Zacks Investment Research upgraded shares of Medley Capital Corp. (NYSE:MCC) from a strong sell rating to a hold rating in a report released on Wednesday.
According to Zacks, “Medley Capital Corporation is a closed-end, externally managed investment company. Medley Capital Corporation’s objective is to generate current income and capital appreciation by lending directly to privately-held small and middle market companies to help these companies fund acquisitions, growth or refinancing. Their portfolio will generally consist of first lien senior secured loans, and, to a lesser extent, second lien secured loans. In many of their investments, they will get warrants or other equity participation features which they believe will increase the total investment returns. “
A number of other equities research analysts have also recently weighed in on the stock. National Securities reissued a neutral rating and issued a $7.00 price target on shares of Medley Capital Corp. in a research report on Thursday, August 11th. Jefferies Group reissued a hold rating on shares of Medley Capital Corp. in a research report on Friday, August 12th. Finally, FBR & Co reissued a hold rating on shares of Medley Capital Corp. in a research report on Wednesday, August 10th. Seven investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. Medley Capital Corp. presently has an average rating of Hold and an average target price of $7.67.
Shares of Medley Capital Corp. (NYSE:MCC) opened at 7.65 on Wednesday. Medley Capital Corp. has a one year low of $5.26 and a one year high of $8.10. The company has a 50 day moving average price of $7.54 and a 200 day moving average price of $7.04.
Medley Capital Corp. (NYSE:MCC) last announced its quarterly earnings results on Tuesday, August 9th. The investment management company reported $0.26 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.26. Medley Capital Corp. had a negative net margin of 31.75% and a positive return on equity of 10.43%. The firm earned $28.41 million during the quarter, compared to analysts’ expectations of $30.15 million. During the same period in the previous year, the company earned $0.30 earnings per share. Medley Capital Corp.’s quarterly revenue was down 21.0% compared to the same quarter last year. On average, analysts predict that Medley Capital Corp. will post $0.96 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Friday, September 23rd. Investors of record on Wednesday, August 24th were issued a dividend of $0.22 per share. The ex-dividend date was Monday, August 22nd. This represents a $0.88 annualized dividend and a yield of 11.50%. Medley Capital Corp.’s dividend payout ratio is currently -122.22%.
In related news, CEO Brook Taube bought 100,000 shares of the stock in a transaction on Monday, August 22nd. The shares were bought at an average cost of $7.55 per share, for a total transaction of $755,000.00. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Seth Taube bought 115,100 shares of the stock in a transaction on Thursday, October 6th. The shares were bought at an average price of $7.60 per share, for a total transaction of $874,760.00. The disclosure for this purchase can be found here. Corporate insiders own 0.74% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. IFP Advisors Inc raised its stake in Medley Capital Corp. by 8.3% in the second quarter. IFP Advisors Inc now owns 16,559 shares of the investment management company’s stock valued at $111,000 after buying an additional 1,269 shares in the last quarter. PineBridge Investments L.P. raised its stake in Medley Capital Corp. by 37.6% in the second quarter. PineBridge Investments L.P. now owns 17,227 shares of the investment management company’s stock valued at $115,000 after buying an additional 4,711 shares in the last quarter. Citadel Advisors LLC acquired a new stake in Medley Capital Corp. during the second quarter valued at approximately $162,000. WFG Advisors LP raised its stake in Medley Capital Corp. by 2.9% in the second quarter. WFG Advisors LP now owns 43,268 shares of the investment management company’s stock valued at $290,000 after buying an additional 1,200 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd acquired a new stake in Medley Capital Corp. during the second quarter valued at approximately $291,000. Institutional investors own 28.30% of the company’s stock.
Medley Capital Corp. Company Profile
Medley Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate current income and capital appreciation by lending directly to privately held middle market companies, primarily through directly originated transactions to help these companies expand their business, refinance and make acquisitions.