FS Investment Corporation (FSIC) Receives Neutral Rating from National Securities
National Securities reiterated their neutral rating on shares of FS Investment Corporation (NYSE:FSIC) in a report released on Monday morning. They currently have a $10.00 price objective on the financial services provider’s stock.
“• FSIC posted adjusted NII/share of $0.21 for 3Q17, beating our estimate of $0.19 and matching the quarterly dividend. Interest income came in stronger than we had anticipated, although we expect this was buoyed by accelerated accretion of OID (original issue discount) pertaining to prepayment activity.
• NAV/share improved Q/Q to $9.43 from $9.30 largely as a result of unrealized appreciation of $54.2 million on investments during the quarter, partially offset by $18.2 million of realized losses. Asset quality remains sound at FSIC with non-accruals at cost decreasing to $18.1 million or 0.5% of the portfolio from $25.3 million or 0.7% Q/Q. Paw Luxco II came off non-accrual but Brock Holdings III and Global A&T Electronics were both added to non-accrual status during the quarter.
• The portfolio at cost decreased modestly during the quarter to $3.77 billion from $3.82 billion in 2Q17 as sales and repayments of $225.5 million outpaced the $182.4 million of originations during the quarter. We think that FSIC has the origination platform and capacity to increase the portfolio steadily from 4Q17 – 4Q18 although we note that net portfolio growth is likely more contingent upon prepayment activity slowing down than originations picking up meaningfully.
• We are revising our 2017 adjusted NII/share estimate to $0.85 from $0.82 and our 2018 NII/share estimate to $0.87 from $0.85.,” National Securities’ analyst commented.
FSIC has been the topic of a number of other research reports. ValuEngine upgraded shares of FS Investment Corporation from a hold rating to a buy rating in a research report on Monday, October 2nd. Keefe, Bruyette & Woods set a $9.00 price objective on shares of FS Investment Corporation and gave the company a hold rating in a research report on Thursday, October 5th. Zacks Investment Research upgraded shares of FS Investment Corporation from a hold rating to a buy rating and set a $10.00 price objective on the stock in a research report on Wednesday, August 2nd. Finally, BidaskClub cut shares of FS Investment Corporation from a sell rating to a strong sell rating in a research report on Wednesday, October 18th. One analyst has rated the stock with a sell rating, four have given a hold rating and two have given a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average price target of $9.56.
FS Investment Corporation (FSIC) remained flat at $$8.20 during mid-day trading on Monday. 832,900 shares of the company’s stock were exchanged, compared to its average volume of 1,089,129. The company has a debt-to-equity ratio of 0.74, a current ratio of 2.12 and a quick ratio of 2.12. FS Investment Corporation has a 52-week low of $7.65 and a 52-week high of $10.80. The firm has a market cap of $2,010.00, a P/E ratio of 9.65, a PEG ratio of 3.40 and a beta of 0.94.
FS Investment Corporation (NYSE:FSIC) last posted its quarterly earnings data on Thursday, November 9th. The financial services provider reported $0.21 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.19 by $0.02. FS Investment Corporation had a net margin of 52.49% and a return on equity of 8.97%. The business had revenue of $103.69 million for the quarter, compared to analysts’ expectations of $97.03 million. sell-side analysts expect that FS Investment Corporation will post 0.8 earnings per share for the current year.
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The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 3rd. Stockholders of record on Wednesday, December 20th will be paid a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a dividend yield of 9.27%. The ex-dividend date is Tuesday, December 19th. FS Investment Corporation’s dividend payout ratio is currently 100.00%.
Several institutional investors and hedge funds have recently modified their holdings of the company. Sumitomo Mitsui Trust Holdings Inc. boosted its stake in shares of FS Investment Corporation by 2.2% during the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 16,493 shares of the financial services provider’s stock valued at $151,000 after purchasing an additional 362 shares during the period. McAdam LLC boosted its stake in shares of FS Investment Corporation by 1.5% during the second quarter. McAdam LLC now owns 26,358 shares of the financial services provider’s stock valued at $241,000 after purchasing an additional 389 shares during the period. Advisory Services Network LLC boosted its stake in shares of FS Investment Corporation by 3.6% during the second quarter. Advisory Services Network LLC now owns 11,577 shares of the financial services provider’s stock valued at $106,000 after purchasing an additional 400 shares during the period. V Wealth Management LLC boosted its stake in shares of FS Investment Corporation by 3.2% during the second quarter. V Wealth Management LLC now owns 33,095 shares of the financial services provider’s stock valued at $303,000 after purchasing an additional 1,037 shares during the period. Finally, Capital Investment Advisory Services LLC boosted its stake in shares of FS Investment Corporation by 5.1% during the second quarter. Capital Investment Advisory Services LLC now owns 25,767 shares of the financial services provider’s stock valued at $236,000 after purchasing an additional 1,250 shares during the period. 33.14% of the stock is owned by hedge funds and other institutional investors.
About FS Investment Corporation
FS Investment Corporation is an externally managed, non-diversified, closed-end management investment company. The Company’s investment objectives are to generate current income and long-term capital appreciation. Its portfolio consists primarily of investments in senior secured loans and second lien secured loans of the private United States middle market companies and subordinated loans of the private United States companies.
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