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 equities research analysts also recently weighed in on the stock. National Securities downgraded shares of Garrison Capital from a buy rating to a neutral rating and decreased their price target for the company from $10.00 to $8.00 in a research note on Tuesday, May 14th. ValuEngine downgraded shares of Zumiez from a hold rating to a sell rating in a research report on Tuesday, July 2nd. Finally, TheStreet raised shares of Secureworks from a d+ rating to a c- rating in a research report on Monday, April 22nd. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and one has issued a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average target price of $9.33.
GARS traded up $0.01 during midday trading on Tuesday, hitting $7.01. The company had a trading volume of 2,953 shares, compared to its average volume of 21,777. Garrison Capital has a 52 week low of $6.03 and a 52 week high of $8.84. The company has a quick ratio of 3.83, a current ratio of 3.83 and a debt-to-equity ratio of 2.03. The stock has a market cap of $112.18 million, a P/E ratio of 6.94 and a beta of 0.59. The stock’s 50 day simple moving average is $6.95.
Garrison Capital (NASDAQ:GARS) last posted its quarterly earnings results on Tuesday, May 7th. The investment management company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.01). Garrison Capital had a negative net margin of 3.06% and a positive return on equity of 8.29%. The company had revenue of $10.23 million during the quarter, compared to the consensus estimate of $10.75 million. Sell-side analysts forecast that Garrison Capital will post 0.88 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Friday, June 21st. Investors of record on Friday, June 7th were issued a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a yield of 13.12%. The ex-dividend date was Thursday, June 6th. Garrison Capital’s dividend payout ratio (DPR) is presently 91.09%.
A hedge fund recently bought a new stake in Garrison Capital stock. Squarepoint Ops LLC purchased a new stake in shares of Garrison Capital Inc (NASDAQ:GARS) in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor purchased 11,836 shares of the investment management company’s stock, valued at approximately $76,000. Squarepoint Ops LLC owned 0.07% of Garrison Capital as of its most recent SEC filing. Institutional investors and hedge funds own 25.61% 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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