GAIN Capital shares soar 12% Tuesday after Zacks upgrade

Gain Capital Holdings ( (NYSE:GCAP) was upgraded by Zacks from a rating of “underperform” to a “neutral” in their latest report released on Monday. The firm put a $6.30 target price on the stock. Note that despite the upgrade Zacks still has just a $6.30 price target on the stock, well below its current price about $7 after investors scooped up shares of Gain in droves on Tuesday October 14th carrying the stock up to post a 12.48% gain.

Courtesy: Google Finance

Courtesy: Google Finance

It seems as though the Zacks upgrade has convinced investors that there is little downside in the shares, despite their lack of bullishness on its upside to issue a “buy” rating. Nonetheless, the uptick in FX volatility and consequently record setting volumes for the month of September within the Forex industry might have something to do with the upgrade. Check out the chart below:


1 year chart of GCAP vs. its biggest competitor FXCM, with GCAP shares popping on Tuesday – is Gain due for a rally?


Gain Capital has been making some waves lately… Starting with the most recent volume report for September, where total volume rose 28.8% MoM and the retail segment set an all time record. Secondly, having entered into a deal in order to acquire the client list of Japanese FX brokerage Planex Trade, the first Planex Trade customers are now trading live with GAIN Capital, which will add something to the bottom line.

Moreover, a new partnership saw Spotware Systems partner with GAIN to offer CFDs on cTrader internationally. In final recent Gain Capital news, CEO Glenn Henry Stevens sold 62,600 shares of Gain Capital Holdings stock in a transaction dated Friday, October 3rd. The shares were sold at an average price of $6.43, for a total value of $402,518.00. Maybe Stevens should have held out a bit longer as Gain Capital is looking to put some lasting momentum behind their recent moves likely to make company shares benefit. Make sure to stay tuned to LeapRate for all happenings within the FX sector for the final quarter of 2014.

Read Also: