Great Elm Capital (GECC) Cut to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Great Elm Capital (NASDAQ:GECC) from a strong-buy rating to a hold rating in a research note released on Tuesday morning.

According to Zacks, “Great Elm Capital Corp. is a diversified investment company. Its business line consists of investment management, financial products and merchant banking. Great Elm Capital Corp. is based in Baltimore, Maryland. “

Shares of NASDAQ GECC traded up $0.01 during mid-day trading on Tuesday, reaching $9.60. 4,355 shares of the company traded hands, compared to its average volume of 16,760. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.09 and a current ratio of 0.09. The firm has a market cap of $101.94 million, a price-to-earnings ratio of 6.32 and a beta of 0.64. Great Elm Capital has a fifty-two week low of $8.76 and a fifty-two week high of $10.44.

Great Elm Capital (NASDAQ:GECC) last issued its quarterly earnings data on Friday, August 10th. The financial services provider reported $0.57 EPS for the quarter, beating the Zacks’ consensus estimate of $0.30 by $0.27. The business had revenue of $7.16 million for the quarter, compared to analyst estimates of $6.99 million. Great Elm Capital had a positive return on equity of 15.45% and a negative net margin of 16.40%. As a group, equities research analysts forecast that Great Elm Capital will post 1.48 earnings per share for the current year.

The business also recently disclosed a monthly dividend, which will be paid on Friday, December 14th. Stockholders of record on Friday, November 30th will be issued a dividend of $0.083 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 10.38%. The ex-dividend date is Thursday, November 29th. Great Elm Capital’s dividend payout ratio is 65.79%.

In other news, major shareholder Mast Capital Management, Llc sold 45,448 shares of the stock in a transaction dated Wednesday, September 12th. The stock was sold at an average price of $9.68, for a total transaction of $439,936.64. The sale was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 0.27% of the company’s stock.

A hedge fund recently raised its stake in Great Elm Capital stock. Quantum Capital Management increased its stake in shares of Great Elm Capital Corp (NASDAQ:GECC) by 6.4% during the second quarter, according to the company in its most recent filing with the SEC. The fund owned 135,988 shares of the financial services provider’s stock after acquiring an additional 8,197 shares during the period. Quantum Capital Management owned 1.28% of Great Elm Capital worth $1,257,000 as of its most recent filing with the SEC. Institutional investors and hedge funds own 6.71% of the company’s stock.

About Great Elm Capital

Great Elm Capital Corporation is a business development company which specializes in loan and mezzanine, middle market investments. The fund prefers to invest in media, commercial services and supplies, healthcare, telecommunication services, communications equipment. It typically makes equity investments between $3 million and $10 million in companies with revenues between $3 million and $75 million.

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