Blackrock Tcp Capital (NASDAQ:TCPC – Get Free Report) announced its earnings results on Thursday. The investment management company reported $0.22 earnings per share for the quarter, topping analysts’ consensus estimates of $0.20 by $0.02, Zacks reports. Blackrock Tcp Capital had a negative net margin of 61.27% and a positive return on equity of 13.40%. The company had revenue of $40.02 million during the quarter, compared to the consensus estimate of $38.36 million.
Here are the key takeaways from Blackrock Tcp Capital’s conference call:
- The company completed a $523 million portfolio sale to a Pantheon-sponsored continuation vehicle, priced at 95% of year-end 2025 fair value, which is expected to reduce NAV by approximately 10.4% ($0.68 per share), including transaction expenses.
- Proceeds and portfolio repayments materially strengthened the balance sheet, reducing pro forma net leverage to approximately 0.4x, unfunded commitments below $40 million, and providing roughly $395 million of liquidity and more than $300 million of potential investment capacity.
- The board began a strategic review with Keefe, Bruyette & Woods that may consider reinvesting, share repurchases, returning capital, strategic combinations, or other corporate transactions; management provided no timetable or preferred outcome.
- Second-quarter NAV declined 2.1% to $6.58 per share, driven by markdowns and realized losses involving Pluralsight, PVHC, Zilliant, AutoAlert, and Become, although net investment income was $0.21 per share on an adjusted basis versus a $0.17 dividend.
- Portfolio credit trends improved, with non-accruals declining to 1.6% of fair value from 2.8% in the prior quarter, while $111.6 million of repayments in Q2 and additional post-quarter-end repayments—including expected full repayment of the $69 million Domo investment—reduced concentration and supported portfolio repositioning.
Blackrock Tcp Capital Trading Up 5.4%
Shares of TCPC traded up $0.21 on Friday, reaching $4.11. 1,829,151 shares of the company’s stock were exchanged, compared to its average volume of 737,761. The business has a 50 day moving average price of $3.42 and a two-hundred day moving average price of $3.97. Blackrock Tcp Capital has a 12 month low of $3.08 and a 12 month high of $7.28. The stock has a market capitalization of $344.83 million, a P/E ratio of -3.21 and a beta of 0.94. The company has a current ratio of 21.44, a quick ratio of 21.44 and a debt-to-equity ratio of 1.64.
Blackrock Tcp Capital Announces Dividend
Analyst Ratings Changes
TCPC has been the subject of several research analyst reports. Weiss Ratings restated a “sell (d)” rating on shares of Blackrock Tcp Capital in a research report on Tuesday, June 2nd. Wall Street Zen raised Blackrock Tcp Capital from a “sell” rating to a “hold” rating in a research note on Saturday, May 16th. Finally, Keefe, Bruyette & Woods upgraded Blackrock Tcp Capital from an “underperform” rating to a “market perform” rating in a research report on Friday. Two equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Blackrock Tcp Capital currently has a consensus rating of “Reduce” and a consensus target price of $3.50.
Get Our Latest Stock Analysis on TCPC
Blackrock Tcp Capital News Roundup
Here are the key news stories impacting Blackrock Tcp Capital this week:
- Positive Sentiment: TCPC reported second-quarter earnings of $0.22 per share, above the $0.20 analyst consensus, while revenue of $40.02 million also exceeded estimates of $38.36 million. The earnings beat provides a near-term fundamental catalyst. BlackRock TCP Beats Q2 Earnings and Revenue Estimates
- Positive Sentiment: The company announced a strategic sale of approximately $523 million of investments, reportedly representing nearly half of its loan portfolio. Management said the transaction should materially strengthen liquidity and reduce leverage, with pro forma net leverage targeted at roughly 0.4 times. BlackRock TCP Announces Second Quarter Results and Portfolio Sale
- Positive Sentiment: Keefe, Bruyette & Woods upgraded TCPC from “underperform” to “market perform,” reducing a source of analyst pressure and signaling a more balanced view of the stock’s outlook. TickerReport
- Positive Sentiment: TCPC declared a quarterly dividend of $0.17 per share, payable September 30 to shareholders of record September 16. The distribution equates to an annualized yield of approximately 16.6%, which may appeal to income-focused investors.
- Neutral Sentiment: The portfolio sale and strategic review could improve the balance sheet, but selling a large portion of the loan portfolio may reduce future investment income and leaves the company’s post-transaction strategy to be evaluated.
- Negative Sentiment: Although TCPC beat estimates, quarterly earnings of $0.22 per share were below $0.32 per share a year earlier, and the company continues to report a negative net margin.
Institutional Trading of Blackrock Tcp Capital
Institutional investors have recently bought and sold shares of the business. Invesco Ltd. lifted its stake in shares of Blackrock Tcp Capital by 22.0% in the 4th quarter. Invesco Ltd. now owns 2,375,549 shares of the investment management company’s stock valued at $12,994,000 after purchasing an additional 428,201 shares during the period. Two Sigma Investments LP grew its stake in shares of Blackrock Tcp Capital by 22.8% during the third quarter. Two Sigma Investments LP now owns 874,972 shares of the investment management company’s stock worth $5,425,000 after purchasing an additional 162,651 shares during the period. North Ground Capital increased its holdings in Blackrock Tcp Capital by 57.6% in the fourth quarter. North Ground Capital now owns 787,946 shares of the investment management company’s stock valued at $4,310,000 after purchasing an additional 287,946 shares during the last quarter. Marshall Wace LLP bought a new stake in Blackrock Tcp Capital in the second quarter valued at about $4,045,000. Finally, BI Asset Management Fondsmaeglerselskab A S lifted its stake in Blackrock Tcp Capital by 6.1% in the second quarter. BI Asset Management Fondsmaeglerselskab A S now owns 417,991 shares of the investment management company’s stock valued at $3,219,000 after buying an additional 23,875 shares during the period.
Blackrock Tcp Capital Company Profile
BlackRock TCP Capital Corp is a publicly traded business development company (BDC) listed on the NASDAQ under the ticker TCPC. Externally managed by BlackRock, the firm provides customized financing solutions to U.S. middle-market companies, with a focus on sponsor-backed transactions. Its core strategy centers on delivering current income and capital appreciation through a diversified portfolio of debt and equity investments across a variety of sectors, including consumer products, healthcare, business services and industrials.
Since its initial public offering in 2013, BlackRock TCP Capital has partnered with private equity sponsors to underwrite and structure senior secured first-lien loans, second-lien loans, mezzanine debt and select equity co-investments.
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