National Securities reiterated their neutral rating on shares of Garrison Capital Inc. (NASDAQ:GARS) in a research report sent to investors on Monday morning. National Securities currently has a $10.00 target price 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 commented.
A number of other research analysts have also issued reports on the company. Maxim Group reiterated a buy rating and set a $11.00 target price on shares of Garrison Capital in a research report on Thursday, November 9th. Zacks Investment Research lowered Garrison Capital from a buy rating to a hold rating in a research report on Wednesday, October 25th. Finally, ValuEngine upgraded Garrison Capital from a hold rating to a buy rating in a research report on Monday, October 2nd. One analyst has rated the stock with a sell rating, five have issued a hold rating and two have assigned a buy rating to the company. The company has an average rating of Hold and a consensus target price of $10.13.
Shares of Garrison Capital (NASDAQ GARS) traded down $0.11 during trading hours on Monday, hitting $8.28. The stock had a trading volume of 34,500 shares, compared to its average volume of 51,975. Garrison Capital has a 52-week low of $7.77 and a 52-week high of $10.15. The stock has a market cap of $134.65, a price-to-earnings ratio of 7.49 and a beta of 0.24. The company has a quick ratio of 10.29, a current ratio of 10.29 and a debt-to-equity ratio of 1.07.
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 analysts’ consensus estimates of $0.28 by ($0.02). Garrison Capital had a net margin of 14.66% and a return on equity of 9.33%. The business had revenue of $8.90 million for the quarter. analysts forecast that Garrison Capital will post 1.11 earnings per share for the current year.
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The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 22nd. Shareholders of record on Friday, December 8th will be issued a $0.28 dividend. The ex-dividend date is Thursday, December 7th. This represents a $1.12 dividend on an annualized basis and a yield of 13.53%. Garrison Capital’s payout ratio is currently 329.41%.
A number of hedge funds have recently made changes to their positions in the business. Caxton Corp lifted its holdings in Garrison Capital by 4.0% in the 2nd quarter. Caxton Corp now owns 68,702 shares of the investment management company’s stock valued at $567,000 after purchasing an additional 2,629 shares in the last quarter. OxFORD Asset Management LLP lifted its holdings in Garrison Capital by 56.1% in the 3rd quarter. OxFORD Asset Management LLP now owns 17,586 shares of the investment management company’s stock valued at $148,000 after purchasing an additional 6,321 shares in the last quarter. Stephens Inc. AR lifted its holdings in Garrison Capital by 40.1% in the 2nd quarter. Stephens Inc. AR now owns 30,274 shares of the investment management company’s stock valued at $250,000 after purchasing an additional 8,667 shares in the last quarter. Alpine Woods Capital Investors LLC lifted its holdings in Garrison Capital by 81.8% in the 2nd quarter. Alpine Woods Capital Investors LLC now owns 20,000 shares of the investment management company’s stock valued at $165,000 after purchasing an additional 9,000 shares in the last quarter. Finally, Oppenheimer & Co. Inc. lifted its holdings in Garrison Capital by 35.6% in the 2nd quarter. Oppenheimer & Co. Inc. now owns 53,727 shares of the investment management company’s stock valued at $444,000 after purchasing an additional 14,093 shares in the last quarter. Institutional investors own 20.85% of the company’s stock.
About Garrison Capital
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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