KCAP Financial Inc (NASDAQ:KCAP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Friday.

According to Zacks, “KCAP Financial Inc. is an internally managed business development company. The Company’s middle market investment business originates, structures, finances and manages a portfolio of term loans, mezzanine investments and selected equity securities in middle market companies. KCAP Financial Inc., formerly Kohlberg Capital Corp., is based in the New York. “

A number of other research firms also recently commented on KCAP. Keefe, Bruyette & Woods reaffirmed a “hold” rating and set a $4.00 price objective on shares of KCAP Financial in a report on Friday, April 28th. BMO Capital Markets reiterated a “buy” rating and set a $16.00 target price on shares of KCAP Financial in a research report on Monday, May 1st.

Shares of KCAP Financial (NASDAQ:KCAP) traded up 0.29% during midday trading on Friday, hitting $3.51. 100,581 shares of the company were exchanged. The stock’s 50-day moving average is $3.75 and its 200-day moving average is $3.93. KCAP Financial has a one year low of $3.39 and a one year high of $4.89. The stock has a market cap of $129.19 million, a PE ratio of 21.94 and a beta of 1.77.

KCAP Financial (NASDAQ:KCAP) last released its quarterly earnings data on Thursday, May 4th. The financial services provider reported $0.09 EPS for the quarter, missing analysts’ consensus estimates of $0.10 by $0.01. The business had revenue of $7.77 million for the quarter, compared to the consensus estimate of $8.08 million. KCAP Financial had a positive return on equity of 9.57% and a negative net margin of 32.88%. Equities research analysts anticipate that KCAP Financial will post $0.40 EPS for the current year.

The company also recently announced a quarterly dividend, which was paid on Friday, April 28th. Investors of record on Friday, April 7th were given a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 13.71%. The ex-dividend date of this dividend was Wednesday, April 5th. KCAP Financial’s dividend payout ratio (DPR) is currently -141.17%.

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Large investors have recently made changes to their positions in the company. Goldman Sachs Group Inc. boosted its stake in shares of KCAP Financial by 43.9% in the first quarter. Goldman Sachs Group Inc. now owns 55,589 shares of the financial services provider’s stock worth $226,000 after buying an additional 16,970 shares during the period. Credit Suisse AG bought a new stake in KCAP Financial during the first quarter valued at $3,352,000. UBS Group AG boosted its stake in KCAP Financial by 23.1% in the first quarter. UBS Group AG now owns 925,447 shares of the financial services provider’s stock valued at $3,767,000 after buying an additional 173,888 shares during the last quarter. Ares Management LLC boosted its stake in KCAP Financial by 4.0% in the first quarter. Ares Management LLC now owns 154,835 shares of the financial services provider’s stock valued at $630,000 after buying an additional 6,000 shares during the last quarter. Finally, Legal & General Group Plc boosted its stake in KCAP Financial by 3.0% in the first quarter. Legal & General Group Plc now owns 85,400 shares of the financial services provider’s stock valued at $346,000 after buying an additional 2,505 shares during the last quarter. Institutional investors and hedge funds own 15.64% of the company’s stock.

KCAP Financial Company Profile

KCAP Financial, Inc is an internally managed, non-diversified closed-end investment company. The Company has approximately three principal areas of investments. First, the Company originates, structures and invests in senior secured term loans and mezzanine debt primarily in privately-held middle market companies (the debt securities portfolio).

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