FXCM Inc (FXCM) Shares Soar on Huge Volume, Yet a Lack of Solid News


On Wednesday, we reported that shares of FXCM Inc (NYSE:FXCM) stock were skyrocketing after several of the company’s executives made large insider purchases. However, that was two days ago, and considering the stock traded rather flat yesterday, this certainly isn’t the reason why it is soaring today, like many publications are reporting.

If you look at volume on shares of FXCM Inc (NYSE:FXCM) today, you would see that over 1.3 million shares have traded hands. If things continue the way they are, the daily volume will finish almost 10 times what the average volume of this stock is.

Something else is pushing this stock, other than insider purchases which were made two day ago. Is it simply the major pumping that is going on from the media, speaking of these 2-day old insider buys? Perhaps additional insider purchases are being made, forcing the hands of short sellers who need to cover their large shorts.

It should be interesting to follow this stock as the day goes one, and see if any announcements are made prior to the close before the weekend. The stock is up 33.41% or $2.93 today, hitting $11.7 per share. About 1.27M shares traded hands or up 338.01% from the average. FXCM has risen 504.83% since May 15, 2015 and is currently uptrending. It has outperformed the S&P500 by 507.09%.

The institutional sentiment decreased to 0.17 in Q2 2015. It’s down 0.32, from 0.49 in 2015Q2. The ratio is negative, as 24 funds sold all their FXCM Inc shares they owned while 22 reduced their positions. 1 funds bought stakes while 7 increased their total positions. Institutions now own 10.57 million shares which is 33.92% less than the previous share count of 16.00 million in 2015Q2.

Gagnon Securities Llc holds 0.07% of its total portfolio in FXCM Inc, equating to 168,518 shares. Municipal Employees’ Retirement System Of Michigan owns 9,700 shares representing 0.01% of their total US portfolio. Moreover, Vanguard Group Inc has 0.01% of their total portfolio invested in the company, equating to 5.79 million shares. The New York-based American International Group Inc has a total of 0% of their portfolio invested in the stock. Bank Of America Corp De, a North Carolina-based fund reported 584,978 shares owned.

FXCM Inc. is an online provider of foreign exchange trading and related services. The company has a market cap of $61.98 million. The Firm offers access to over-the-counter (OTC) FX markets through its technology platform. It currently has negative earnings. In its agency model, when the Company’s customer executes a trade on the price quotation offered by its FX market makers, the Company acts as a credit intermediary simultaneously entering into offsetting trades with both the customer and the FX market maker.