National Securities reaffirmed their neutral rating on shares of Apollo Investment Corporation (NASDAQ:AINV) in a research report sent to investors on Wednesday morning. The firm currently has a $6.00 target price on the asset manager’s stock.
“• AINV reported NII/share of $0.15 for fiscal 1Q18, a penny shy of our estimate but covering the dividend. The portfolio at fair value had decent growth of 4% Q/Q with the company originating $330 million in investments.
• Non-accruals at amortized cost declined to $46.4 million or 1.9% of the portfolio from $183.1 million or 7.0% of the portfolio at amortized cost. We expect the company will have less non-accruals going forward and additionally will likely reduce concentration risk in the portfolio courtesy of co-investment being utilized more, in our opinion.
• Apollo also has verticals largely uncorrelated to traditional middle market lending such as aviation leasing, asset-based lending (ABL), and life sciences. These specialties should generate good deal flow with pricing that is impacted less overall than middle market lending alone.
• The market is likely to take a “show me” approach as Apollo continues to shift focus into what it seems are its core strategies. As a result of past NAV declines and dividend cuts, shares will be discounted until the company develops a track record of no or few non-accruals, leading to NAV stability and predictably high economic returns, in our opinion.
• We are revising our fiscal 2018 NII/share estimate to $0.65 from $0.65 and are maintaining our fiscal 2019 NII/share estimate of $0.66.
,” National Securities’ analyst wrote.
AINV has been the topic of several other reports. Zacks Investment Research downgraded Apollo Investment Corporation from a hold rating to a sell rating in a report on Tuesday, May 2nd. Keefe, Bruyette & Woods reiterated a hold rating and set a $6.50 target price on shares of Apollo Investment Corporation in a report on Friday, April 28th. Jefferies Group LLC reiterated a buy rating and set a $7.00 target price on shares of Apollo Investment Corporation in a report on Friday, July 14th. BMO Capital Markets reiterated a hold rating and set a $6.00 target price on shares of Apollo Investment Corporation in a report on Tuesday, April 11th. Finally, BidaskClub downgraded Apollo Investment Corporation from a hold rating to a sell rating in a report on Tuesday, July 25th. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating and one has assigned a buy rating to the stock. The stock has an average rating of Hold and a consensus price target of $6.33.
Shares of Apollo Investment Corporation (AINV) traded up 0.32% during trading on Wednesday, reaching $6.29. The company had a trading volume of 1,035,249 shares. Apollo Investment Corporation has a 52-week low of $5.65 and a 52-week high of $6.82. The firm has a 50-day moving average price of $6.37 and a 200-day moving average price of $6.37.
Apollo Investment Corporation (NASDAQ:AINV) last announced its earnings results on Friday, August 4th. The asset manager reported $0.15 EPS for the quarter, meeting the consensus estimate of $0.15. The business had revenue of $66.70 million for the quarter, compared to the consensus estimate of $65.19 million. Apollo Investment Corporation had a return on equity of 9.75% and a net margin of 33.04%. The company’s revenue was down 12.8% on a year-over-year basis. During the same period last year, the business posted $0.17 EPS. On average, analysts forecast that Apollo Investment Corporation will post $0.64 EPS for the current fiscal year.
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The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 5th. Shareholders of record on Thursday, September 21st will be issued a dividend of $0.15 per share. The ex-dividend date is Wednesday, September 20th. This represents a $0.60 annualized dividend and a yield of 9.54%. Apollo Investment Corporation’s dividend payout ratio is presently 150.00%.
A number of large investors have recently bought and sold shares of the company. Muzinich & Co. Inc. increased its stake in Apollo Investment Corporation by 8.1% in the second quarter. Muzinich & Co. Inc. now owns 9,566,415 shares of the asset manager’s stock valued at $61,129,000 after buying an additional 720,293 shares in the last quarter. Morgan Stanley increased its stake in Apollo Investment Corporation by 1.6% in the first quarter. Morgan Stanley now owns 3,525,248 shares of the asset manager’s stock valued at $23,125,000 after buying an additional 54,340 shares in the last quarter. Wells Fargo & Company MN increased its stake in Apollo Investment Corporation by 6.9% in the second quarter. Wells Fargo & Company MN now owns 2,901,119 shares of the asset manager’s stock valued at $18,538,000 after buying an additional 186,188 shares in the last quarter. UBS Group AG increased its stake in Apollo Investment Corporation by 54.7% in the first quarter. UBS Group AG now owns 2,461,815 shares of the asset manager’s stock valued at $16,150,000 after buying an additional 870,491 shares in the last quarter. Finally, Ares Management LLC increased its stake in Apollo Investment Corporation by 2.7% in the first quarter. Ares Management LLC now owns 2,432,945 shares of the asset manager’s stock valued at $15,960,000 after buying an additional 65,000 shares in the last quarter. Institutional investors own 46.29% of the company’s stock.
About Apollo Investment Corporation
Apollo Investment Corporation is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation. It invests primarily in various forms of debt investments, including secured and unsecured debt, loan investments and/or equity in private middle-market companies.
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