entire cost of purchasing the shares was $163,559.66, an average price of $4.51 per share. After the conclusion of the transaction, the company insider now directly owns 93,166 shares of the company’s stock, which is worth a total of $420,178.66. The Securities and Exchange Commission was provided with a report regarding the transaction, which can be found by following the link. On the same day, June 15, Mariann H. Byerwalter, a firm director, sold 3,135 shares of the company’s stock. The shares were purchased for $73,264.95, an average price of $23.37 per share.
Following the completion of the sale, the director now directly owns 11,523 shares with a combined value of $269,292.51. This is where you may see the disclosure that pertains to the sale. Insiders have made transactions totaling $33,344,686 during the most recent three months, buying 3,797,252 company stock and selling 77,502 shares for a total of $2,216,491. Insiders own 23.30 percent of the company’s total shares outstanding. Recently, several hedge funds have made changes to the way that they are now invested in BEN. During the last quarter of 2018, Envestnet Asset Management Inc. increased the percentage of Franklin Resources stock owned by 14.3%. After purchasing 24,057 shares during the most recent quarter, Envestnet Asset Management Inc. now owns 191,976 shares of the closed-end fund’s stock. The current market value of these shares is $6,429,000. In the last quarter, American Century Companies Inc. increased the percentage of Franklin Resources stock that it held by 1.0%.
As of the conclusion of the most recent quarter, American Century Companies Inc. had increased its holdings in the closed-end fund from the previous quarter’s 45,411 shares to a total of 45,411 shares, which had a value of $1,521,000. During the final three months of 2018, Victory Capital Management Inc. increased its holdings in Franklin Resources by 7.3%. After purchasing an additional 41,066 shares of the closed-end fund’s stock over the past three months, Victory Capital Management Inc. now owns a total of 602,481 shares of the fund’s stock, which has a value of $20,177,000. During the final three months of 2018, Mirae Asset Global Investments Co., Ltd. increased the percentage of Franklin Resources stock owned by 147.1%. Mirae Asset Global Investments Co., Ltd. now owns 36,644 shares of the closed-end fund’s stock after purchasing an additional 21,813 shares. The current market value of these shares is $1,227,000. Last but not least, during the last quarter of 2018, CIBC Asset Management Inc. increased the percentage of Franklin Resources stock owned by 5.1%. After purchasing an additional 1,715 shares during the quarter, CIBC Asset Management Inc now has 35,576 shares of the closed-end fund’s stock.
The current market value of these shares is $1,191,000. Institutional investors hold the company’s stock at 43.50 percent. Concerning Franklin Resources, Franklin Resources, Inc. is a publicly listed asset management holding company, and its subsidiaries offer services to individuals, organizations, pension plans, trusts, and partnerships. The firm is known as Franklin Resources. It sells mutual funds that invest in stocks, fixed income, balanced portfolios, and other assets through its subsidiaries.
