Apollo Investment Corporation’s (AINV) “Neutral” Rating Reiterated at National Securities
National Securities reaffirmed their neutral rating on shares of Apollo Investment Corporation (NASDAQ:AINV) in a research note released on Tuesday morning. They currently have a $6.00 target price on the asset manager’s stock.
“• In fiscal 2Q18, Apollo posted NII/share of $0.16/share, matching both our estimate and consensus estimates. The company had strong originations during the quarter of $250.7 million contrasted with $333.4 million of dispositions for net contraction of $82.7 million. Given management had guided towards some lower balance sheet leverage in the short-term, we expect net portfolio contraction in fiscal 2H18 before we model steady growth and increased balance sheet leverage through fiscal 2019.
• Apollo continues to build out its core strategy, which as of 9/30/17 comprised 73% of the portfolio at fair value. Since the new strategy was announced last year, AINV has originated over a billion dollars into its core strategies, 38% of which was co-invested across the broader Apollo platform. As a reminder, the core strategies include traditional middle market sponsor loans, ABL (asset-based lending), life sciences lending, and lender finance.
• Despite the positive shift in the portfolio composition with regards to the largely uncorrelated core strategies, we note that AINV finished fiscal 2Q18 with 6.9% of the portfolio at fair value in oil and gas, with one of the three companies on non-accrual. Additionally, 8.2% of the portfolio at fair value was in renewables. We continue to think Apollo is not out of the woods yet and note that our $6 target is a very modest 10% discount to our fiscal 4Q19 NAV/share estimate of $6.67.
• We are revising our fiscal 2018 NII/share estimate to $0.63 from $0.65 and our fiscal 2019 NII/share estimate to $0.67 from $0.66. ,” the firm’s analyst commented.
Other equities analysts also recently issued research reports about the company. Compass Point raised Apollo Investment Corporation from a neutral rating to a buy rating in a research report on Friday, November 3rd. Jefferies Group LLC restated a buy rating and set a $7.00 price objective on shares of Apollo Investment Corporation in a report on Friday, July 14th. SunTrust Banks, Inc. restated a buy rating on shares of Apollo Investment Corporation in a report on Friday, November 3rd. Keefe, Bruyette & Woods restated a hold rating and set a $6.50 price objective on shares of Apollo Investment Corporation in a report on Thursday, August 31st. Finally, Zacks Investment Research upgraded Apollo Investment Corporation from a sell rating to a hold rating in a report on Wednesday, July 19th. Two research analysts have rated the stock with a sell rating, five have assigned a hold rating and four have assigned a buy rating to the stock. The company currently has a consensus rating of Hold and a consensus target price of $6.41.
Shares of Apollo Investment Corporation (AINV) traded down $0.05 during midday trading on Tuesday, reaching $6.06. The company’s stock had a trading volume of 729,200 shares, compared to its average volume of 885,579. The firm has a market capitalization of $1,334.68, a P/E ratio of 9.40, a PEG ratio of 1.96 and a beta of 0.93. The company has a current ratio of 0.61, a quick ratio of 0.64 and a debt-to-equity ratio of 0.59. Apollo Investment Corporation has a 1 year low of $5.69 and a 1 year high of $6.82.
Apollo Investment Corporation (NASDAQ:AINV) last announced its quarterly earnings results on Friday, November 3rd. The asset manager reported $0.16 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.16. The firm had revenue of $66.46 million for the quarter, compared to the consensus estimate of $67.75 million. Apollo Investment Corporation had a return on equity of 9.51% and a net margin of 29.87%. The business’s revenue was down 3.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.18 earnings per share. equities analysts forecast that Apollo Investment Corporation will post 0.63 EPS for the current fiscal year.
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The business also recently declared a quarterly dividend, which will be paid on Friday, January 5th. Investors of record on Thursday, December 21st will be paid a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 9.90%. The ex-dividend date is Wednesday, December 20th. Apollo Investment Corporation’s dividend payout ratio (DPR) is currently 166.67%.
Several hedge funds have recently modified their holdings of the stock. Rhumbline Advisers boosted its stake in shares of Apollo Investment Corporation by 0.3% in the second quarter. Rhumbline Advisers now owns 16,708 shares of the asset manager’s stock valued at $107,000 after buying an additional 58 shares during the period. Duncker Streett & Co. Inc. boosted its stake in shares of Apollo Investment Corporation by 0.3% in the second quarter. Duncker Streett & Co. Inc. now owns 64,433 shares of the asset manager’s stock valued at $412,000 after buying an additional 164 shares during the period. The Manufacturers Life Insurance Company boosted its stake in shares of Apollo Investment Corporation by 0.9% in the second quarter. The Manufacturers Life Insurance Company now owns 18,016 shares of the asset manager’s stock valued at $115,000 after buying an additional 168 shares during the period. Pinebridge Investments L.P. boosted its stake in shares of Apollo Investment Corporation by 0.7% in the second quarter. Pinebridge Investments L.P. now owns 63,452 shares of the asset manager’s stock valued at $405,000 after buying an additional 433 shares during the period. Finally, GAM Holding AG boosted its stake in shares of Apollo Investment Corporation by 2.7% in the second quarter. GAM Holding AG now owns 16,652 shares of the asset manager’s stock valued at $106,000 after buying an additional 441 shares during the period. Institutional investors and hedge funds own 45.76% of the company’s stock.
About Apollo Investment Corporation
Apollo Investment Corporation is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation. It invests primarily in various forms of debt investments, including secured and unsecured debt, loan investments and/or equity in private middle-market companies.
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