FXCM Inc. (FXCM) to Sell FXCM Japan For $62 Million

FXCM Inc. (FXCM) shares are trading higher by more than 8% in the pre-market session Wednesday following news of an agreement to sell FXCM Japan Securities Co., Ltd to Rakuten Securities, Inc., a top 5 FX broker in Japan, for a purchase price of approximately $62 million.

FXCM said the transaction is expected to close on April 1, 2015 and that the final purchase price will be based on FXCM Japan’s March 31, 2015 balance sheet.

“We are pleased to announce this transaction with Rakuten Sec, as they are an innovative and strong firm,” said in a statement Drew Niv, CEO of FXCM. “We are confident that they will provide the same level of excellent service and trading environment that our account holders have experienced at FXCM.”

FXCM shares recently gained $0.18 to $2.25. In the past 52 weeks, shares of the New York-based firm have traded between a low of $1.28 and a high of $17.44. Fundamentally, the name shows the following financial data:

  • $338.84 million in cash in most recent quarter
  • $2.39 billion t-12 total assets
  • $643.02 million total equity
  • $460.80 million t-12 revenue
  • $17.15 million annual net income
  • $167.63 million free cash flow

On valuation measures, FXCM Inc. shares have a T-12 price/sales ratio of 0.23 and a price/book for the same period of 0.36. EPS is $0.35. The name has a market cap of $107.49 million and a median Wall Street price target of $1.50 with a high target of $19.00. Currently there are no analysts that rate FXCM a ‘Buy’, 3 rate it a ‘Hold’. 5 analyst rate it a ‘Sell’.

In terms of share statistics, FXCM Inc. has a total of 47.16 million shares outstanding with 17.28% held by insiders. The stock’s short interest currently stands at 29.12%, bringing the total number of shares sold short to 12.12 million.

Offering a dividend yield of 11.59%, shares of the online foreign exchange provider are down 87.04% year-over-year and 87.51% year-to-date.

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