Gain Capital (NYSE:GCAP) Cut to “Strong Sell” at Zacks Investment Research

Gain Capital (NYSE:GCAP) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Thursday, Zacks.com reports.

According to Zacks, “institutional foreign exchange, trading and related services providing direct access to the global OTC foreign exchange markets, where participants trade directly with one another. Its trading platforms provide information and analytical tools that allow customers to identify, analyze and execute their trading strategies. GAIN also offers retail customers located outside the United States access to other global markets on an OTC basis, including the spot gold and silver markets, as well as equity indices and commodities. Its forex trading activities are regulated in the US by the Commodity Futures Trading Commission and the National Futures Association, in the UK by the Financial Services Authority, in Japan by the Financial Services Agency, in Hong Kong by the Securities and Futures Commission and in Australia by the Australian Securities and Investments Commission. GAIN Capital Holdings, Inc is based in Bedminster, New Jersey. “

A number of other brokerages have also weighed in on GCAP. ValuEngine raised shares of ZTE CORP/ADR from a “hold” rating to a “buy” rating in a report on Monday, April 15th. TheStreet lowered shares of Worthington Industries from a “b-” rating to a “c+” rating in a report on Monday, June 10th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and one has issued a buy rating to the stock. The company has a consensus rating of “Hold” and an average price target of $8.75.



NYSE:GCAP traded down $0.03 during trading hours on Thursday, reaching $3.91. The company’s stock had a trading volume of 157,100 shares, compared to its average volume of 196,136. The stock has a market cap of $154.95 million, a P/E ratio of 5.84 and a beta of 0.72. Gain Capital has a 12 month low of $3.75 and a 12 month high of $7.92. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.50. The firm has a 50 day simple moving average of $4.02.

Gain Capital (NYSE:GCAP) last issued its quarterly earnings data on Thursday, April 25th. The financial services provider reported ($0.76) EPS for the quarter, missing analysts’ consensus estimates of ($0.72) by ($0.04). The business had revenue of $38.40 million during the quarter, compared to the consensus estimate of $39.26 million. Gain Capital had a negative return on equity of 4.73% and a net margin of 16.24%. The business’s quarterly revenue was down 61.0% on a year-over-year basis. During the same period last year, the firm earned $0.36 EPS. On average, analysts expect that Gain Capital will post -0.72 EPS for the current fiscal year.

Institutional investors and hedge funds have recently made changes to their positions in the company. BNP Paribas Arbitrage SA grew its holdings in shares of Gain Capital by 306.7% during the first quarter. BNP Paribas Arbitrage SA now owns 5,670 shares of the financial services provider’s stock valued at $36,000 after buying an additional 4,276 shares during the last quarter. Paloma Partners Management Co acquired a new position in Gain Capital during the fourth quarter valued at $150,000. Bank of America Corp DE lifted its position in Gain Capital by 19.4% during the fourth quarter. Bank of America Corp DE now owns 31,690 shares of the financial services provider’s stock valued at $195,000 after purchasing an additional 5,139 shares during the period. Mackay Shields LLC acquired a new position in Gain Capital during the fourth quarter valued at $225,000. Finally, Rhumbline Advisers lifted its position in Gain Capital by 39.3% during the fourth quarter. Rhumbline Advisers now owns 38,821 shares of the financial services provider’s stock valued at $239,000 after purchasing an additional 10,950 shares during the period. 54.90% of the stock is currently owned by hedge funds and other institutional investors.

About Gain Capital

GAIN Capital Holdings, Inc, together with its subsidiary, provides trading services and solutions to retail, institutional, and futures service customers worldwide. The company operates in two segments, Retail and Futures. It specializes in over-the-counter (OTC) and exchange-traded markets. The company offers access to a range of financial products, including spot foreign exchange (forex) and precious metals trading; and spread bets and contracts for differences on currencies, commodities, indices, individual equities, bonds, options, and interest rate products, as well as OTC options on forex.

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