THL Credit (TCRD) Rating Lowered to Sell at Zacks Investment Research

THL Credit (NASDAQ:TCRD) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Friday.

According to Zacks, “THL Credit Inc. is a newly-organized, externally-managed, non-diversified closed-end management investment company that has filed an election to be treated as a business development 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 middle market companies. The Company invests primarily in private subordinated debt, or mezzanine debt, in middle market companies that require capital for growth and acquisitions. Such investments in many cases include an associated equity component such as warrants, preferred stock or other similar securities. The Company’s investment activities are managed by its investment adviser, THL Credit Advisors LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended. “

A number of other research analysts have also recently commented on the company. ValuEngine cut THL Credit from a “sell” rating to a “strong sell” rating in a research report on Thursday. BidaskClub lowered THL Credit from a “hold” rating to a “sell” rating in a research note on Monday, October 8th. Finally, National Securities reiterated a “neutral” rating and set a $10.00 price objective on shares of THL Credit in a research note on Tuesday, August 14th. Three investment analysts have rated the stock with a sell rating and four have assigned a hold rating to the company’s stock. The company has a consensus rating of “Hold” and an average price target of $9.85.

Shares of NASDAQ TCRD opened at $7.62 on Friday. THL Credit has a one year low of $7.57 and a one year high of $9.67. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.29 and a current ratio of 0.29. The firm has a market cap of $248.98 million, a PE ratio of 6.40 and a beta of 1.07.

THL Credit (NASDAQ:TCRD) last issued its quarterly earnings results on Wednesday, August 8th. The investment management company reported $0.31 EPS for the quarter, beating analysts’ consensus estimates of $0.27 by $0.04. THL Credit had a positive return on equity of 11.15% and a negative net margin of 8.89%. The firm had revenue of $18.36 million for the quarter, compared to analysts’ expectations of $16.92 million. As a group, research analysts expect that THL Credit will post 1.14 EPS for the current fiscal year.

Several large investors have recently added to or reduced their stakes in the stock. West Family Investments Inc. raised its stake in shares of THL Credit by 8.0% during the 2nd quarter. West Family Investments Inc. now owns 729,374 shares of the investment management company’s stock valued at $5,704,000 after purchasing an additional 54,069 shares during the period. Fiera Capital Corp raised its stake in shares of THL Credit by 2.5% during the 2nd quarter. Fiera Capital Corp now owns 717,358 shares of the investment management company’s stock valued at $5,610,000 after purchasing an additional 17,235 shares during the period. Fort Washington Investment Advisors Inc. OH raised its stake in shares of THL Credit by 51.2% during the 2nd quarter. Fort Washington Investment Advisors Inc. OH now owns 369,234 shares of the investment management company’s stock valued at $2,887,000 after purchasing an additional 125,000 shares during the period. Personal Resources Investment & Strategic Management Inc. raised its stake in shares of THL Credit by 4.8% during the 2nd quarter. Personal Resources Investment & Strategic Management Inc. now owns 161,360 shares of the investment management company’s stock valued at $1,313,000 after purchasing an additional 7,383 shares during the period. Finally, Cliffwater LLC raised its stake in shares of THL Credit by 14.0% during the 2nd quarter. Cliffwater LLC now owns 145,424 shares of the investment management company’s stock valued at $1,137,000 after purchasing an additional 17,846 shares during the period. Institutional investors own 40.18% of the company’s stock.

THL Credit Company Profile

THL Credit, Inc is a business development company specializing in direct and fund of fund investments. The fund seeks to invest in debt and equity securities of middle market companies. It seeks to invest in PIPES, growth, acquisition, market or product expansion, recapitalization, mature, and change of control transactions in both sponsored and unsponsored issuers.

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