THL Credit (TCRD) Upgraded at Zacks Investment Research

Zacks Investment Research upgraded shares of THL Credit (NASDAQ:TCRD) from a sell rating to a hold rating in a report released on Friday.

According to Zacks, “THL Credit Inc. is a newly-organized, externally-managed, non-diversified closed-end management investment company that has filed an election to be treated as a business development company. The Company’s investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of middle market companies. The Company invests primarily in private subordinated debt, or mezzanine debt, in middle market companies that require capital for growth and acquisitions. Such investments in many cases include an associated equity component such as warrants, preferred stock or other similar securities. The Company’s investment activities are managed by its investment adviser, THL Credit Advisors LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended. “

A number of other equities analysts also recently commented on TCRD. BidaskClub downgraded THL Credit from a hold rating to a sell rating in a research report on Tuesday, July 31st. ValuEngine downgraded THL Credit from a sell rating to a strong sell rating in a research report on Tuesday, August 7th. National Securities reiterated a neutral rating and set a $10.00 price objective on shares of THL Credit in a research report on Tuesday, August 14th. Finally, Raymond James reiterated an underperform rating on shares of THL Credit in a research report on Friday. Three investment analysts have rated the stock with a sell rating and five have given a hold rating to the stock. The company currently has a consensus rating of Hold and a consensus target price of $9.85.

THL Credit stock traded down $0.14 during trading on Friday, reaching $7.25. 269,351 shares of the company were exchanged, compared to its average volume of 102,954. THL Credit has a 52-week low of $7.17 and a 52-week high of $9.67. The company has a market cap of $250.61 million, a price-to-earnings ratio of 5.99 and a beta of 1.07. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.29 and a current ratio of 0.29.

THL Credit (NASDAQ:TCRD) last announced its quarterly earnings data on Wednesday, November 7th. The investment management company reported $0.26 EPS for the quarter, missing the Zacks’ consensus estimate of $0.28 by ($0.02). THL Credit had a positive return on equity of 11.15% and a negative net margin of 8.89%. The company had revenue of $16.08 million for the quarter, compared to analysts’ expectations of $16.63 million. On average, analysts predict that THL Credit will post 1.14 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 31st. Shareholders of record on Friday, December 14th will be given a $0.27 dividend. The ex-dividend date of this dividend is Thursday, December 13th. This represents a $1.08 dividend on an annualized basis and a yield of 14.90%. THL Credit’s dividend payout ratio is currently 89.26%.

A number of large investors have recently bought and sold shares of TCRD. Citadel Advisors LLC purchased a new stake in THL Credit in the second quarter valued at $108,000. Dynamic Technology Lab Private Ltd purchased a new stake in THL Credit in the first quarter valued at $112,000. Trexquant Investment LP purchased a new stake in THL Credit in the third quarter valued at $123,000. Jane Street Group LLC purchased a new stake in THL Credit in the second quarter valued at $163,000. Finally, Globeflex Capital L P raised its position in THL Credit by 52.3% in the third quarter. Globeflex Capital L P now owns 87,342 shares of the investment management company’s stock valued at $705,000 after purchasing an additional 30,000 shares during the period. Institutional investors own 40.16% of the company’s stock.

THL Credit Company Profile

THL Credit, Inc is a business development company specializing in direct and fund of fund investments. The fund seeks to invest in debt and equity securities of middle market companies. It seeks to invest in PIPES, growth, acquisition, market or product expansion, recapitalization, mature, and change of control transactions in both sponsored and unsponsored issuers.

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