Gain Capital (NYSE: GCAP) and the Forex.com brand has not been immune to the volume slowdown across much of the industry this year. However, the stock is still in favor on Wall Street, as analysts understand when volume in the FX industry ticks back up, earnings should steadily follow suit…thus, now is the time for brokers to get their houses in order.
NASDAQ is reporting GAIN Capital will begin trading ex-dividend on June 10, 2014. The cash dividend payment of $0.05 per share is scheduled to be paid on June 20, 2014. Shareholders who purchased GCAP stock prior to the ex-dividend date are eligible for the cash dividend payment.
We reported back in May, Gain Capital shares were down more than 15% after reporting Q1 results. This 15% drop might have amounted to a nice sale in the share price as divided hunters looked to go bottom fishing. This morning to begin trading, (GCAP) Gain Capital shares are up a nickel to $7.68, with many forecasts calling for a run back around the $10 handle.
Analysts at Jefferies Group reiterated a buy rating on shares of Gain Capital Holdings in a research note on Monday, May 12th. They now have a $9.50 price target on the stock, down previously from $11.50. Separately, analysts at Keefe, Bruyette & Woods initiated coverage on shares of Gain Capital Holdings in a research note on Friday, May 2nd. They set an outperform rating and a $12.00 price target on the stock.
Although many firms have now adjusted their price targets to take into account current events within the industry, there still could be a good play to be made on depressed FX volumes rebounding across the industry from the lowest point we are currently experiencing in the last 7 years. For now, investors can enjoy a nice yielding dividend from one of the best of breed companies within the FX sector.