Zacks Investment Research Lowers Gain Capital (NYSE:GCAP) to Strong Sell

Zacks Investment Research lowered shares of Gain Capital (NYSE:GCAP) from a hold rating to a strong sell rating in a research note released 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. “

GCAP has been the subject of several other research reports. TheStreet cut Worthington Industries from a b- rating to a c+ rating in a report on Monday, June 10th. ValuEngine upgraded ZTE CORP/ADR from a hold rating to a buy rating in a report on Monday, April 15th.

GCAP opened at $4.05 on Thursday. The stock’s 50 day moving average is $4.01. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.29 and a current ratio of 1.29. Gain Capital has a 1 year low of $3.75 and a 1 year high of $7.90.

Gain Capital (NYSE:GCAP) last posted its quarterly earnings results on Thursday, April 25th. The financial services provider reported ($0.76) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.72) by ($0.04). Gain Capital had a negative return on equity of 4.73% and a net margin of 16.24%. The company had revenue of $38.40 million for the quarter, compared to the consensus estimate of $39.26 million. During the same quarter in the previous year, the business earned $0.36 earnings per share. Gain Capital’s revenue was down 61.0% compared to the same quarter last year. Research analysts forecast that Gain Capital will post -0.68 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 28th. Shareholders of record on Monday, June 24th were issued a $0.06 dividend. This represents a $0.24 annualized dividend and a yield of 5.93%. The ex-dividend date of this dividend was Friday, June 21st. Gain Capital’s dividend payout ratio (DPR) is currently 35.82%.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Rhumbline Advisers lifted its holdings in Gain Capital by 39.3% in the 4th quarter. Rhumbline Advisers now owns 38,821 shares of the financial services provider’s stock worth $239,000 after buying an additional 10,950 shares during the period. BlackRock Inc. increased its holdings in shares of Gain Capital by 2.8% in the 4th quarter. BlackRock Inc. now owns 1,797,696 shares of the financial services provider’s stock worth $11,074,000 after purchasing an additional 49,581 shares in the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Gain Capital by 11.7% in the fourth quarter. Bank of New York Mellon Corp now owns 233,092 shares of the financial services provider’s stock worth $1,436,000 after acquiring an additional 24,453 shares during the period. Geode Capital Management LLC grew its holdings in shares of Gain Capital by 18.1% in the fourth quarter. Geode Capital Management LLC now owns 280,453 shares of the financial services provider’s stock worth $1,727,000 after acquiring an additional 42,995 shares during the period. Finally, Mackay Shields LLC bought a new stake in shares of Gain Capital in the fourth quarter worth $225,000. Institutional investors and hedge funds own 54.90% of the company’s stock.

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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