MVC Capital (MVC) Cut to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of MVC Capital (NYSE:MVC) from a hold rating to a sell rating in a research report report published on Saturday.

According to Zacks, “MVC CAPITAL INC is a business development company traded on the New York Stock Exchange, under the listing symbol MVC and is advised by The Tokarz Group Advisers LLC. MVC provides long-term equity and debt investment capital to fund growth, acquisitions and recapitalizations of small and middle-market companies in a variety of industries primarily located in the U.S. The investments can take the form of common and preferred stock (control and non-control investments) and warrants or rights to acquire equity interests; senior and subordinated loans; or convertible securities. MVC serves as the lead investor for transactions, as well as a co-investor in companies along with other private equity sponsors. “

Several other research firms have also issued reports on MVC. TheStreet lowered shares of MVC Capital from a b rating to a c rating in a report on Thursday, September 20th. Maxim Group restated a buy rating and issued a $12.50 target price on shares of MVC Capital in a report on Thursday, September 27th. Finally, ValuEngine upgraded shares of MVC Capital from a sell rating to a hold rating in a report on Tuesday, September 4th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and two have issued a buy rating to the stock. MVC Capital has a consensus rating of Hold and an average target price of $12.25.

MVC stock opened at $8.97 on Friday. The firm has a market capitalization of $169.38 million, a P/E ratio of -26.38 and a beta of 0.62. The company has a current ratio of 63.15, a quick ratio of 63.15 and a debt-to-equity ratio of 0.48. MVC Capital has a 12-month low of $8.95 and a 12-month high of $10.97.

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 31st. Investors of record on Thursday, October 25th were issued a $0.15 dividend. The ex-dividend date of this dividend was Wednesday, October 24th. This represents a $0.60 annualized dividend and a yield of 6.69%. MVC Capital’s payout ratio is -176.47%.

In other news, Director Phillip Goldstein sold 8,802 shares of the company’s stock in a transaction dated Monday, September 24th. The shares were sold at an average price of $9.76, for a total transaction of $85,907.52. Following the transaction, the director now owns 22,149 shares in the company, valued at $216,174.24. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In the last 90 days, insiders sold 492,429 shares of company stock worth $4,643,031. 12.58% of the stock is owned by company insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Legal & General Group Plc raised its holdings in shares of MVC Capital by 11.9% during the first quarter. Legal & General Group Plc now owns 75,747 shares of the investment management company’s stock valued at $754,000 after purchasing an additional 8,063 shares during the period. Arlington Financial Advisors LLC acquired a new position in shares of MVC Capital during the second quarter valued at about $113,000. Russell Investments Group Ltd. acquired a new position in shares of MVC Capital during the second quarter valued at about $150,000. Advisors Asset Management Inc. raised its holdings in shares of MVC Capital by 32.0% during the second quarter. Advisors Asset Management Inc. now owns 153,202 shares of the investment management company’s stock valued at $1,455,000 after purchasing an additional 37,128 shares during the period. Finally, West Family Investments Inc. raised its holdings in shares of MVC Capital by 8.6% during the second quarter. West Family Investments Inc. now owns 1,200,397 shares of the investment management company’s stock valued at $11,404,000 after purchasing an additional 95,000 shares during the period. Hedge funds and other institutional investors own 42.92% of the company’s stock.

MVC Capital Company Profile

MVC Capital, Inc is a business development company specializing in equity, acquisition financing, mezzanine financing, management buyouts, leveraged buildups, corporate partnerships, PIPE transactions, going private transactions, private company recapitalizations, operational turnarounds, and growth and expansion capital transaction financing.

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