FNG Exclusive… Following up on a number of enquiries we have had regarding the reason that shares of online broker NAGA Group (ETR:N4G) traded up sharply on Tuesday afternoon, FNG has learned that the main motivator seems to be a new research report on the company put out by analysts at German equity research firm NuWays AG.

NAGA Group shares traded up sharply, starting early Tuesday (May 28) afternoon, with NAGA shares closing at €1.06, up 38% on the day – their highest closing level since late March.

While the company did not put any any news, nor (to the best of our knowledge) were there any rumors circulating about the company, the reaction of traders seems to have been to a research report issued the previous day by NuWays. The report, which can be downloaded from NAGA’s investor relations website, actually came with a slightly lower price target (€1.20) than NuWays had previously on the stock (€1.30).

However NuWays had some positive things to say about the company’s Revenue and Profit outlook for 2024 and beyond, as well as stating that “the growth potential… is huge.”

We’d also note that “small cap” stocks like NAGA, which have much lower trading volumes than large-cap stocks, tend to fluctuate with more volatility, and are known to move sharply one way or the other based on news, speculation, or new analysis that hits the market.

NAGA is in process of being taken over by rival broker Capex.com and its shareholders via a reverse merger, which is still awaiting regulator approval. The NAGA-Capex.com merger was approved by NAGA shareholders last month, with Capex.com controlling shareholder and CEO Octavian Patrascu being installed as CEO of NAGA.