Gain Capital CEO, Glenn Stevens Sells 11% of His GCAP Shares, Nets Nearly $1M in Proceeds

Glenn Stevens, CEO, Gain Capital

According to regulatory filings dated April 2, 2014, filed by Gain Capital Holding Inc. under form 4 with the SEC, the firm’s CEO, Glen Stevens has cashed in on 11.2% or 84,600 shares of his holdings of the company’s publicly traded stock under on the New York Stock Exchange.

Mr. Steven still owns 676,482 shares of the company according to the filing, where he is listed as President, CEO & Director, and the above reported unloading of 84,600 shares was reported as having been made as early as March 31, 2014, the last day before the close of the first quarter. The transactions took place between the prices of $10.9295 and $11.1347, according to the filings.

Based on yesterday’s closing price of GCAP at roughly $11.02, the remaining shares that Mr. Stevens still beneficially owns can be estimated to be worth $7,388,711, after he cashed in just shy of one million dollars worth of stock or $937,481, based on the volume weighted average prices listed above from the filings.

Based on an excerpt of the company’s financial tearsheet that was updated as of yesterday, there are 39,763,000 shares outstanding which at yesterday’s closing price of $11.02 value the company’s market capitilization at $438,188,260. Mr. Stevens’ current stake now represents 1.70% of the company’s total and has reduced from 1.89% of the company’s total prior to the sale (using today’s estimates).

The sales were done pursuant to a company sales plan that permits such trades and complies with the requirements of Rule 10b5-1(c) under the Securities Exchange Act of 1934.

Therefore, while it’s not clear as to the , it appears that it could be profit taking or the proceeds were needed for a personal investment or related matters.

After all the benefits of owning shares in your own public company (or someone else’s company) is benefiting from an increase in their value over time, whereas when executives start selling large percentages it can also be revealing of changes that are to come. Just yesterday, Forex Magnates in .

Forex Magnates reported when earlier last month, as well as the firm’s a few weeks before.

An excerpt of the Yahoo Finance chart below shows the price history of GCAP shares, which have reversed the downtrend at the end of 2013, with 2014 proving to be a bullish start.

Line chart of GCAP shares over past two years [source: Yahoo Finance]

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