Zacks Investment Research Lowers Medley Capital (MCC) to Sell

Zacks Investment Research downgraded shares of Medley Capital (NYSE:MCC) from a hold rating to a sell rating in a report issued on Wednesday morning.

According to Zacks, “Medley Capital Corporation is a closed-end, externally managed investment company. Medley Capital Corporation’s objective is to generate current income and capital appreciation by lending directly to privately-held small and middle market companies to help these companies fund acquisitions, growth or refinancing. Their portfolio will generally consist of first lien senior secured loans, and, to a lesser extent, second lien secured loans. In many of their investments, they will get warrants or other equity participation features which they believe will increase the total investment returns. “

MCC has been the topic of several other reports. ValuEngine raised Medley Capital from a hold rating to a buy rating in a research note on Friday, December 1st. Jefferies Group restated a hold rating and set a $6.50 price objective on shares of Medley Capital in a report on Wednesday, August 16th. Keefe, Bruyette & Woods restated a hold rating and set a $7.00 price objective on shares of Medley Capital in a report on Wednesday, August 16th. Finally, National Securities restated a neutral rating and set a $6.00 price objective on shares of Medley Capital in a report on Thursday, December 7th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the stock. Medley Capital currently has a consensus rating of Hold and a consensus price target of $6.17.

Shares of Medley Capital (MCC) traded up $0.06 on Wednesday, reaching $5.44. The company’s stock had a trading volume of 492,092 shares, compared to its average volume of 353,944. Medley Capital has a 12-month low of $5.32 and a 12-month high of $8.05. The company has a debt-to-equity ratio of 1.06, a quick ratio of 11.02 and a current ratio of 11.02. The firm has a market capitalization of $293.07, a price-to-earnings ratio of 7.91, a PEG ratio of 1.68 and a beta of 1.21.

Medley Capital (NYSE:MCC) last issued its quarterly earnings results on Thursday, December 7th. The investment management company reported $0.16 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.16. Medley Capital had a positive return on equity of 7.50% and a negative net margin of 15.66%. The firm had revenue of $22.10 million for the quarter, compared to analyst estimates of $23.51 million. During the same period in the previous year, the firm earned $0.23 earnings per share. The company’s revenue was down 18.7% compared to the same quarter last year. equities research analysts expect that Medley Capital will post 0.64 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 22nd. Stockholders of record on Wednesday, November 22nd will be issued a dividend of $0.16 per share. The ex-dividend date of this dividend is Tuesday, November 21st. This represents a $0.64 annualized dividend and a dividend yield of 11.76%. Medley Capital’s dividend payout ratio is -246.15%.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Airain ltd increased its holdings in shares of Medley Capital by 2.7% during the second quarter. Airain ltd now owns 17,362 shares of the investment management company’s stock valued at $111,000 after acquiring an additional 462 shares in the last quarter. BB&T Securities LLC bought a new stake in shares of Medley Capital during the second quarter valued at approximately $112,000. Macquarie Group Ltd. bought a new stake in shares of Medley Capital during the third quarter valued at approximately $124,000. Citadel Advisors LLC bought a new stake in shares of Medley Capital during the second quarter valued at approximately $156,000. Finally, Cubist Systematic Strategies LLC bought a new stake in Medley Capital during the second quarter worth $158,000. Hedge funds and other institutional investors own 29.34% of the company’s stock.

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About Medley Capital

Medley Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate current income and capital appreciation by lending directly to privately-held middle market companies, primarily through directly originated transactions to help these companies expand their business, refinance and make acquisitions.

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