After watching its share price collapse following some nasty trading errors, Knight Capital Group Inc. (NYSE: KCG) got a huge bounce this afternoon when TD Ameritrade Holding Corp. (NYSE: AMTD) resumed routing trades through Knight. The vote of confidence was probably as good as an infusion of a several million dollars.
Earlier today The Wall Street Journal reported that the company had received a credit line that would allow it to operate for the day, and that boosted the stock nearly halfway to its 60% gain. But there’s little doubt that without TD Ameritrade’s vote of confidence the share price would have stalled out at a much lower level.
Scottrade has also resumed trading with Knight, although E*Trade Financial Corp. (NASDAQ: ETFC), Vangaurd, and Fidelity have not. Knight said yesterday that it estimated its cost from the errors at $440 million, which we noted this morning is about 4x the company’s annual net income.
Knight’s shares are now trading at $4.13 in a 52-week range of $2.27-$14.00. Shares closed at $2.58 last night.
Paul Ausick
“The Next NVIDIA” Could Change Your Life
NVIDIA has returned 250-fold in the past 10 years as artificial intelligence took off.
But if you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over.
The 24/7 Wall Street Analyst who first called NVIDIA’s AI-fueled rise in 2009 just published a brand-new research report named “The Next NVIDIA.”
The report outlines key breakthroughs in AI and the stocks ready to dominate the next wave of growth. The report is absolutely free. Simply enter your email below
By providing your email address, you agree to receive communications from us regarding website updates and other offerings that may be of interest to you.
You have the option to opt-out of these emails at any moment. For more information, please review our Disclaimer and Terms of Use.