Garrison Capital Inc (GARS) Rating Reiterated by National Securities
Garrison Capital Inc (NASDAQ:GARS)‘s stock had its “neutral” rating reissued by analysts at National Securities in a report released on Monday. They presently have a $11.00 price target on the investment management company’s stock. National Securities’ price objective points to a potential upside of 22.49% from the stock’s current price.
The analysts wrote, “3Q16 Recap: Garrison Capital Inc. (GARS) reported adjusted NII/share of $0.29 versus consensus estimates of $0.37 and our estimate of $0.33. The company refinanced its securitization which caused $3.4 million of one-time expenses (which are added back to arrive at the $0.29/share of adjusted NII). The company realized a loss of $11.2 million pertaining to previous non-accrual BFN Operations and the only non-accrual remaining is Forest Park Medical Center at San Antonio which was marked down further during the quarter. Management commented on the earnings call that they had operationally split the underwriting and origination personnel and will focus on more sponsor originations going forward, as well as potentially larger size club deals. This would have the impact of lowering yield but would decrease the likelihood of default. We think earnings will likely be elevated in 4Q16 and 1Q17 purely as a function of the company not earning any incentive fee but thereafter we expect adjusted NII/share to decrease significantly from prior years. GARS lowered its base fee to 1.50% of gross assets from 1.75% previously and lowered the hurdles on its incentive fee. We are revising our 2016 adjusted NII/share estimate from $1.24 to $1.20 and our 2017 adjusted NII/share estimate from $1.42 to $1.21. Our $11 price target implies an estimated 2017 P/NII of 9.1x, dividend yield of 10.2%, and P/NAV of 0.85x compared to the BDC sector averages of 9.6x, 9.8%, and 0.87x, respectively. “
A number of other analysts have also weighed in on GARS. Zacks Investment Research lowered Garrison Capital from a “hold” rating to a “sell” rating in a research note on Wednesday, October 12th. Robert W. Baird lowered Garrison Capital from an “outperform” rating to a “neutral” rating and lowered their target price for the company from $11.00 to $10.00 in a research note on Friday, August 12th. Finally, JMP Securities restated a “hold” rating on shares of Garrison Capital in a research note on Monday, August 15th. One analyst has rated the stock with a sell rating, six have given a hold rating, two have issued a buy rating and one has given a strong buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus target price of $12.75.
Shares of Garrison Capital (NASDAQ:GARS) opened at 8.98 on Monday. Garrison Capital has a one year low of $8.75 and a one year high of $14.21. The firm has a 50-day moving average of $9.74 and a 200-day moving average of $10.17.
The business also recently announced a quarterly dividend, which will be paid on Friday, December 23rd. Shareholders of record on Friday, December 9th will be issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a yield of 12.47%. The ex-dividend date is Wednesday, December 7th.
A number of institutional investors have recently modified their holdings of GARS. Clear Harbor Asset Management LLC bought a new position in shares of Garrison Capital during the first quarter worth about $128,000. Janney Montgomery Scott LLC boosted its position in shares of Garrison Capital by 115.0% in the second quarter. Janney Montgomery Scott LLC now owns 97,600 shares of the investment management company’s stock worth $1,076,000 after buying an additional 52,200 shares during the period. Oppenheimer & Co. Inc. boosted its position in shares of Garrison Capital by 69.6% in the second quarter. Oppenheimer & Co. Inc. now owns 37,870 shares of the investment management company’s stock worth $382,000 after buying an additional 15,540 shares during the period. JPMorgan Chase & Co. boosted its position in shares of Garrison Capital by 2,855.3% in the second quarter. JPMorgan Chase & Co. now owns 26,154 shares of the investment management company’s stock worth $264,000 after buying an additional 25,269 shares during the period. Finally, BlackRock Group LTD boosted its position in shares of Garrison Capital by 14.6% in the second quarter. BlackRock Group LTD now owns 73,770 shares of the investment management company’s stock worth $744,000 after buying an additional 9,385 shares during the period.
Garrison Capital Company Profile
Garrison Capital Inc is a 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.
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