Garrison Capital (NASDAQ:GARS) Upgraded by Zacks Investment Research to Buy

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Zacks Investment Research upgraded shares of Garrison Capital (NASDAQ:GARS) from a hold rating to a buy rating in a report published on Thursday, Zacks.com reports. Zacks Investment Research currently has $7.75 price target on the investment management company’s stock.

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. “

A number of other analysts have also recently commented on the company. National Securities cut Garrison Capital from a buy rating to a neutral rating and cut their price objective for the company from $10.00 to $8.00 in a research report on Tuesday, May 14th. TheStreet lowered Garrison Capital from a c rating to a d+ rating in a research note on Monday, April 22nd. Finally, ValuEngine lowered Garrison Capital from a hold rating to a sell rating in a research note on Tuesday, July 2nd. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and two have assigned a buy rating to the company’s stock. The company currently has an average rating of Hold and an average price target of $9.25.

Shares of GARS stock opened at $7.05 on Thursday. The stock has a 50 day moving average of $6.99 and a 200 day moving average of $7.14. The company has a current ratio of 3.18, a quick ratio of 3.83 and a debt-to-equity ratio of 2.10. The stock has a market cap of $111.86 million, a P/E ratio of 6.98 and a beta of 0.58. Garrison Capital has a twelve month low of $6.03 and a twelve month high of $8.84.

Garrison Capital (NASDAQ:GARS) last announced its quarterly earnings results on Friday, August 9th. The investment management company reported $0.22 earnings per share for the quarter, meeting the consensus estimate of $0.22. The company had revenue of $10.70 million during the quarter, compared to analysts’ expectations of $10.76 million. Garrison Capital had a positive return on equity of 7.98% and a negative net margin of 6.63%. On average, research analysts predict that Garrison Capital will post 0.88 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 20th. Stockholders of record on Friday, September 6th will be paid a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 13.05%. The ex-dividend date is Thursday, September 5th. Garrison Capital’s dividend payout ratio (DPR) is 91.09%.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. increased its stake in Garrison Capital by 10.1% in the 2nd quarter. JPMorgan Chase & Co. now owns 26,075 shares of the investment management company’s stock valued at $180,000 after purchasing an additional 2,400 shares in the last quarter. FNY Investment Advisers LLC acquired a new position in Garrison Capital in the second quarter valued at $80,000. Squarepoint Ops LLC acquired a new position in Garrison Capital in the fourth quarter valued at $76,000. Oppenheimer & Co. Inc. boosted its holdings in Garrison Capital by 89.0% in the first quarter. Oppenheimer & Co. Inc. now owns 46,364 shares of the investment management company’s stock valued at $333,000 after acquiring an additional 21,838 shares during the last quarter. Finally, Clear Harbor Asset Management LLC raised its position in Garrison Capital by 39.5% in the second quarter. Clear Harbor Asset Management LLC now owns 129,014 shares of the investment management company’s stock valued at $890,000 after purchasing an additional 36,558 shares during the period. 28.31% of the stock is owned by hedge funds and other institutional investors.

Garrison Capital Company Profile

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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