Zacks Investment Research downgraded shares of Garrison Capital (NASDAQ:GARS) from a hold rating to a strong sell rating in a research note issued to investors on Tuesday morning.
According to Zacks, “Garrison Capital Inc. is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation by making investments primarily in debt securities and loans of the United States-based middle-market companies, which it defines as those having annual earnings before interest, taxes and depreciation, or EBITDA of certain amount. It invests or provides direct lending in first lien senior secured loans, second lien senior secured loans, one-stop senior secured loans or unitranche loans, subordinated or mezzanine loans, unsecured consumer loans and to a lesser extent, selected equity co-investments in middle-market companies. The Company intends to generate risk-adjusted net returns by assembling a portfolio of investments. The Company’s investments include debt investments, preferred and minority equity investments (equity) of diversified companies and a portfolio of unsecured small balance consumer loans. “
Several other research analysts have also commented on GARS. National Securities reiterated a buy rating and issued a $11.00 price target on shares of Garrison Capital in a research report on Monday, November 12th. ValuEngine lowered Garrison Capital from a hold rating to a sell rating in a research report on Thursday, November 1st. Finally, Maxim Group lifted their price target on Garrison Capital from $11.00 to $12.00 and gave the stock a buy rating in a research report on Wednesday, September 26th.
Shares of GARS stock opened at $7.23 on Tuesday. Garrison Capital has a 12-month low of $7.16 and a 12-month high of $8.95. The company has a current ratio of 3.11, a quick ratio of 3.11 and a debt-to-equity ratio of 1.35. The stock has a market capitalization of $116.68 million, a PE ratio of 6.73 and a beta of 0.34.
Garrison Capital (NASDAQ:GARS) last issued its earnings results on Tuesday, November 6th. The investment management company reported $0.23 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.28 by ($0.05). Garrison Capital had a return on equity of 9.39% and a net margin of 25.90%. The firm had revenue of $9.31 million during the quarter, compared to the consensus estimate of $9.78 million. As a group, analysts predict that Garrison Capital will post 0.97 EPS for the current year.
The business also recently declared a quarterly dividend, which will be paid on Friday, December 21st. Investors of record on Friday, December 7th will be given a $0.23 dividend. The ex-dividend date is Thursday, December 6th. This represents a $0.92 annualized dividend and a yield of 12.72%. Garrison Capital’s dividend payout ratio is currently 85.98%.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Advisors Asset Management Inc. grew its position in Garrison Capital by 22.4% in the third quarter. Advisors Asset Management Inc. now owns 333,252 shares of the investment management company’s stock worth $2,759,000 after acquiring an additional 60,950 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. purchased a new position in Garrison Capital in the third quarter worth about $122,000. Acadian Asset Management LLC grew its position in Garrison Capital by 86.3% in the third quarter. Acadian Asset Management LLC now owns 71,053 shares of the investment management company’s stock worth $588,000 after acquiring an additional 32,922 shares in the last quarter. Clear Harbor Asset Management LLC purchased a new position in Garrison Capital in the third quarter worth about $712,000. Finally, Macquarie Group Ltd. purchased a new position in Garrison Capital in the second quarter worth about $211,000. Institutional investors own 26.07% of the company’s stock.
About Garrison Capital
Garrison Capital Inc is a business development company specializing in investments primarily in the debt and equity of middle market companies. It seeks to invest in first lien senior secured loans, second lien senior secured loans, ?one-stop? senior secured or ?unitranche? loans, subordinated or mezzanine loans, unsecured consumer loans and to a lesser extent, selected equity co-investments in middle-market companies, warrants and minority equity securities in United States middle-market companies.
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