THL Credit, Inc. (TCRD) Rating Reiterated by National Securities
THL Credit, Inc. (NASDAQ:TCRD)‘s stock had its “buy” rating reissued by National Securities in a research note issued to investors on Monday. They currently have a $12.00 price target on the investment management company’s stock. National Securities’ price objective points to a potential upside of 24.35% from the stock’s previous close.
The analysts wrote, “• TCRD reported NII/share of $0.31 versus our estimate of $0.28/share with the beat largely driven by the incentive fee coming in at $1.2 million compared to our estimate of $2.3 million. The incentive fee, subject to a total return hurdle, was not earned in full during the quarter as NAV/share declined Q/Q to $11.48 from $11.71.
• Non-accruals at amortized cost increased during the quarter to $46.3 million or 6.8% of the portfolio from $13.3 million or 1.9% the quarter prior. Washington Inventory Services was sold during the quarter and thus removed from non-accrual but CRS Reprocessing and Specialty Brands Holdings were added with a combined cost of $36.6 million.
• THL’s portfolio at fair value was comprised of 74.0% first lien loans and the Logan JV (joint venture) combined, up from 66.6% the quarter prior. We expect that this composition will continue to trend upwards as a percentage of total fair value and lead to fewer credit issues and thus more NAV stability going forward. While the first lien debt increasing will likely weigh on effective yields somewhat, the company can continue allocating capital to Logan (88% first lien as of 6/30/17) which had a 12.7% yield by cost as of 2Q17. Additionally, our expectation for fewer credit issues in 2018 also means less of a drag on overall portfolio yield.
• We are maintaining our 2017 NII/share estimate of $1.15 and are revising our 2018 NII/share estimate to $1.16 from $1.18.”
Several other equities research analysts have also weighed in on TCRD. Keefe, Bruyette & Woods reiterated a “hold” rating and issued a $10.50 target price on shares of THL Credit in a report on Tuesday, April 11th. TheStreet lowered shares of THL Credit from a “b-” rating to a “c” rating in a report on Monday, April 10th. Maxim Group restated a “buy” rating and set a $12.00 price objective on shares of THL Credit in a report on Friday, May 5th. Deutsche Bank AG dropped their price objective on shares of THL Credit from $10.75 to $10.50 and set a “buy” rating on the stock in a report on Monday, May 8th. Finally, Citigroup Inc. restated a “market perform” rating on shares of THL Credit in a report on Wednesday, May 10th. Six research analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. THL Credit currently has an average rating of “Hold” and an average price target of $10.92.
THL Credit (NASDAQ TCRD) opened at 9.65 on Monday. The firm has a 50 day moving average price of $9.97 and a 200 day moving average price of $10.03. THL Credit has a 12-month low of $8.75 and a 12-month high of $10.69.
THL Credit (NASDAQ:TCRD) last posted its earnings results on Thursday, August 3rd. The investment management company reported $0.31 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.27 by $0.04. The company had revenue of $20.28 million for the quarter, compared to analyst estimates of $20.35 million. THL Credit had a net margin of 29.81% and a return on equity of 10.22%. The business’s revenue for the quarter was down 1.0% compared to the same quarter last year. During the same period last year, the business posted $0.35 earnings per share. Analysts predict that THL Credit will post $1.13 earnings per share for the current fiscal year.
In other news, CEO Sam W. Tillinghast bought 5,000 shares of the company’s stock in a transaction dated Tuesday, June 6th. The stock was bought at an average cost of $10.01 per share, for a total transaction of $50,050.00. Following the transaction, the chief executive officer now owns 127,704 shares of the company’s stock, valued at $1,278,317.04. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders acquired a total of 6,925 shares of company stock valued at $69,056 in the last quarter. Corporate insiders own 0.79% of the company’s stock.
Several institutional investors have recently modified their holdings of the stock. Stifel Financial Corp purchased a new position in shares of THL Credit during the first quarter valued at approximately $130,000. Raymond James Financial Services Advisors Inc. boosted its position in shares of THL Credit by 19.1% in the first quarter. Raymond James Financial Services Advisors Inc. now owns 21,117 shares of the investment management company’s stock valued at $210,000 after buying an additional 3,388 shares during the last quarter. Oxford Asset Management purchased a new position in shares of THL Credit during the first quarter valued at approximately $110,000. Trexquant Investment LP boosted its position in shares of THL Credit by 178.6% in the first quarter. Trexquant Investment LP now owns 28,971 shares of the investment management company’s stock valued at $289,000 after buying an additional 18,571 shares during the last quarter. Finally, Nine Chapters Capital Management LLC purchased a new position in shares of THL Credit during the first quarter valued at approximately $176,000. Institutional investors own 48.65% of the company’s stock.
THL Credit Company Profile
THL Credit, Inc is an externally managed, non-diversified closed-end management investment 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 lower middle market companies.
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