National Securities reissued their buy rating on shares of THL Credit, Inc. (NASDAQ:TCRD) in a report released on Monday morning. They currently have a $12.00 target price on the investment management company’s stock.
“• TCRD reported NII/share of $0.31 versus our estimate of $0.28/share with the beat largely driven by the incentive fee coming in at $1.2 million compared to our estimate of $2.3 million. The incentive fee, subject to a total return hurdle, was not earned in full during the quarter as NAV/share declined Q/Q to $11.48 from $11.71.
• Non-accruals at amortized cost increased during the quarter to $46.3 million or 6.8% of the portfolio from $13.3 million or 1.9% the quarter prior. Washington Inventory Services was sold during the quarter and thus removed from non-accrual but CRS Reprocessing and Specialty Brands Holdings were added with a combined cost of $36.6 million.
• THL’s portfolio at fair value was comprised of 74.0% first lien loans and the Logan JV (joint venture) combined, up from 66.6% the quarter prior. We expect that this composition will continue to trend upwards as a percentage of total fair value and lead to fewer credit issues and thus more NAV stability going forward. While the first lien debt increasing will likely weigh on effective yields somewhat, the company can continue allocating capital to Logan (88% first lien as of 6/30/17) which had a 12.7% yield by cost as of 2Q17. Additionally, our expectation for fewer credit issues in 2018 also means less of a drag on overall portfolio yield.
• We are maintaining our 2017 NII/share estimate of $1.15 and are revising our 2018 NII/share estimate to $1.16 from $1.18.,” the firm’s analyst commented.
Other equities analysts have also issued reports about the company. TheStreet raised THL Credit from a c+ rating to a b- rating in a report on Monday, July 31st. Deutsche Bank AG cut their price target on THL Credit from $10.75 to $10.50 and set a buy rating for the company in a report on Monday, May 8th. Maxim Group reaffirmed a buy rating and issued a $12.00 price target on shares of THL Credit in a report on Friday, May 5th. Keefe, Bruyette & Woods reaffirmed a hold rating and issued a $10.50 price target on shares of THL Credit in a report on Tuesday, April 11th. Finally, Jefferies Group LLC reaffirmed a hold rating and issued a $10.00 price target on shares of THL Credit in a report on Friday, July 14th. Six equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. The company has an average rating of Hold and an average target price of $10.92.
Shares of THL Credit (NASDAQ:TCRD) traded down 2.3313% during trading on Monday, reaching $9.6399. The company’s stock had a trading volume of 201,961 shares. The stock has a 50-day moving average of $9.95 and a 200-day moving average of $10.03. THL Credit has a 52-week low of $8.75 and a 52-week high of $11.70.
THL Credit (NASDAQ:TCRD) last posted its quarterly earnings results on Thursday, August 3rd. The investment management company reported $0.31 EPS for the quarter, topping the Zacks’ consensus estimate of $0.27 by $0.04. THL Credit had a return on equity of 10.22% and a net margin of 29.81%. The firm had revenue of $20.28 million during the quarter, compared to analyst estimates of $20.35 million. During the same period last year, the company earned $0.35 earnings per share. The business’s revenue for the quarter was down 1.0% on a year-over-year basis. Equities analysts anticipate that THL Credit will post $1.13 earnings per share for the current year.
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The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 29th. Investors of record on Friday, September 15th will be paid a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a yield of 10.94%. The ex-dividend date is Thursday, September 14th. THL Credit’s dividend payout ratio is 145.95%.
In other THL Credit news, CEO Sam W. Tillinghast acquired 5,000 shares of the company’s stock in a transaction that occurred on Tuesday, June 6th. The stock was bought at an average price of $10.01 per share, with a total value of $50,050.00. Following the completion of the purchase, the chief executive officer now owns 127,704 shares of the company’s stock, valued at $1,278,317.04. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have purchased 6,925 shares of company stock valued at $69,056 in the last three months. 0.79% of the stock is owned by corporate insiders.
A number of large investors have recently bought and sold shares of the stock. Oxford Asset Management acquired a new stake in THL Credit during the first quarter valued at about $110,000. Stifel Financial Corp acquired a new stake in THL Credit during the first quarter valued at about $130,000. Founders Financial Securities LLC acquired a new stake in THL Credit during the first quarter valued at about $135,000. Nine Chapters Capital Management LLC acquired a new stake in THL Credit during the first quarter valued at about $176,000. Finally, Raymond James Financial Services Advisors Inc. raised its stake in THL Credit by 19.1% in the first quarter. Raymond James Financial Services Advisors Inc. now owns 21,117 shares of the investment management company’s stock valued at $210,000 after buying an additional 3,388 shares in the last quarter. 48.65% of the stock is owned by institutional investors.
About THL Credit
THL Credit, Inc is an externally managed, non-diversified closed-end management investment 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 lower middle market companies.
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