SLR Investment (NASDAQ:SLRC) Hits New 52-Week Low – Should You Sell?

Shares of SLR Investment Corp. (NASDAQ:SLRC) hit a new 52-week low during mid-day trading on Tuesday. The company traded as low as $11.53 and last traded at $11.64, with a volume of 407341 shares. The stock had previously closed at $11.74.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on SLRC. JPMorgan Chase & Co. lowered their price target on shares of SLR Investment from $13.50 to $12.00 and set an “underweight” rating for the company in a report on Thursday, July 2nd. Weiss Ratings downgraded SLR Investment from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, July 28th. B. Riley Financial lowered SLR Investment from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 11th. Zacks Research raised SLR Investment from a “strong sell” rating to a “hold” rating in a research note on Tuesday, August 11th. Finally, Wall Street Zen upgraded SLR Investment from a “sell” rating to a “hold” rating in a research report on Saturday, September 26th. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $14.10.

SLR Investment Stock Performance

The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.09 and a current ratio of 1.09. The company has a market cap of $632.29 million, a price-to-earnings ratio of 8.59 and a beta of 0.64. The firm’s 50-day moving average price is $12.51 and its 200 day moving average price is $13.28.

SLR Investment (NASDAQ:SLRC) last announced its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $0.33 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.33. SLR Investment had a net margin of 35.20% and a return on equity of 7.96%. The firm had revenue of $20.50 million for the quarter, compared to analysts’ expectations of $48.82 million. On average, sell-side analysts anticipate that SLR Investment Corp. will post 1.31 EPS for the current year.

SLR Investment Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 11th were given a $0.31 dividend. This represents a $1.24 annualized dividend and a dividend yield of 10.7%. The ex-dividend date was Friday, September 11th. SLR Investment’s dividend payout ratio (DPR) is currently 91.85%.

Insider Activity at SLR Investment

In related news, insider Michael Gross acquired 20,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 10th. The stock was acquired at an average cost of $12.35 per share, with a total value of $247,000.00. Following the completion of the purchase, the insider directly owned 4,065,153 shares in the company, valued at approximately $50,204,639.55. This trade represents a 0.49% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 8.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On SLR Investment

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Legal & General Group Plc bought a new stake in SLR Investment in the second quarter valued at approximately $5,516,000. Clear Harbor Asset Management LLC bought a new position in shares of SLR Investment during the second quarter worth $4,205,000. Closed End Fund Advisors Inc. acquired a new position in shares of SLR Investment in the 4th quarter valued at $4,033,000. Van ECK Associates Corp grew its holdings in shares of SLR Investment by 24.8% in the 2nd quarter. Van ECK Associates Corp now owns 1,104,114 shares of the financial services provider’s stock valued at $13,658,000 after buying an additional 219,110 shares during the period. Finally, BlackRock Inc. bought a new stake in shares of SLR Investment in the 2nd quarter valued at $2,513,000. Institutional investors own 35.32% of the company’s stock.

About SLR Investment

SLR Investment Corp. (NASDAQ: SLRC) is a business development company that provides financing to middle-market companies, primarily in the United States. The company invests mainly in senior secured loans and other debt instruments, with a focus on businesses that may require flexible capital solutions to support acquisitions, growth, recapitalizations, refinancing, and other corporate initiatives.

SLR Investment may also make subordinated debt and equity investments, including investments alongside its lending activities.