Solar Capital (SLRC) Cut to Buy at BidaskClub

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BidaskClub downgraded shares of Solar Capital (NASDAQ:SLRC) from a strong-buy rating to a buy rating in a report published on Thursday.

Several other equities research analysts have also commented on SLRC. Zacks Investment Research lowered shares of Solar Capital from a hold rating to a sell rating in a research note on Thursday, December 20th. Wells Fargo & Co raised their price objective on shares of Solar Capital from $18.00 to $19.00 and gave the company a market perform rating in a research note on Tuesday, February 26th. National Securities reiterated a buy rating and set a $25.00 price objective on shares of Solar Capital in a research note on Monday, February 25th. Finally, Oppenheimer assumed coverage on shares of Solar Capital in a research note on Wednesday, November 28th. They set a buy rating and a $23.00 price objective on the stock. One analyst has rated the stock with a sell rating, two have given a hold rating and three have given a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and an average target price of $22.50.

Shares of NASDAQ:SLRC opened at $21.75 on Thursday. Solar Capital has a 52 week low of $18.45 and a 52 week high of $22.00. The company has a market capitalization of $919.18 million, a price-to-earnings ratio of 12.29, a PEG ratio of 2.41 and a beta of 0.74. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.52.

Solar Capital (NASDAQ:SLRC) last announced its quarterly earnings results on Thursday, February 21st. The financial services provider reported $0.44 EPS for the quarter, beating the consensus estimate of $0.43 by $0.01. Solar Capital had a net margin of 43.56% and a return on equity of 8.10%. The company had revenue of $38.24 million for the quarter, compared to analyst estimates of $37.46 million. Sell-side analysts predict that Solar Capital will post 1.78 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 3rd. Investors of record on Thursday, March 21st will be paid a dividend of $0.41 per share. The ex-dividend date of this dividend is Wednesday, March 20th. This represents a $1.64 dividend on an annualized basis and a dividend yield of 7.54%. Solar Capital’s dividend payout ratio is presently 92.66%.

In related news, insider Michael S. Gross acquired 7,777 shares of the stock in a transaction that occurred on Monday, March 4th. The shares were acquired at an average price of $21.54 per share, for a total transaction of $167,516.58. Following the completion of the purchase, the insider now directly owns 165,894 shares of the company’s stock, valued at $3,573,356.76. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 5.90% of the stock is owned by company insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Northern Trust Corp increased its stake in shares of Solar Capital by 6.3% during the fourth quarter. Northern Trust Corp now owns 10,566 shares of the financial services provider’s stock valued at $202,000 after acquiring an additional 624 shares during the period. Mraz Amerine & Associates Inc. increased its stake in shares of Solar Capital by 9.3% during the fourth quarter. Mraz Amerine & Associates Inc. now owns 11,763 shares of the financial services provider’s stock valued at $226,000 after acquiring an additional 1,000 shares during the period. Bank of America Corp DE grew its position in Solar Capital by 5.4% in the fourth quarter. Bank of America Corp DE now owns 21,406 shares of the financial services provider’s stock worth $411,000 after buying an additional 1,096 shares during the last quarter. Great West Life Assurance Co. Can grew its position in Solar Capital by 13.3% in the fourth quarter. Great West Life Assurance Co. Can now owns 11,516 shares of the financial services provider’s stock worth $214,000 after buying an additional 1,355 shares during the last quarter. Finally, Founders Capital Management acquired a new position in Solar Capital in the fourth quarter worth approximately $29,000. Institutional investors and hedge funds own 58.04% of the company’s stock.

About Solar Capital

Solar Capital Ltd. is a business development company specializing in secured debt (first lien unitranche and second lien), subordinated (unsecured) debt, minority equity, and strategic income-oriented control equity investments in leveraged middle market companies. The fund invests in aerospace and defense; air freight & logistics; asset management; automotive; banking; beverage, food and tobacco; building products; buildings and real estate; broadcasting and entertainment; cargo transport; commercial services and supplies; communications equipment; chemicals, plastics and rubber; containers, packaging and glass; construction & engineering; diversified/conglomerate manufacturing; consumer Finance; distributors; diversified/conglomerate services; diversified financial services; diversified real estate sctivities; food products; Footwear; Education Services; diversified telecommunications services; electronics; farming and agriculture; finance; grocery; health care equipment and supplies; health care facilities; education and childcare; home and office furnishing, durable consumer products; hotels, motels, inns and gaming; insurance; restaurants, leisure, amusement, and entertainment; leisure equipment tolls and services, media, multiline retail, multi sector holdings; paper and forest products; personal products; professional services, research and consulting services, software; specialty retail; textiles apparel and luxury goods, thrifts and mortgage finance, trading companies and distributors, utilities, and wireless telecommunication services; industrial conglomerates; internet software and services, IT services, machinery; mining, steel, iron, and non precious metals; oil and gas; personal, food and miscellaneous services; printing and publishing; retail stores; telecommunications; textiles and leather; and utilities.

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