Great Elm Capital (GECC) Upgraded to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Great Elm Capital (NASDAQ:GECC) from a hold rating to a buy rating in a report released on Tuesday morning, Zacks.com reports. Zacks Investment Research currently has $9.50 target price on the financial services provider’s stock.

According to Zacks, “Great Elm Capital Corp. is a diversified investment company. Its business line consists of investment management, financial products and merchant banking. Great Elm Capital Corp. is based in Baltimore, Maryland. “

Separately, ValuEngine raised Great Elm Capital from a sell rating to a hold rating in a report on Wednesday, May 1st.

Shares of NASDAQ:GECC opened at $8.80 on Tuesday. Great Elm Capital has a 52-week low of $7.47 and a 52-week high of $10.07. The stock has a market capitalization of $90.25 million, a PE ratio of 6.11 and a beta of 0.83. The company has a debt-to-equity ratio of 0.67, a current ratio of 0.09 and a quick ratio of 0.20.

Great Elm Capital (NASDAQ:GECC) last announced its quarterly earnings data on Tuesday, May 14th. The financial services provider reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.02. The firm had revenue of $6.31 million during the quarter, compared to analysts’ expectations of $6.71 million. Great Elm Capital had a return on equity of 11.94% and a net margin of 11.68%. As a group, equities analysts predict that Great Elm Capital will post 1.02 earnings per share for the current fiscal year.

The business also recently announced a monthly dividend, which will be paid on Monday, July 15th. Investors of record on Friday, June 28th will be issued a dividend of $0.083 per share. This represents a $1.00 annualized dividend and a yield of 11.32%. The ex-dividend date of this dividend is Thursday, June 27th. Great Elm Capital’s dividend payout ratio (DPR) is 69.44%.

In related news, major shareholder Mast Capital Management, Llc sold 149,000 shares of the firm’s stock in a transaction dated Thursday, May 16th. The stock was sold at an average price of $8.68, for a total transaction of $1,293,320.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Over the last ninety days, insiders have sold 873,209 shares of company stock worth $7,270,744. 1.40% of the stock is owned by corporate insiders.

Institutional investors and hedge funds have recently modified their holdings of the business. B. Riley Financial Inc. acquired a new stake in Great Elm Capital in the fourth quarter valued at approximately $261,000. Monarch Partners Asset Management LLC acquired a new stake in Great Elm Capital in the fourth quarter valued at approximately $365,000. Stilwell Value LLC acquired a new stake in Great Elm Capital in the fourth quarter valued at approximately $141,000. Acadian Asset Management LLC grew its holdings in Great Elm Capital by 30.1% in the fourth quarter. Acadian Asset Management LLC now owns 21,968 shares of the financial services provider’s stock valued at $173,000 after purchasing an additional 5,083 shares during the period. Finally, OTA Financial Group L.P. acquired a new stake in Great Elm Capital in the fourth quarter valued at approximately $992,000. 13.12% of the stock is currently owned by institutional investors.

About Great Elm Capital

Great Elm Capital Corporation is a business development company which specializes in loan and mezzanine, middle market investments. The fund prefers to invest in media, commercial services and supplies, healthcare, telecommunication services, communications equipment. It typically makes equity investments between $3 million and $10 million in companies with revenues between $3 million and $75 million.

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