Exclusive FNG… Following a series of investigations into why shares of online broker NAGA Group (ETR:N4G) traded heavily on Tuesday afternoon, FNG has learned that the main driver appears to be a new research report on the company published analysts of the German equity research firm NuWays AG.
Shares in NAGA Group traded sharply early on Tuesday afternoon (May 28), with NAGA shares closing at €1.06, up 38% on the day – the highest closing level since late March.
While the company has not released any news, nor (as far as we know) have rumors circulated about the company, traders’ reaction seems to have been to a research report issued the previous day by NuWays. The report, which you can download from NAGA’s Investor Relations websitein fact it came in with a slightly lower price target (€1.20) than NuWays previously had on the stock (€1.30).
However, NuWays had some positive things to say about the company’s revenue and earnings outlook for 2024 and beyond, also stating that “the growth potential … is enormous.”
We also note that “small-cap” stocks like NAGA, which have much lower trading volume than large-cap stocks, tend to swing with more volatility and are known to move sharply one way or the other based on news , speculations, or new analysis coming to market.
NAGA is in the process of being acquired by rival broker Capex.com and its shareholders through a reverse merger, which is still awaiting regulatory approval. The NAGA-Capex.com merger was approved by NAGA shareholders last month, with controlling shareholder and Capex.com CEO Octavian Patrascu stepping in as NAGA’s CEO.