Rand Capital (NASDAQ:RAND) Posts Quarterly Earnings Results

Rand Capital (NASDAQ:RAND) announced its quarterly earnings data on Wednesday. The asset manager reported $0.18 EPS for the quarter, FiscalAI reports. Rand Capital had a negative net margin of 124.17% and a positive return on equity of 6.55%. The firm had revenue of $1.24 million during the quarter.

Here are the key takeaways from Rand Capital’s conference call:

• Balance sheet flexibility — ended Q1 with NAV $17.16/share, about $20.1M of available credit and only $0.5M drawn, plus a renewed $1.5M share repurchase authorization.
• Capital recycling and deployment — realized a ~$1.1M gain from the Seybert’s exit, deployed $5.1M in new/follow-on investments (including a $4.0M AME Holdco deal at 13% plus equity), supporting future income potential.
• Earnings pressure — total investment income fell 38% y/y to $1.2M and net investment income was just $0.18/share, with the portfolio yield declining to 9.43% from 11.3% due mainly to repayments and non-accruals.
• Credit stress in specific holdings — FSS and MRES remain on non-accrual (MRES is in a technical bankruptcy); RAND is allocating follow-on capital and pursuing workouts, which could weigh on near-term returns.

Rand Capital Stock Up 1.8%

Shares of RAND traded up $0.19 during midday trading on Wednesday, reaching $10.99. 3,315 shares of the stock were exchanged, compared to its average volume of 2,622. Rand Capital has a twelve month low of $10.05 and a twelve month high of $20.00. The company has a market cap of $32.64 million, a P/E ratio of -4.09 and a beta of 0.09. The stock’s 50 day simple moving average is $11.38 and its 200 day simple moving average is $12.28.

Rand Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 27th will be issued a dividend of $0.29 per share. The ex-dividend date of this dividend is Wednesday, May 27th. This represents a $1.16 dividend on an annualized basis and a dividend yield of 10.6%. Rand Capital’s dividend payout ratio (DPR) is currently -43.12%.

Analyst Ratings Changes

Separately, Weiss Ratings reiterated a “sell (d+)” rating on shares of Rand Capital in a research note on Thursday, January 22nd. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the company has a consensus rating of “Sell”.

Institutional Investors Weigh In On Rand Capital

An institutional investor recently bought a new position in Rand Capital stock. Ritholtz Wealth Management bought a new position in shares of Rand Capital Corporation (NASDAQ:RAND) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 11,089 shares of the asset manager’s stock, valued at approximately $126,000. Ritholtz Wealth Management owned approximately 0.37% of Rand Capital as of its most recent filing with the Securities & Exchange Commission.

Rand Capital Company Profile

Rand Capital Corporation is a publicly traded business development company (BDC) focused on providing financing solutions to growing businesses. Established in 1999 and headquartered near Buffalo, New York, Rand Capital seeks to partner with small to mid-size companies across a variety of industries. By leveraging its balance sheet, the firm aims to deliver flexible debt and equity investments designed to support expansion, acquisitions, working capital needs and other strategic initiatives.

The company’s financing activities span senior secured loans, subordinated debt, equity co-investments and royalty or revenue-based financing.