Investors Alert – GAIN Capital Holdings, Inc. (NYSE:GCAP) Grabbing Attentions on Earnings Factor

GAIN Capital Holdings, Inc. (NYSE: GCAP) notched a move of 0.13% to $7.43 for the Thursday. The total traded volume was 670532. The stock had closed at $7.42 on the previous day. The stock has recorded a 200-day Moving Average of 7.78% and the 50-Day Moving Average is -4.32%. Shares have moved -43.97% from its 1 Year high price and changed 33.63% from its 1 Year low price. The shares registered one year high at $13.26 and the one year low was seen at $5.56.

GAIN Capital Holdings, Inc. (NYSE:GCAP) reported financial results for the fourth quarter and full year 2017.

Key Financial Results

Net revenue of $308.6 million for the year and $69.7 million for the fourth quarter 2017

GAAP net loss of $11.2 million, or $0.20 per share, for the full year; GAAP net loss of $3.7 million, or $0.08 per share, for the fourth quarter

Adjusted net loss of $9.4 million, or $0.20 per share, for the full year; adjusted net loss of $4.5 million, or $0.10 per share, for the fourth quarter

The U.S. Tax Cuts and Jobs Act decreased adjusted net income by $3.1 million, or $0.10 per share, for the full year, and $5.7 million, or $0.13 per share, for the fourth quarter

Adjusted EBITDA of $35.1 million for the year and $7.3 million for the fourth quarter

Operating Highlights

Year-end total retail client assets of $749.6 million, up 25% year-over-year

Full year new funded direct accounts increased 12% year-over-year

ECN average daily volume increased 37% and 22% year-over-year for the full year and fourth quarter, respectively

Achieved $18.6 million in cost savings against $15 million target

“Our financial performance in 2017 reflects the considerable headwinds caused by the lowest market volatility levels over the past decade,” commented Glenn Stevens, CEO of GAIN. “Despite the macro pressure on our business, we saw areas of growth, particularly in retail client assets and our ECN platform, which has been taking market share and increasing trading volume. In the first two months of 2018, with a resurgence of market volatility, we are seeing positive returns on our efforts to grow client assets and direct accounts in the form of significant increases in client trading volumes and strong revenues in the first part of the year.”

Capital Return and Dividend

In the fourth quarter, GAIN focused on returning capital to shareholders through dividends, which amounted to approximately $2.7 million.

For the full year 2017, excluding the buyback in conjunction with the Convertible Senior Notes offering, GAIN repurchased 1,653,297 shares of stock at an average price of $6.80.

Including the buyback in conjunction with the Convertible Senior Notes offering, during the full year GAIN repurchased 3,776,283 shares of stock at an average price of $6.82.

For the twelve months ended 2017, GAIN returned a total of $37.0 million to shareholders in the form of share repurchases and dividends.

GAIN’s Board of Directors declared a quarterly cash dividend of $0.06 per share of the Company’s common stock. The dividend is payable on March 30, 2018 to shareholders of record as of the close of business on March 27, 2018.

Profitability Indicators – In terms of profitability, GAIN Capital Holdings, Inc. has a gross margin of 74.30%, an operating margin of 7.70% and a net profit margin of 4.10%. Return on assets come to 1.00% and return on investment coming to 11.40% while Return on equity come to 5.10%. GAIN Capital Holdings, Inc. is with Insider ownership of 3.70% and institutional ownership counts to 78.10%. Shares float is 33.98M and outstanding shares are at 43.47M. The float short is currently 19.56% and short ratio is 3.29.

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