Zacks Investment Research lowered shares of THL Credit (NASDAQ:TCRD) from a hold rating to a sell rating in a research note released on Thursday morning.
According to Zacks, “THL Credit Inc. is a newly-organized, externally-managed, non-diversified closed-end management investment company that has filed an election to be treated as a business development company. The Company’s investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of middle market companies. The Company invests primarily in private subordinated debt, or mezzanine debt, in middle market companies that require capital for growth and acquisitions. Such investments in many cases include an associated equity component such as warrants, preferred stock or other similar securities. The Company’s investment activities are managed by its investment adviser, THL Credit Advisors LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended. “
Several other equities research analysts also recently weighed in on the company. ValuEngine downgraded THL Credit from a hold rating to a sell rating in a report on Saturday, December 15th. National Securities cut their price objective on THL Credit from $10.00 to $9.00 and set a neutral rating on the stock in a report on Wednesday, November 14th. Raymond James reissued an underperform rating on shares of THL Credit in a report on Friday, November 9th. Finally, BidaskClub downgraded THL Credit from a hold rating to a sell rating in a report on Monday, October 8th. Four equities research analysts have rated the stock with a sell rating and four have assigned a hold rating to the company. The company presently has an average rating of Hold and a consensus target price of $9.19.
Shares of TCRD opened at $6.54 on Thursday. THL Credit has a 52-week low of $5.80 and a 52-week high of $9.21. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.22 and a current ratio of 0.22. The firm has a market capitalization of $215.32 million, a PE ratio of 5.40 and a beta of 1.06.
THL Credit (NASDAQ:TCRD) last issued its quarterly earnings results on Wednesday, November 7th. The investment management company reported $0.26 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.28 by ($0.02). THL Credit had a negative net margin of 8.62% and a positive return on equity of 10.73%. The business had revenue of $16.08 million during the quarter, compared to the consensus estimate of $16.63 million. Equities research analysts expect that THL Credit will post 1.11 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Monday, December 31st. Investors of record on Friday, December 14th were issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 16.51%. The ex-dividend date of this dividend was Thursday, December 13th. THL Credit’s dividend payout ratio (DPR) is 89.26%.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Citadel Advisors LLC acquired a new stake in shares of THL Credit during the 2nd quarter valued at $108,000. Trexquant Investment LP acquired a new position in THL Credit during the 3rd quarter worth about $123,000. Jane Street Group LLC acquired a new position in THL Credit during the 2nd quarter worth about $163,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in THL Credit during the 3rd quarter worth about $238,000. Finally, Globeflex Capital L P lifted its holdings in THL Credit by 52.3% during the 3rd quarter. Globeflex Capital L P now owns 87,342 shares of the investment management company’s stock worth $705,000 after buying an additional 30,000 shares during the period. 41.03% of the stock is currently owned by institutional investors.
THL Credit Company Profile
THL Credit, Inc is a business development company specializing in direct and fund of fund investments. The fund seeks to invest in debt and equity securities of middle market companies. It seeks to invest in PIPES, growth, acquisition, market or product expansion, recapitalization, mature, and change of control transactions in both sponsored and unsponsored issuers.
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