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Investment Technology Group Upgraded to Strong Buy - Analyst Blog

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On Mar 17, Zacks Investment Research upgraded Investment Technology Group Inc.ITG one notch higher to a Zacks Rank #1 (Strong Buy) from a Zacks Rank #2 (Buy).

Why the Upgrade?

Investment Technology Group witnessed an appreciation in earnings estimates triggered by the company's latest guidance of enhanced repurchase activities in fiscal 2015. Recently, this investment broker unveiled plans to significantly increase the level of buybacks, along with the formation of a committee to review the company's overall capital allocation framework.

Notably, Investment Technology Group's share repurchase levels will now be pegged against a more justified free cash flow metric, substituting the former net income metric, which does not discount non-cash charges.

Also, the investment broker seeks to allocate an amount of $15 million above its free cash flow, for repurchasing shares in fiscal 2015. Reportedly, the company's free cash flow for fiscal 2014 came in at $75.5 million, while it made aggregate repurchases of $48.2 million.

Investment Technology Group has delivered positive earnings surprises in three of the prior four quarters, registering an average earnings beat of 8.43%. Moreover, the stock exhibited a solid one-year return of 55.3%.

Upward estimate revisions reflect further optimism regarding the stock's prospects. The Zacks Consensus Estimate for fiscal 2015 grew 2% to $1.51 per share in the last 7 days, while the same for fiscal 2016 inched up 1.6% to $1.96 a share.

Other Stocks Worth a Look

Investors interested in the finance space could also consider players like JMP Group LLC JMP , Cowen Group, Inc. COWN and Woori Bank Co., Ltd. WF . All these stocks sport the same Zacks Rank as Investment Technology Group.

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INVEST TECH-NEW (ITG): Free Stock Analysis Report

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COWEN GROUP INC (COWN): Free Stock Analysis Report

JMP GROUP INC (JMP): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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