National Securities restated their neutral rating on shares of Garrison Capital Inc. (NASDAQ:GARS) in a research report released on Monday morning. National Securities currently has a $10.00 price objective on the investment management company’s stock.
“• NAV/share was down a penny Q/Q to $11.74 with non-accruals at cost remaining roughly flat on the quarter at $36.1 million or 9.4% of the portfolio, from $36.2 million or 9.4% of the portfolio the quarter prior. Management commented on the earnings call that they anticipate the resolution of most of the problem assets in the next couple of quarters and are confident in the marks, indicating potential upside upon restructuring and/or sale.
• Earnings were light again as the portfolio remained flat on the quarter and company continues to shift the portfolio into more UMM club and lightly syndicated deals and away from direct LMM originations. As a result, all-in effective yield decreased again and we expect this trend to continue. While we also model less of a drag on overall portfolio yields from non-accruals going forward, we expect the lower yields on the UMM deals will eclipse this and cause overall yields to fall.
• We expect GARS to resume earning its incentive fee in 3Q18 and concomitantly we model a dividend reduction to $0.20/share from $0.28/share currently.
• We are revising our 2017 adjusted NII/share estimate to $1.06 from $1.11 and our 2018 adjusted NII/share estimate to $0.98 from $1.01. ,” National Securities’ analyst wrote.
Several other equities analysts have also weighed in on the stock. Zacks Investment Research upgraded shares of Garrison Capital from a strong sell rating to a hold rating in a research report on Wednesday, July 19th. ValuEngine lowered shares of Garrison Capital from a buy rating to a hold rating in a research report on Friday, September 1st. Finally, Maxim Group restated a buy rating and set a $11.00 price objective on shares of Garrison Capital in a research report on Thursday, November 9th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and two have issued a buy rating to the company. Garrison Capital presently has an average rating of Hold and an average price target of $10.13.
Garrison Capital (NASDAQ GARS) traded up $0.19 during mid-day trading on Monday, hitting $8.28. 44,900 shares of the company were exchanged, compared to its average volume of 51,869. The company has a debt-to-equity ratio of 1.07, a quick ratio of 10.29 and a current ratio of 10.29. Garrison Capital has a 1-year low of $7.77 and a 1-year high of $10.15. The firm has a market cap of $132.89, a PE ratio of 7.22 and a beta of 0.24.
Garrison Capital (NASDAQ:GARS) last announced its earnings results on Tuesday, November 7th. The investment management company reported $0.26 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.28 by ($0.02). The company had revenue of $8.90 million during the quarter. Garrison Capital had a net margin of 14.66% and a return on equity of 9.33%. analysts expect that Garrison Capital will post 1.08 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Friday, December 22nd. Stockholders of record on Friday, December 8th will be given a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a dividend yield of 13.53%. The ex-dividend date is Thursday, December 7th. Garrison Capital’s dividend payout ratio (DPR) is 339.39%.
Several hedge funds and other institutional investors have recently bought and sold shares of the company. Alpine Woods Capital Investors LLC raised its position in Garrison Capital by 81.8% during the second quarter. Alpine Woods Capital Investors LLC now owns 20,000 shares of the investment management company’s stock valued at $165,000 after acquiring an additional 9,000 shares in the last quarter. Oppenheimer & Co. Inc. raised its position in Garrison Capital by 35.6% during the second quarter. Oppenheimer & Co. Inc. now owns 53,727 shares of the investment management company’s stock valued at $444,000 after acquiring an additional 14,093 shares in the last quarter. AJO LP bought a new position in Garrison Capital during the second quarter valued at approximately $816,000. Stephens Inc. AR raised its position in Garrison Capital by 40.1% during the second quarter. Stephens Inc. AR now owns 30,274 shares of the investment management company’s stock valued at $250,000 after acquiring an additional 8,667 shares in the last quarter. Finally, Caxton Corp raised its position in Garrison Capital by 4.0% during the second quarter. Caxton Corp now owns 68,702 shares of the investment management company’s stock valued at $567,000 after acquiring an additional 2,629 shares in the last quarter. 20.85% of the stock is owned by institutional investors and hedge funds.
Garrison Capital Company Profile
Garrison Capital Inc is a managed, closed-end, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation by making investments primarily in debt securities and loans of the United States-based middle-market companies, which it defines as those having annual earnings before interest, taxes and depreciation, or EBITDA, of certain amount.
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