Monroe Capital (MRCC) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Monroe Capital (NASDAQ:MRCC) from a hold rating to a sell rating in a research note issued to investors on Friday morning.

According to Zacks, “Monroe Capital Corporation is a non-diversified closed-end management investment company focused on providing financing primarily to lower middle-market companies in the United States and Canada. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investments in senior, unitranche and junior secured debt and unsecured debt and equity investments. Monroe Capital Corporation is headquartered in Chicago. “

Several other research firms have also commented on MRCC. National Securities reissued a buy rating and set a $16.00 target price on shares of Monroe Capital in a research note on Monday, September 10th. BidaskClub lowered shares of Monroe Capital from a hold rating to a sell rating in a research note on Wednesday, August 22nd. ValuEngine lowered shares of Monroe Capital from a sell rating to a strong sell rating in a research note on Wednesday. Raymond James lowered shares of Monroe Capital from an outperform rating to a market perform rating in a research note on Wednesday. Finally, B. Riley cut their target price on shares of Monroe Capital from $13.50 to $12.50 and set a neutral rating for the company in a research note on Thursday. Two analysts have rated the stock with a sell rating, five have given a hold rating and one has issued a buy rating to the stock. The stock presently has a consensus rating of Hold and an average target price of $13.38.

MRCC stock traded down $0.19 on Friday, hitting $11.49. 232,529 shares of the company’s stock traded hands, compared to its average volume of 131,344. Monroe Capital has a 1-year low of $11.16 and a 1-year high of $14.65. The firm has a market cap of $236.54 million, a PE ratio of 7.71 and a beta of 0.77. The company has a debt-to-equity ratio of 0.86, a current ratio of 3.01 and a quick ratio of 2.08.

Monroe Capital (NASDAQ:MRCC) last released its earnings results on Tuesday, November 6th. The financial services provider reported $0.38 EPS for the quarter, beating the consensus estimate of $0.36 by $0.02. Monroe Capital had a net margin of 12.16% and a return on equity of 8.24%. The business had revenue of $13.78 million during the quarter, compared to analyst estimates of $15.36 million. As a group, sell-side analysts expect that Monroe Capital will post 1.54 earnings per share for the current year.

Several hedge funds have recently added to or reduced their stakes in MRCC. Palo Capital Inc. acquired a new stake in shares of Monroe Capital during the second quarter valued at approximately $166,000. Raymond James Financial Services Advisors Inc. acquired a new stake in shares of Monroe Capital during the second quarter valued at approximately $192,000. JPMorgan Chase & Co. raised its holdings in shares of Monroe Capital by 630.3% during the first quarter. JPMorgan Chase & Co. now owns 18,989 shares of the financial services provider’s stock valued at $234,000 after acquiring an additional 16,389 shares during the period. BB&T Securities LLC raised its holdings in shares of Monroe Capital by 62.3% during the second quarter. BB&T Securities LLC now owns 19,390 shares of the financial services provider’s stock valued at $261,000 after acquiring an additional 7,440 shares during the period. Finally, Ashfield Capital Partners LLC acquired a new stake in shares of Monroe Capital during the second quarter valued at approximately $279,000. Institutional investors and hedge funds own 24.55% of the company’s stock.

Monroe Capital Company Profile

Monroe Capital Corporation is a business development company specializing in senior, unitranche and junior secured debt and to a lesser extent, unsecured debt and equity investments, and buyouts in middle-market companies. The fund prefers to invest in casinos and gaming, broadcasting, publishing, alcoholic beverage and tobacco distribution, oil and gas, insurance, pharmaceuticals and bio sciences, aerospace and defense, commercial printing, natural rubber, glass, container and packaging, metals and mining, and real estate.

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