Gain Capital Holdings Inc (NYSE:GCAP) Sees Significant Drop in Short Interest

Gain Capital Holdings Inc (NYSE:GCAP) was the recipient of a large decline in short interest during the month of November. As of November 15th, there was short interest totalling 3,310,000 shares, a decline of 7.8% from the October 31st total of 3,590,000 shares. Based on an average daily volume of 177,600 shares, the days-to-cover ratio is presently 18.6 days. Approximately 21.2% of the shares of the stock are short sold.

NYSE GCAP opened at $4.15 on Monday. The stock has a fifty day moving average of $4.31 and a 200-day moving average of $4.46. The stock has a market capitalization of $154.21 million, a P/E ratio of 6.19 and a beta of 0.57. Gain Capital has a 52 week low of $3.75 and a 52 week high of $7.58. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.29 and a current ratio of 1.29.

Gain Capital (NYSE:GCAP) last released its earnings results on Thursday, October 24th. The financial services provider reported ($0.07) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.03) by ($0.04). The firm had revenue of $66.70 million during the quarter, compared to analyst estimates of $68.11 million. Gain Capital had a negative net margin of 12.32% and a negative return on equity of 11.89%. The firm’s quarterly revenue was down 30.2% on a year-over-year basis. During the same period last year, the business posted $0.31 earnings per share. Equities research analysts forecast that Gain Capital will post -0.71 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 17th. Stockholders of record on Tuesday, December 10th will be paid a $0.06 dividend. The ex-dividend date of this dividend is Monday, December 9th. This represents a $0.24 annualized dividend and a dividend yield of 5.78%. Gain Capital’s dividend payout ratio (DPR) is currently 35.82%.

Several equities analysts have issued reports on the company. B. Riley set a $7.00 price objective on Gain Capital and gave the company a “buy” rating in a research report on Friday, October 11th. Sandler O’Neill set a $5.00 target price on Gain Capital and gave the company a “buy” rating in a research note on Tuesday, September 10th. JPMorgan Chase & Co. raised Gain Capital from a “neutral” rating to an “overweight” rating and lifted their target price for the company from $5.50 to $6.00 in a research note on Thursday, August 15th. Zacks Investment Research cut Gain Capital from a “hold” rating to a “sell” rating in a research note on Friday, October 25th. Finally, ValuEngine raised Gain Capital from a “hold” rating to a “buy” rating in a research note on Thursday, September 5th. One investment analyst has rated the stock with a sell rating and four have issued a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average price target of $5.75.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in GCAP. Vanguard Group Inc. grew its stake in shares of Gain Capital by 18.7% during the second quarter. Vanguard Group Inc. now owns 1,282,761 shares of the financial services provider’s stock worth $5,298,000 after purchasing an additional 201,686 shares during the period. Weber Alan W grew its stake in shares of Gain Capital by 1.2% during the second quarter. Weber Alan W now owns 1,221,190 shares of the financial services provider’s stock worth $5,044,000 after purchasing an additional 14,517 shares during the period. Northern Trust Corp grew its stake in shares of Gain Capital by 0.6% during the second quarter. Northern Trust Corp now owns 968,591 shares of the financial services provider’s stock worth $4,000,000 after purchasing an additional 5,437 shares during the period. Renaissance Technologies LLC grew its stake in shares of Gain Capital by 17.6% during the second quarter. Renaissance Technologies LLC now owns 647,100 shares of the financial services provider’s stock worth $2,673,000 after purchasing an additional 96,900 shares during the period. Finally, Municipal Employees Retirement System of Michigan grew its stake in shares of Gain Capital by 65.2% during the second quarter. Municipal Employees Retirement System of Michigan now owns 125,260 shares of the financial services provider’s stock worth $517,000 after purchasing an additional 49,450 shares during the period. 51.53% of the stock is owned by institutional investors.

Gain Capital Company Profile

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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