National Securities Cuts Triangle Capital Corporation (TCAP) Price Target to $11.00
Triangle Capital Corporation (NYSE:TCAP) had its target price decreased by National Securities from $16.00 to $11.00 in a research report report published on Monday. National Securities currently has a neutral rating on the credit services provider’s stock.
“• Triangle‘s NAV/share decreased by 10.9% Q/Q to $13.20 from $14.83, an astonishing drop that drove an annualized economic loss of 31.6% for 3Q17. We thought we were being conservative on 10/24/17 when, in the earnings preview, we forecasted NAV would close 9/30/17 at $14.21 and 2017 at $13.56 but it appears that we were overly optimistic in these assumptions.
• We also underestimated the dividend cut although it was refreshing to have the band aid pulled off. We had anticipated a reduction in the quarterly dividend to $0.36/share in 1Q18 but TCAP cut the dividend all the way to $0.30/share for 4Q17.
• There has been nothing short of a remarkable amount of “TCAP 1.0” (2014-2015 vintages) that have gone very bad very fast and we cannot help but expect many other pairs of shoes to drop given the current trajectory of asset quality. Additionally, as we have pointed out, the marks tend to get continually much more negative when an asset is placed on non-accrual status and we thus expect realized losses to outstrip reversals of unrealized depreciation and cause net losses to drive further NAV reductions.
• TCAP has enough headwinds in terms of the drag on earnings from troubled credits pulling down the overall portfolio yield, but as the company does more first lien and unitranche loans this will doubly pressure yield and any further uptick in credit quality could even put the $0.30/share quarterly dividend in jeopardy.
• While the company discussed the potential of strategic alternatives, such as joint venture (JV), merger, sale of loans, etc. we don’t think many of these are likely as any company capable of acquiring the company would likely not want to muddy up their balance sheet. Any assets the company is looking to sell would likely be those that could only be sold at a loss, and while a JV would work nicely for the unitranche book it would be too little too late, in our opinion.
• We are revising our 2017 NII/share estimate to $1.49 from $1.65 and our 2018 NII/share estimate to $1.27 from $1.60.,” the firm’s analyst wrote.
TCAP has been the topic of a number of other research reports. ValuEngine raised shares of Triangle Capital Corporation from a hold rating to a buy rating in a report on Tuesday, August 1st. Zacks Investment Research raised Triangle Capital Corporation from a sell rating to a hold rating in a report on Wednesday, October 11th. Robert W. Baird raised Triangle Capital Corporation from a neutral rating to an outperform rating and set a $16.00 price target on the stock in a report on Monday, August 28th. Keefe, Bruyette & Woods cut Triangle Capital Corporation from an outperform rating to a market perform rating and cut their price target for the company from $20.50 to $18.00 in a report on Thursday, August 3rd. Finally, BidaskClub cut Triangle Capital Corporation from a hold rating to a sell rating in a report on Sunday, July 16th. Four equities research analysts have rated the stock with a sell rating, four have given a hold rating and six have given a buy rating to the company’s stock. Triangle Capital Corporation currently has a consensus rating of Hold and an average price target of $16.57.
Triangle Capital Corporation (TCAP) opened at $9.69 on Monday. The company has a quick ratio of 56.98, a current ratio of 56.98 and a debt-to-equity ratio of 0.87. Triangle Capital Corporation has a twelve month low of $8.91 and a twelve month high of $20.35. The stock has a market cap of $465.00, a PE ratio of 6.05, a price-to-earnings-growth ratio of 1.25 and a beta of 0.91.
Triangle Capital Corporation (NYSE:TCAP) last issued its earnings results on Wednesday, November 1st. The credit services provider reported $0.36 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.41 by ($0.05). Triangle Capital Corporation had a positive return on equity of 10.67% and a negative net margin of 36.80%. The business had revenue of $29.88 million during the quarter, compared to the consensus estimate of $32.84 million. During the same period in the prior year, the business earned $0.41 EPS. The business’s revenue was up 9.0% on a year-over-year basis. equities analysts expect that Triangle Capital Corporation will post 1.56 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 20th. Investors of record on Wednesday, December 6th will be paid a dividend of $0.30 per share. The ex-dividend date of this dividend is Tuesday, December 5th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 12.38%. Triangle Capital Corporation’s dividend payout ratio is presently -202.24%.
Several hedge funds and other institutional investors have recently bought and sold shares of TCAP. JPMorgan Chase & Co. increased its stake in shares of Triangle Capital Corporation by 649.1% during the first quarter. JPMorgan Chase & Co. now owns 16,795 shares of the credit services provider’s stock valued at $321,000 after acquiring an additional 14,553 shares during the period. Legal & General Group Plc grew its position in Triangle Capital Corporation by 15.3% in the first quarter. Legal & General Group Plc now owns 98,176 shares of the credit services provider’s stock worth $1,873,000 after buying an additional 13,017 shares during the last quarter. Morgan Stanley grew its position in Triangle Capital Corporation by 3.3% in the first quarter. Morgan Stanley now owns 333,326 shares of the credit services provider’s stock worth $6,363,000 after buying an additional 10,678 shares during the last quarter. Bank of America Corp DE grew its position in Triangle Capital Corporation by 567.9% in the first quarter. Bank of America Corp DE now owns 169,483 shares of the credit services provider’s stock worth $3,236,000 after buying an additional 144,106 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its position in Triangle Capital Corporation by 154.0% in the first quarter. Goldman Sachs Group Inc. now owns 69,597 shares of the credit services provider’s stock worth $1,329,000 after buying an additional 42,192 shares during the last quarter. Institutional investors and hedge funds own 33.80% of the company’s stock.
About Triangle Capital Corporation
Triangle Capital Corporation is an internally managed, non-diversified closed-end management investment company. The Company is a specialty finance company that provides customized financing to lower middle market companies located primarily in the United States. The Company’s investment objective is to seek attractive returns by generating current income from its debt investments and capital appreciation from its equity-related investments.
Receive News & Ratings for Triangle Capital Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Triangle Capital Corporation and related companies with MarketBeat.com's FREE daily email newsletter.