Garrison Capital (GARS) Upgraded to Strong-Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Garrison Capital (NASDAQ:GARS) from a hold rating to a strong-buy rating in a report published on Wednesday. They currently have $9.50 price objective 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. “
Other analysts have also issued research reports about the company. Maxim Group reaffirmed a buy rating and issued a $11.00 price target on shares of Garrison Capital in a research note on Thursday, August 9th. National Securities boosted their price target on Garrison Capital from $10.00 to $11.00 and gave the company a buy rating in a research note on Monday, August 13th. Finally, ValuEngine lowered Garrison Capital from a hold rating to a sell rating in a research note on Tuesday, September 4th.
Garrison Capital (NASDAQ:GARS) last announced its quarterly earnings results on Tuesday, August 7th. The investment management company reported $0.27 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.28 by ($0.01). The company had revenue of $9.69 million during the quarter, compared to analyst estimates of $9.88 million. Garrison Capital had a net margin of 33.79% and a return on equity of 9.53%. Research analysts expect that Garrison Capital will post 1.11 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 21st. Shareholders of record on Friday, September 7th were given a $0.28 dividend. The ex-dividend date of this dividend was Thursday, September 6th. This represents a $1.12 annualized dividend and a yield of 13.91%. Garrison Capital’s payout ratio is 104.67%.
A number of institutional investors and hedge funds have recently modified their holdings of GARS. Macquarie Group Ltd. bought a new position in Garrison Capital in the 2nd quarter valued at $211,000. Blair William & Co. IL raised its position in Garrison Capital by 41.1% in the 1st quarter. Blair William & Co. IL now owns 28,500 shares of the investment management company’s stock valued at $231,000 after purchasing an additional 8,300 shares during the last quarter. Millennium Management LLC raised its position in Garrison Capital by 24.6% in the 1st quarter. Millennium Management LLC now owns 30,810 shares of the investment management company’s stock valued at $250,000 after purchasing an additional 6,075 shares during the last quarter. Acadian Asset Management LLC raised its position in Garrison Capital by 135.2% in the 2nd quarter. Acadian Asset Management LLC now owns 38,131 shares of the investment management company’s stock valued at $310,000 after purchasing an additional 21,920 shares during the last quarter. Finally, Advisors Asset Management Inc. raised its position in Garrison Capital by 44.9% in the 2nd quarter. Advisors Asset Management Inc. now owns 272,302 shares of the investment management company’s stock valued at $2,214,000 after purchasing an additional 84,361 shares during the last quarter. Hedge funds and other institutional investors own 25.49% of the company’s stock.
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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