Nomura (NYSE:NMR) Trading Down 6.1% - Here's Why

Key Points

• Nomura shares fell about 6.1% to $7.765 on Friday, with volume of ~374,557 shares — roughly an 80% decline from the average daily volume.
• Q4 results showed an EPS miss ($0.18 vs. $0.24 expected) while revenue beat ($3.52B vs. $3.25B), and sell-side analysts forecast about $0.83 in EPS for the current year.
• Analyst sentiment is mixed-to-positive (JPMorgan upgraded to Overweight and MarketBeat's consensus is "Buy"); the stock trades at a P/E of 9.91 with a market cap near $23B and a high debt-to-equity ratio (7.54).

Nomura Holdings Inc ADR (NYSE:NMR - Get Free Report)'s share price dropped 6.1% during trading on Friday . The stock traded as low as $7.78 and last traded at $7.7650. Approximately 374,557 shares were traded during trading, a decline of 80% from the average daily volume of 1,867,325 shares. The stock had previously closed at $8.27.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on NMR. Weiss Ratings restated a "hold (c+)" rating on shares of Nomura in a report on Friday, April 10th. JPMorgan Chase & Co. raised Nomura from a "neutral" rating to an "overweight" rating in a report on Thursday, March 19th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy".

Nomura Trading Down 5.3%

The stock has a 50-day moving average of $8.31 and a 200 day moving average of $8.10. The stock has a market cap of $22.99 billion, a PE ratio of 9.91, a price-to-earnings-growth ratio of 2.14 and a beta of 0.75. The company has a quick ratio of 1.13, a current ratio of 1.12 and a debt-to-equity ratio of 7.54.

Nomura (NYSE:NMR - Get Free Report) last announced its quarterly earnings results on Friday, January 30th. The financial services provider reported $0.18 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.24 by ($0.06). Nomura had a net margin of 7.81% and a return on equity of 9.88%. The company had revenue of $3.52 billion during the quarter, compared to analyst estimates of $3.25 billion. As a group, sell-side analysts anticipate that Nomura Holdings Inc ADR will post 0.83 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Franklin Resources Inc. increased its position in shares of Nomura by 2.8% during the fourth quarter. Franklin Resources Inc. now owns 42,647 shares of the financial services provider's stock worth $358,000 after purchasing an additional 1,148 shares in the last quarter. Parallel Advisors LLC increased its position in shares of Nomura by 5.6% during the fourth quarter. Parallel Advisors LLC now owns 22,208 shares of the financial services provider's stock worth $186,000 after purchasing an additional 1,176 shares in the last quarter. Valeo Financial Advisors LLC increased its position in shares of Nomura by 6.1% during the fourth quarter. Valeo Financial Advisors LLC now owns 21,392 shares of the financial services provider's stock worth $179,000 after purchasing an additional 1,231 shares in the last quarter. Mayflower Financial Advisors LLC increased its position in shares of Nomura by 10.9% during the first quarter. Mayflower Financial Advisors LLC now owns 13,834 shares of the financial services provider's stock worth $109,000 after purchasing an additional 1,361 shares in the last quarter. Finally, Allworth Financial LP increased its position in shares of Nomura by 90.7% during the fourth quarter. Allworth Financial LP now owns 3,042 shares of the financial services provider's stock worth $26,000 after purchasing an additional 1,447 shares in the last quarter. 15.14% of the stock is owned by institutional investors and hedge funds.

About Nomura

Nomura Holdings, Inc is a global financial services group headquartered in Tokyo, Japan, with origins dating back to 1925 when Tokushichi Nomura II established the firm as a securities business. Over the decades Nomura has grown from a domestic securities house into a multinational financial services firm by expanding its product offerings and international footprint. The company is publicly listed and operates through a network of subsidiaries and branches to serve a broad client base.

Nomura's principal businesses encompass retail brokerage, wholesale (investment banking and global markets), and asset management.

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