Nomura Trading Up After Inaccurate Story; Stock Was Upgraded 2 Weeks Ago

Shares of Nomura Holdings, Inc. (NYSE: NMR) surged more than 5 percent on Monday and established a new 52-week high of $7.23.

At a time when financial-related stocks are trading lower as a result of Greece's referendum result, the move higher in Nomura's stock warranted a second look.

One possible explanation for the move higher was a report by Insider Trading Report which stated that shares of the Japan-based global investment and financial services business received an upgrade to Equal-weight from Underperform by analysts at Barclays.

The report appears incorrect. Shares of Nomura were actually upgraded on June 23 by Barclay's Japan-based analyst Azuma Ohno.

The Insider Trading Report story has since been removed.

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"Core business earnings have been stable, mainly led by the retail business, and we expect expansion of investment-trust fees and wrap-account income to strengthen consolidated profit absent a sudden change in the market environment," Ohno wrote. "The wrap-account balance is growing at a faster pace than at Daiwa [Japan's second largest securities brokerage after Nomura], and we anticipate a large contribution by wrap-related income to profit growth in the retail business."

Ohno also noted that within Nomura's wholesale division, overseas income has improved to breakeven level and is expected to deliver a profit from overseas business in the third quarter 2016, including "anticipated income from a major IPO."

Ohno also stated that Nomura's investors could expect dividend increases that correspond to the company's growing profit trend. In addition, the company could institute a buyback program if profit "overshoots."