National Securities Reaffirms Neutral Rating for Ticc Capital Corp. (TICC)
National Securities reaffirmed their neutral rating on shares of Ticc Capital Corp. (NASDAQ:TICC) in a report released on Thursday morning. The brokerage currently has a $6.00 price objective on the investment management company’s stock.
“3Q16 Recap: TICC Capital Corp. (TICC) reported $0.30/share of core NII versus our estimate of $0.31. Unrealized appreciation of $42.3 million during the quarter caused NAV/share to increase 8.3% Q/Q to $7.08 from $6.54. TICC paid down $35.6 million of its class A-1 notes (securitization) bringing D/E (debt-to-equity) down to 0.86x from 1.04x in 2Q16. The company continued its rotation out of broadly syndicated loans into club loans with higher yields with repayments and sales of $79.0 million during 3Q16 and $156.0 million year-to-date (YTD). The effective yield on non-affiliated debt investments has increased by 116 bps since 1Q16. While narrowing credit spreads have been a major tailwind for TICC in 2016, in 2015 they caused a 26% decrease in NAV/share due to mark-to-market accounting pertaining to the CLO equity positions. The market has shunned the use of CLO equity within a BDC structure, with standalone CLO entities receiving much higher valuations than BDCs who hold the asset class. We think that TICC will remain discounted to NAV/share considerably until it exits CLO equity entirely. We are maintaining our 2016 core NII/share estimate $1.45 and revising our 2017 core NII/share estimate from $1.40 to $1.45. We are reiterating our NEUTRAL rating and $6 price target. Our $6 implies an estimated 2017 Price/Net Investment Income (P/ NII) of 4.1x, dividend yield of 19.3%, and Price/Net Asset Value (P/NAV) of 0.94x compared to the BDC sector averages of 9.0x, 10.1%, and 0.85x, respectively.,” National Securities’ analyst wrote.
Separately, Zacks Investment Research lowered shares of Ticc Capital Corp. from a hold rating to a sell rating in a research report on Tuesday, October 11th.
Shares of Ticc Capital Corp. (NASDAQ:TICC) opened at 5.92 on Thursday. The stock’s 50 day moving average price is $5.75 and its 200-day moving average price is $5.68. The stock has a market cap of $304.76 million, a price-to-earnings ratio of 46.61 and a beta of 0.48. Ticc Capital Corp. has a 52-week low of $4.16 and a 52-week high of $7.02.
Ticc Capital Corp. (NASDAQ:TICC) last issued its quarterly earnings data on Thursday, November 3rd. The investment management company reported $0.11 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.13 by $0.02. Ticc Capital Corp. had a return on equity of 9.35% and a net margin of 9.84%. The business had revenue of $18.10 million for the quarter, compared to analysts’ expectations of $16.13 million. During the same period last year, the business earned $0.18 earnings per share. The company’s revenue for the quarter was down 21.7% on a year-over-year basis. On average, analysts predict that Ticc Capital Corp. will post $0.47 earnings per share for the current fiscal year.
Several large investors have recently added to or reduced their stakes in the company. UBS Group AG increased its stake in Ticc Capital Corp. by 1.9% in the third quarter. UBS Group AG now owns 918,513 shares of the investment management company’s stock valued at $5,345,000 after buying an additional 16,825 shares during the last quarter. Two Sigma Advisers LP increased its stake in Ticc Capital Corp. by 73.0% in the third quarter. Two Sigma Advisers LP now owns 247,866 shares of the investment management company’s stock valued at $1,443,000 after buying an additional 104,589 shares during the last quarter. Morgan Stanley increased its stake in Ticc Capital Corp. by 11.6% in the third quarter. Morgan Stanley now owns 354,479 shares of the investment management company’s stock valued at $2,063,000 after buying an additional 36,760 shares during the last quarter. Acrospire Investment Management LLC increased its stake in Ticc Capital Corp. by 151.5% in the third quarter. Acrospire Investment Management LLC now owns 47,583 shares of the investment management company’s stock valued at $277,000 after buying an additional 28,663 shares during the last quarter. Finally, Geneva Advisors LLC increased its stake in Ticc Capital Corp. by 4.5% in the third quarter. Geneva Advisors LLC now owns 76,498 shares of the investment management company’s stock valued at $445,000 after buying an additional 3,290 shares during the last quarter. 34.63% of the stock is owned by institutional investors.
Ticc Capital Corp. Company Profile
TICC Capital Corp. (TICC) is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize its portfolio’s total return. The Company’s primary focus is to seek current income by investing primarily in corporate debt securities. Its debt investments include bilateral loans (loans where the Company holds the entirety of a particular loan) and syndicated loans (loans where multiple investors hold portions of that loan).
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