Weekly Research Analysts’ Ratings Updates for TICC Capital Corp. (TICC)
A number of research firms have changed their ratings and price targets for TICC Capital Corp. (NASDAQ: TICC):
- 11/9/2017 – TICC Capital Corp. was upgraded by analysts at ValuEngine from a “hold” rating to a “buy” rating.
- 11/8/2017 – TICC Capital Corp. was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “TICC Capital Corp. is a business development company primarily engaged in providing capital to technology-related companies. TICC concentrates its investments in companies having annual revenues of less than two hundred million dollar and/or a market capitalization or enterprise value of less than three hundred million dollar, with a focus on businesses. “
- 11/6/2017 – TICC Capital Corp. was upgraded by analysts at National Securities from a “sell” rating to a “neutral” rating. They now have a $5.00 price target on the stock, down previously from $6.00. They wrote, “• TICC posted core NII/share of $0.13 for 3Q17, dramatically lower than our estimate of $0.21. CLO equity estimated additional taxable income, or effectively excess cash flow from CLO equity over what is recognized under GAAP and treated as a reduction to amortized cost, collapsed to $47,000 for 3Q17 from $1.7 million Q/Q. We note that we had estimated additional taxable income of $2.7 million for 3Q17, but yields on CLO equity at cost collapsed by 970 bps Q/Q to 15.9%.
• Management attributed the collapse in cash yields to a combination of spread compression and one-time refinancing-related expenses. When we asked how big of a contributor the latter was, management indicated it was significant but we didn’t get a quantitative break-down. Nonetheless, we expect the refinances completed during the quarter will cause positive effective yield recalibrations for 4Q17 and expect both GAAP CLO equity income and estimated additional taxable income to improve Q/Q.
• We model the quarterly dividend to be cut substantially in 1Q18 to $0.12/share from $0.20/share. We do not think TICC can sustainably continue to pay out more than it is earning on a GAAP NII basis as it will only weigh on NAV. This was a point of contention we had with management on the earnings call, whereupon management was trying to explain this wasn’t the case because NAV had been so strong. However, we note that NAV increases were largely driven by tightening credit spreads and positive fair value impact of this on CLO equity, which has been the primary driver of NAV increases. Since 1Q16, the NAV trough of the past several years, distributions in excess of NII increased from $41.1 million to $48.7 million as 9/30/17.
• We are revising our core NII/share estimate for 2017 to $0.78 from to $0.96 and our 2018 core NII/share estimate to $0.95 from $1.06.”
- 11/6/2017 – TICC Capital Corp. was upgraded by analysts at Ladenburg Thalmann Financial Services from a “neutral” rating to a “buy” rating.
- 11/2/2017 – TICC Capital Corp. was downgraded by analysts at ValuEngine from a “buy” rating to a “hold” rating.
TICC Capital Corp. (NASDAQ:TICC) opened at $5.96 on Tuesday. The stock has a market cap of $310.94, a P/E ratio of 10.60, a P/E/G ratio of 2.12 and a beta of 0.66. TICC Capital Corp. has a 12-month low of $5.17 and a 12-month high of $8.19. The company has a current ratio of 19.74, a quick ratio of 19.74 and a debt-to-equity ratio of 0.41.
TICC Capital Corp. (NASDAQ:TICC) last released its quarterly earnings data on Thursday, November 2nd. The investment management company reported $0.13 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.16 by ($0.03). The company had revenue of $14.50 million for the quarter, compared to analyst estimates of $15.97 million. TICC Capital Corp. had a return on equity of 7.64% and a net margin of 94.98%. TICC Capital Corp.’s revenue for the quarter was down 19.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.30 earnings per share. analysts anticipate that TICC Capital Corp. will post 0.57 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 29th. Investors of record on Friday, December 15th will be given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 13.42%. The ex-dividend date is Thursday, December 14th. TICC Capital Corp.’s dividend payout ratio is 68.38%.
In other TICC Capital Corp. news, CEO Jonathan H. Cohen bought 53,316 shares of TICC Capital Corp. stock in a transaction on Wednesday, November 8th. The shares were purchased at an average cost of $5.92 per share, with a total value of $315,630.72. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Saul B. Rosenthal bought 7,650 shares of TICC Capital Corp. stock in a transaction on Friday, August 25th. The shares were acquired at an average cost of $6.69 per share, for a total transaction of $51,178.50. The disclosure for this purchase can be found here. Over the last quarter, insiders have purchased 131,800 shares of company stock valued at $813,913. 5.90% of the stock is owned by corporate insiders.
TICC Capital Corp. is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize its portfolio’s total return. The Company primarily focuses on seeking current income by investing primarily in corporate debt securities. The Company’s debt investments may include syndicated loans and bilateral loans.
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