Monroe Capital Corp (MRCC) Rating Reiterated by National Securities
Monroe Capital Corp (NASDAQ:MRCC)‘s stock had its “buy” rating reaffirmed by equities researchers at National Securities in a report released on Monday. They presently have a $17.00 target price on the financial services provider’s stock. National Securities’ price target would suggest a potential upside of 8.83% from the stock’s previous close.
The analysts wrote, “• Monroe posted adjusted NII/share of $0.35 versus consensus estimates of $0.36 and our estimate of $0.37. We expect NII/share to step-up through 2017 and 2018 as more capital is deployed and the portfolio grows with an additional tailwind being the additional SBIC (Small Business Investment Company) leverage the company has available.
• NAV/share was down to $14.34 from $14.52 Q/Q, driven by net unrealized losses widening to $4.0 million from $317,000. The unrealized losses were driven by a negative mark of $1.4 million on Rockdale Blackhawk. Despite the negative marks asset quality remains strong with no new non-accruals during the quarter and non-accruals finishing 3/31/17 at $22.2 million or 5.3% of the portfolio by amortized cost.
• Monroe has sufficient dry powder for meaningful portfolio growth the remainder of 2017 and through 2018 to $503.5 million and $613.6 million, respectively, from $418.2 million as of 1Q17 in our opinion. The company has $55.0 million of additional SBA debentures to draw on with regulatory D/E finishing the quarter at 0.57x compared to the company’s target of 0.70x-0.80x.
• We are vising our 2017 adjusted NII/share estimate to $1.49 from $1.57 and our 2018 adjusted NII/share estimate to $1.58 from $1.61.”
A number of other research analysts also recently issued reports on the stock. Zacks Investment Research downgraded shares of Monroe Capital Corp from a “hold” rating to a “sell” rating in a research report on Tuesday, February 28th. FBR & Co restated a “buy” rating and issued a $17.00 price target on shares of Monroe Capital Corp in a research report on Friday, March 10th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and five have given a buy rating to the company. Monroe Capital Corp currently has a consensus rating of “Buy” and a consensus price target of $17.08.
Shares of Monroe Capital Corp (NASDAQ:MRCC) opened at 15.62 on Monday. Monroe Capital Corp has a 12 month low of $13.37 and a 12 month high of $16.37. The company has a 50-day moving average of $15.70 and a 200-day moving average of $15.43.
Monroe Capital Corp (NASDAQ:MRCC) last posted its quarterly earnings results on Tuesday, May 9th. The financial services provider reported $0.36 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $0.36. Monroe Capital Corp had a net margin of 47.93% and a return on equity of 11.09%. The company had revenue of $12.01 million for the quarter, compared to the consensus estimate of $12.36 million. Equities analysts anticipate that Monroe Capital Corp will post $1.44 EPS for the current fiscal year.
In other Monroe Capital Corp news, Chairman Theodore L. Koenig purchased 5,710 shares of Monroe Capital Corp stock in a transaction dated Thursday, May 11th. The shares were bought at an average cost of $15.49 per share, for a total transaction of $88,447.90. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 1.90% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of MRCC. Muzinich & Co. Inc. increased its position in Monroe Capital Corp by 54.5% in the first quarter. Muzinich & Co. Inc. now owns 674,942 shares of the financial services provider’s stock worth $10,617,000 after buying an additional 238,038 shares during the last quarter. Sumitomo Mitsui Asset Management Company LTD increased its position in Monroe Capital Corp by 90.5% in the first quarter. Sumitomo Mitsui Asset Management Company LTD now owns 364,758 shares of the financial services provider’s stock worth $5,737,000 after buying an additional 173,280 shares during the last quarter. Van ECK Associates Corp acquired a new position in Monroe Capital Corp during the first quarter worth about $1,995,000. Advisory Research Inc. increased its position in Monroe Capital Corp by 128.1% in the fourth quarter. Advisory Research Inc. now owns 204,089 shares of the financial services provider’s stock worth $3,139,000 after buying an additional 114,597 shares during the last quarter. Finally, UBS Group AG increased its position in Monroe Capital Corp by 38.3% in the third quarter. UBS Group AG now owns 318,430 shares of the financial services provider’s stock worth $5,008,000 after buying an additional 88,187 shares during the last quarter. Institutional investors own 29.67% of the company’s stock.
About Monroe Capital Corp
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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