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 analysts have also recently commented on the stock. ValuEngine cut shares of Xylem from a buy rating to a hold rating in a research note on Tuesday, May 14th. National Securities reiterated a sell rating and issued a $4.00 target price on shares of Prospect Capital in a research note on Monday, May 13th. One research analyst has rated the stock with a sell rating and four have given a hold rating to the stock. The stock currently has a consensus rating of Hold and an average target price of $8.13.
Shares of THL Credit stock opened at $6.63 on Friday. The stock has a 50 day moving average price of $6.63. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.18 and a current ratio of 0.18. THL Credit has a 52-week low of $5.80 and a 52-week high of $8.75. The stock has a market cap of $210.89 million, a P/E ratio of 6.20 and a beta of 1.08.
THL Credit (NASDAQ:TCRD) last released its earnings results on Thursday, May 9th. The investment management company reported $0.21 EPS for the quarter, missing analysts’ consensus estimates of $0.24 by ($0.03). The company had revenue of $14.19 million during the quarter, compared to analyst estimates of $15.19 million. THL Credit had a positive return on equity of 10.48% and a negative net margin of 25.94%. As a group, equities research analysts expect that THL Credit will post 0.91 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Friday, June 28th. Investors of record on Friday, June 14th were paid a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 12.67%. The ex-dividend date was Thursday, June 13th. THL Credit’s dividend payout ratio (DPR) is presently 78.50%.
A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Fiera Capital Corp lifted its stake in shares of THL Credit by 31.4% in the 1st quarter. Fiera Capital Corp now owns 1,569,327 shares of the investment management company’s stock valued at $10,295,000 after purchasing an additional 374,634 shares during the period. LSV Asset Management lifted its stake in shares of THL Credit by 0.5% in the 1st quarter. LSV Asset Management now owns 961,257 shares of the investment management company’s stock valued at $6,305,000 after purchasing an additional 4,653 shares during the period. AJO LP lifted its stake in shares of THL Credit by 8.2% in the 1st quarter. AJO LP now owns 355,892 shares of the investment management company’s stock valued at $2,335,000 after purchasing an additional 26,899 shares during the period. Two Sigma Investments LP lifted its stake in shares of THL Credit by 33.4% in the 4th quarter. Two Sigma Investments LP now owns 227,169 shares of the investment management company’s stock valued at $1,381,000 after purchasing an additional 56,898 shares during the period. Finally, Two Sigma Advisers LP lifted its stake in shares of THL Credit by 27.2% in the 4th quarter. Two Sigma Advisers LP now owns 213,342 shares of the investment management company’s stock valued at $1,297,000 after purchasing an additional 45,600 shares during the period. Institutional investors and hedge funds own 45.84% of the company’s stock.
About THL Credit
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.
Further Reading: Return on Investment (ROI)
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