Zacks Investment Research lowered shares of THL Credit (NASDAQ:TCRD) from a hold rating to a sell rating in a report published on Thursday morning.

According to Zacks, “THL Credit Inc. is a newly-organized, externally-managed, non-diversified closed-end management investment company that has filed an election to be treated as a business development company. The Company’s investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of middle market companies. The Company invests primarily in private subordinated debt, or mezzanine debt, in middle market companies that require capital for growth and acquisitions. Such investments in many cases include an associated equity component such as warrants, preferred stock or other similar securities. The Company’s investment activities are managed by its investment adviser, THL Credit Advisors LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended. “

Other equities analysts have also issued research reports about the company. BidaskClub upgraded THL Credit from a hold rating to a buy rating in a research note on Saturday, September 15th. ValuEngine lowered THL Credit from a sell rating to a strong sell rating in a research note on Thursday, November 1st. Raymond James reiterated an underperform rating on shares of THL Credit in a research note on Friday, November 9th. Finally, National Securities cut their target price on THL Credit from $10.00 to $9.00 and set a neutral rating on the stock in a research note on Wednesday, November 14th. Four equities research analysts have rated the stock with a sell rating and four have issued a hold rating to the company’s stock. THL Credit has a consensus rating of Hold and a consensus price target of $9.19.

Shares of THL Credit stock traded up $0.08 during trading on Thursday, hitting $6.54. 112,500 shares of the stock traded hands, compared to its average volume of 116,725. The firm has a market cap of $215.32 million, a P/E ratio of 5.40 and a beta of 1.06. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.34. THL Credit has a 52-week low of $5.80 and a 52-week high of $9.21.

THL Credit (NASDAQ:TCRD) last announced its quarterly earnings results on Wednesday, November 7th. The investment management company reported $0.26 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.02). The firm had revenue of $16.08 million for the quarter, compared to analysts’ expectations of $16.63 million. THL Credit had a negative net margin of 8.62% and a positive return on equity of 10.73%. Analysts forecast that THL Credit will post 1.11 earnings per share for the current year.

The business also recently announced a quarterly dividend, which was paid on Monday, December 31st. Shareholders of record on Friday, December 14th were paid a $0.27 dividend. The ex-dividend date of this dividend was Thursday, December 13th. This represents a $1.08 annualized dividend and a yield of 16.51%. THL Credit’s dividend payout ratio (DPR) is presently 89.26%.

Institutional investors and hedge funds have recently bought and sold shares of the business. Mackenzie Financial Corp grew its stake in THL Credit by 73.1% in the third quarter. Mackenzie Financial Corp now owns 96,843 shares of the investment management company’s stock valued at $782,000 after purchasing an additional 40,904 shares during the last quarter. Citadel Advisors LLC purchased a new position in THL Credit in the second quarter valued at about $108,000. Shikiar Asset Management Inc. grew its stake in THL Credit by 11.4% in the third quarter. Shikiar Asset Management Inc. now owns 179,175 shares of the investment management company’s stock valued at $1,446,000 after purchasing an additional 18,300 shares during the last quarter. Cliffwater LLC grew its stake in shares of THL Credit by 94.0% during the third quarter. Cliffwater LLC now owns 282,074 shares of the investment management company’s stock worth $2,276,000 after acquiring an additional 136,650 shares during the last quarter. Finally, Freestone Capital Holdings LLC purchased a new stake in shares of THL Credit during the third quarter worth about $2,420,000. Institutional investors own 41.03% of the company’s stock.

About THL Credit

THL Credit, Inc is a business development company specializing in direct and fund of fund investments. The fund seeks to invest in debt and equity securities of middle market companies. It seeks to invest in PIPES, growth, acquisition, market or product expansion, recapitalization, mature, and change of control transactions in both sponsored and unsponsored issuers.

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