Triangle Capital Corporation (NYSE:TCAP) Lowered to “Neutral” at National Securities
Triangle Capital Corporation (NYSE:TCAP) was downgraded by analysts at National Securities from a “buy” rating to a “neutral” rating in a research note issued on Monday. They currently have a $18.00 target price on the credit services provider’s stock, down from their previous target price of $22.00. National Securities’ price objective points to a potential upside of 23.03% from the stock’s previous close.
The analysts wrote, “• TCAP reported NII/share of $0.41 versus our estimate of $0.44 and the dividend of $0.45. Total non-accruals at cost (including PIK) increased to $94.1 million or 7.5% of the portfolio from $68.2 million or 5.7% of the portfolio Q/Q. The worrisome trend continues to get worse and the pattern of PIK non-accruals turning into full cash non-accruals has been maintained as well. We do not expect this to resolve itself any time soon and as a result we think the non-accruals will continue to weigh on all-in effective yields on the portfolio, causing TCAP to continue to under-earn the dividend and eventually force them to cut it to $0.39/share in 1Q18.
• NAV/share decreased by 3% Q/Q to $14.85 from $15.29, generating an annualized economic return of 0.1%. We expect this will not be the end of NAV declines for the year and model NAV/share to finish 2017 at $14.18 before we expect it to recover in 2018. Realized losses finished 2Q17 at $80.9 million from $54.7 million in 1Q17 and $42.6 million a year ago and we expect this to increase to $105.3 million in 1Q18.
• We are revising our 2017 NII/share estimate to $1.68 from $1.81 and our 2018 NII/share estimate to $1.77 from $1.96.”
Several other equities research analysts have also recently commented on TCAP. JMP Securities cut shares of Triangle Capital Corporation from an “outperform” rating to a “market perform” rating in a research report on Thursday. Hilliard Lyons cut shares of Triangle Capital Corporation from a “buy” rating to a “neutral” rating in a research report on Monday. BidaskClub downgraded Triangle Capital Corporation from a “sell” rating to a “strong sell” rating in a report on Friday. Keefe, Bruyette & Woods downgraded Triangle Capital Corporation from an “outperform” rating to a “market perform” rating and cut their price objective for the stock from $20.50 to $18.00 in a report on Thursday. Finally, Zacks Investment Research downgraded Triangle Capital Corporation from a “hold” rating to a “sell” rating in a report on Thursday, July 13th. Two analysts have rated the stock with a sell rating, four have issued a hold rating and five have issued a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average target price of $20.17.
Shares of Triangle Capital Corporation (TCAP) opened at 14.61 on Monday. The firm has a market capitalization of $696.62 million, a PE ratio of 19.48 and a beta of 0.90. The company has a 50-day moving average of $17.56 and a 200-day moving average of $18.47. Triangle Capital Corporation has a 52 week low of $14.56 and a 52 week high of $20.35.
Triangle Capital Corporation (NYSE:TCAP) last issued its quarterly earnings results on Wednesday, August 2nd. The credit services provider reported $0.41 EPS for the quarter, missing the consensus estimate of $0.42 by $0.01. Triangle Capital Corporation had a return on equity of 10.51% and a net margin of 16.92%. The business had revenue of $31.20 million during the quarter, compared to the consensus estimate of $33.25 million. During the same quarter last year, the firm posted $0.49 earnings per share. Triangle Capital Corporation’s revenue was up 3.3% compared to the same quarter last year. On average, equities analysts forecast that Triangle Capital Corporation will post $1.71 earnings per share for the current fiscal year.
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In other Triangle Capital Corporation news, insider C. Robert Jr. Knox sold 3,000 shares of the business’s stock in a transaction dated Friday, June 23rd. The stock was sold at an average price of $17.72, for a total transaction of $53,160.00. Following the sale, the insider now owns 75,716 shares in the company, valued at approximately $1,341,687.52. The transaction was disclosed in a filing with the SEC, which is available through this link. 4.10% of the stock is currently owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in TCAP. HL Financial Services LLC boosted its position in Triangle Capital Corporation by 2.7% in the first quarter. HL Financial Services LLC now owns 11,350 shares of the credit services provider’s stock valued at $217,000 after buying an additional 300 shares during the period. Wealthsource Partners LLC boosted its position in Triangle Capital Corporation by 2.7% in the first quarter. Wealthsource Partners LLC now owns 16,415 shares of the credit services provider’s stock valued at $313,000 after buying an additional 425 shares during the period. BB&T Corp boosted its position in Triangle Capital Corporation by 3.0% in the first quarter. BB&T Corp now owns 22,535 shares of the credit services provider’s stock valued at $430,000 after buying an additional 659 shares during the period. Baird Financial Group Inc. boosted its position in Triangle Capital Corporation by 3.0% in the first quarter. Baird Financial Group Inc. now owns 32,715 shares of the credit services provider’s stock valued at $625,000 after buying an additional 939 shares during the period. Finally, Sheaff Brock Investment Advisors LLC boosted its position in Triangle Capital Corporation by 8.1% in the first quarter. Sheaff Brock Investment Advisors LLC now owns 14,053 shares of the credit services provider’s stock valued at $268,000 after buying an additional 1,048 shares during the period. 31.86% of the stock is currently owned by institutional investors.
Triangle Capital Corporation Company Profile
Triangle Capital Corporation is an internally managed, non-diversified closed-end management investment company. The Company is a specialty finance company that provides customized financing to lower middle market companies located primarily in the United States. The Company’s investment objective is to seek attractive returns by generating current income from its debt investments and capital appreciation from its equity-related investments.
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