Tough week for Gain Capital (NYSE:GCAP). After GCAP reported Q2 results which were below expectations, including a $5.2 million loss on revenues which were down 14% from Q1 ($69.7 million versus $81.4 million), Gain shares promptly dropped 5%, closing (Tuesday) at a new 52 week low. of $6.31.
The damage continued Wednesday, with various Wall Street firms including Raymond James, Keefe Bruyette & Woods, and Jefferies Group each lowering their price targets on Gain to the $7.50-$8.00 range. Zacks cut Gain from neutral to an underperform rating.
Although the ‘targets’ generally remain well above Gain’s current share price, the downgrades sent Gain shares lower again on Wednesday – GCAP closed at $6.01, once again its lowest close in over a year and about 33% below its December 2010 IPO price of $9.
Interestingly, the malaise does not seem to have affected FXCM (NYSE:FXCM), which saw its shares rise 2% on Wednesday.
