THL Credit (TCRD) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of THL Credit (NASDAQ:TCRD) from a hold rating to a sell rating in a report issued on Friday morning.

According to Zacks, “THL Credit Inc. is a newly-organized, externally-managed, non-diversified closed-end management investment company that has filed an election to be treated as a business development company. The Company’s investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of middle market companies. The Company invests primarily in private subordinated debt, or mezzanine debt, in middle market companies that require capital for growth and acquisitions. Such investments in many cases include an associated equity component such as warrants, preferred stock or other similar securities. The Company’s investment activities are managed by its investment adviser, THL Credit Advisors LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended. “

Other equities research analysts have also recently issued reports about the company. BidaskClub raised THL Credit from a hold rating to a buy rating in a report on Saturday, September 15th. National Securities reissued a neutral rating and set a $10.00 price target on shares of THL Credit in a report on Tuesday, August 14th. Finally, ValuEngine raised THL Credit from a strong sell rating to a sell rating in a report on Saturday, September 1st. Three equities research analysts have rated the stock with a sell rating and four have issued a hold rating to the stock. The company presently has an average rating of Hold and a consensus target price of $9.85.

NASDAQ:TCRD opened at $7.62 on Friday. The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 0.43. The stock has a market cap of $248.97 million, a price-to-earnings ratio of 6.30 and a beta of 1.07. THL Credit has a 52 week low of $7.57 and a 52 week high of $9.67.

THL Credit (NASDAQ:TCRD) last posted its quarterly earnings results on Wednesday, August 8th. The investment management company reported $0.31 EPS for the quarter, beating the Zacks’ consensus estimate of $0.27 by $0.04. The business had revenue of $18.36 million for the quarter, compared to analysts’ expectations of $16.92 million. THL Credit had a positive return on equity of 11.15% and a negative net margin of 8.89%. As a group, analysts predict that THL Credit will post 1.14 earnings per share for the current fiscal year.

Hedge funds have recently modified their holdings of the company. Citadel Advisors LLC bought a new stake in THL Credit during the second quarter worth approximately $108,000. Dynamic Technology Lab Private Ltd bought a new stake in THL Credit during the first quarter worth approximately $112,000. Jane Street Group LLC bought a new stake in THL Credit during the second quarter worth approximately $163,000. Legal & General Group Plc increased its stake in THL Credit by 17.9% during the first quarter. Legal & General Group Plc now owns 118,856 shares of the investment management company’s stock worth $924,000 after acquiring an additional 18,060 shares during the last quarter. Finally, Cliffwater LLC increased its stake in THL Credit by 14.0% during the second quarter. Cliffwater LLC now owns 145,424 shares of the investment management company’s stock worth $1,137,000 after acquiring an additional 17,846 shares during the last quarter. 40.16% of the stock is currently owned by hedge funds and other institutional investors.

THL Credit Company Profile

THL Credit, Inc is a business development company specializing in direct and fund of fund investments. The fund seeks to invest in debt and equity securities of middle market companies. It seeks to invest in PIPES, growth, acquisition, market or product expansion, recapitalization, mature, and change of control transactions in both sponsored and unsponsored issuers.

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