Monroe Capital Corporation (NASDAQ:MRCC)‘s stock had its “buy” rating reissued by analysts at National Securities in a research note issued to investors on Monday. They presently have a $17.00 target price on the financial services provider’s stock. National Securities’ price objective points to a potential upside of 19.89% from the company’s previous close.
The analysts wrote, “• MRCC posted adjusted NII/share of $0.35/share, matching both the dividend and our estimate and besting consensus estimates by a penny. The company didn’t need incentive fee waivers like in 2Q17 to cover the dividend on an adjusted NII basis.
• NAV/share was down 4 cents Q/Q to $14.01, largely as a result of realized losses on Fabco Automotive Corporation which was sold during the quarter.
• Non-accruals at cost decreased slightly Q/Q to $22.1 million from $23.1 million, with the only two non-accruals remaining Rocket Dog Brands and TPP Operating, underscoring the continued strain on the retail sector. We expect asset quality to remain stable and NAV/share to improve going forward driving double-digit economic returns for 2018.
• On 11/1/17, MRCC announced a senior loan fund (SLF) with NLV Financial Corp., the parent company of National Life Insurance Company. Each company committed $50.0 million of capital to the joint venture and investing should commence towards the end of 2017. With leverage, the SLF should have a total of $300.0 million of capital to invest. We think this was a smart move on Monroe’s part as the company can use lower yielding deals that are good credits with additional financial leverage to generate low double-digit ROEs.
• We are revising our 2017 adjusted NII/share estimate to $1.40 from $1.46 and our 2018 adjusted NII/share estimate to $1.50 from $1.57.”
A number of other brokerages have also issued reports on MRCC. BidaskClub raised shares of Monroe Capital Corporation from a “sell” rating to a “hold” rating in a report on Tuesday, July 25th. Zacks Investment Research raised shares of Monroe Capital Corporation from a “sell” rating to a “hold” rating in a report on Thursday. TheStreet lowered shares of Monroe Capital Corporation from a “b” rating to a “c+” rating in a report on Friday, August 25th. Finally, Ladenburg Thalmann Financial Services raised shares of Monroe Capital Corporation from a “neutral” rating to a “buy” rating and set a $16.00 price target on the stock in a report on Thursday, August 10th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $16.50.
Shares of Monroe Capital Corporation (NASDAQ:MRCC) opened at $14.18 on Monday. The stock has a market cap of $287.00, a price-to-earnings ratio of 10.13 and a beta of 0.58. Monroe Capital Corporation has a twelve month low of $13.32 and a twelve month high of $16.20. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.01 and a quick ratio of 1.01.
In related news, Chairman Theodore L. Koenig bought 21,800 shares of the company’s stock in a transaction dated Thursday, September 7th. The stock was purchased at an average cost of $13.61 per share, with a total value of $296,698.00. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Company insiders own 1.80% of the company’s stock.
Large investors have recently bought and sold shares of the company. JPMorgan Chase & Co. purchased a new stake in shares of Monroe Capital Corporation in the 2nd quarter worth about $114,000. Citadel Advisors LLC purchased a new stake in shares of Monroe Capital Corporation in the 3rd quarter worth about $144,000. Financial Counselors Inc. purchased a new stake in shares of Monroe Capital Corporation in the 2nd quarter worth about $156,000. KCG Holdings Inc. purchased a new stake in shares of Monroe Capital Corporation in the 1st quarter worth about $158,000. Finally, Spectrum Management Group Inc. purchased a new stake in shares of Monroe Capital Corporation in the 3rd quarter worth about $172,000. 27.95% of the stock is owned by hedge funds and other institutional investors.
About Monroe Capital Corporation
Monroe Capital Corporation is a closed-end, non-diversified management investment company. The Company is a specialty finance company focused on providing financing primarily to lower middle-market companies in the United States and Canada. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation primarily through investments in senior, unitranche and junior secured debt, and unsecured subordinated debt and equity.
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