Knight Capital Group Inc (NYSE:KCG), based in Jersey City, New Jersey, was prosecuted by an investor who contends the security is undervalued in a $3.75 per share acquisition by Chicago-based trader Getco LLC.
Shareholder Ann Jimenez McMillan reported in a Delaware Chancery Court complaint made public on Monday that Directors of Knight, the trading company that closely avoided bankruptcy current year after computer errors, are duty-bound to look for the best price for corporation shares and “locked-up” the Getco agreement in breach of those duties.
The plaintiff’s lawyers reported in court papers that the price is unfair and grossly inadequate, and will reject investors their right to share proportionately and equitably in the true value of the corporation’s valuable and profitable unit, and future expansion.
Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. GFI Group Inc. (NYSE:GFIG) surged +3.85% to settle at $3.24, FXCM Inc (NYSE:FXCM) moved up +3.81% to end at $10.07 while Gain Capital Holdings Inc (NYSE:GCAP) jumped +2.25% to finish at $4.09 on Monday.
Knight Capital Group Inc. (NYSE:KCG) last session’s volume of 2.28million shares was lower than its average volume of 6.40million shares. The stock after opening at $3.49hit high price of $3.51and then closed at $3.51by scoring +0.57%.
KCG generated revenue of $789.77million in the previous twelve months and earned -$687.68million. The Company showed a negative -39.66% in the net profit margin as well as in its operating margin which remained at -60.82%. Company’s annual sales growth for the past five years was 8.38%.
The KCG’s past twelve months’ price to sales ratio was 0.77and price to cash ratio remained 1.09. As far as the returns are concerned, KCG’s return on equity was recorded as -51.65% and return on investment decreased -12.51% while its return on asset stayed at -4.00%.
The stock showed weekly downbeat performance of -0.57% which was maintained for the month at 4.46%. Likewise the positive performance for the quarter was recorded as 31.46% and for the year was -70.10% while the YTD performance remained at -70.30%.
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