Great Elm Capital (NASDAQ:GECC) Upgraded to Buy at Zacks Investment Research

Great Elm Capital (NASDAQ:GECC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Thursday, Zacks.com reports. The brokerage currently has a $3.75 price target on the financial services provider’s stock. Zacks Investment Research‘s price target suggests a potential upside of 10.29% from the company’s current price.

According to Zacks, “Great Elm Capital Corp. is a diversified investment company. Its business line consists of investment management, financial products and merchant banking. Great Elm Capital Corp. is based in Baltimore, Maryland. “

GECC stock opened at $3.40 on Thursday. The company has a current ratio of 0.48, a quick ratio of 0.48 and a debt-to-equity ratio of 1.79. Great Elm Capital has a one year low of $2.50 and a one year high of $4.12. The firm has a market capitalization of $79.93 million, a PE ratio of 3.66 and a beta of 2.05. The firm has a 50-day moving average of $3.44 and a two-hundred day moving average of $3.43.

Great Elm Capital (NASDAQ:GECC) last posted its quarterly earnings results on Tuesday, August 3rd. The financial services provider reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.08 by $0.01. The business had revenue of $6.23 million during the quarter, compared to analyst estimates of $6.24 million. Great Elm Capital had a net margin of 56.42% and a return on equity of 8.89%. On average, equities research analysts anticipate that Great Elm Capital will post 0.33 earnings per share for the current year.

Large investors have recently added to or reduced their stakes in the stock. Virtu Financial LLC acquired a new position in Great Elm Capital in the first quarter worth approximately $119,000. Cove Street Capital LLC acquired a new position in Great Elm Capital during the second quarter valued at approximately $237,000. Squarepoint Ops LLC acquired a new position in Great Elm Capital during the first quarter valued at approximately $264,000. Arrowstreet Capital Limited Partnership grew its holdings in Great Elm Capital by 14.6% during the first quarter. Arrowstreet Capital Limited Partnership now owns 130,620 shares of the financial services provider’s stock valued at $444,000 after purchasing an additional 16,646 shares during the last quarter. Finally, Morgan Stanley grew its holdings in Great Elm Capital by 2.3% during the first quarter. Morgan Stanley now owns 277,741 shares of the financial services provider’s stock valued at $945,000 after purchasing an additional 6,349 shares during the last quarter. Hedge funds and other institutional investors own 16.11% of the company’s stock.

Great Elm Capital Company Profile

Great Elm Capital is an externally-managed business development company that invests in the debt instruments of middle-market companies. The company seeks to generate current income and capital appreciation through debt and equity investments and invests primarily in senior secured and senior unsecured debt instruments, as well as in junior loans and mezzanine debt of middle-market companies and small businesses.

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