Zacks Investment Research cut shares of KCAP Financial (NASDAQ:KCAP) from a buy rating to a hold rating in a report issued on Tuesday morning.
According to Zacks, “KCAP Financial Inc. is an internally managed business development company. The Company’s middle market investment business originates, structures, finances and manages a portfolio of term loans, mezzanine investments and selected equity securities in middle market companies. KCAP Financial Inc., formerly Kohlberg Capital Corp., is based in the New York. “
KCAP has been the subject of a number of other reports. Keefe, Bruyette & Woods reiterated a hold rating and set a $3.50 price target on shares of KCAP Financial in a report on Tuesday, October 24th. Ladenburg Thalmann Financial Services assumed coverage on KCAP Financial in a report on Monday, September 25th. They set a neutral rating for the company. Three research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus price target of $7.75.
Shares of KCAP Financial (KCAP) traded up $0.03 during mid-day trading on Tuesday, hitting $3.44. The stock had a trading volume of 108,699 shares, compared to its average volume of 176,767. KCAP Financial has a one year low of $3.30 and a one year high of $4.12. The firm has a market capitalization of $127.92, a price-to-earnings ratio of 57.33 and a beta of 1.71. The company has a current ratio of 0.16, a quick ratio of 0.16 and a debt-to-equity ratio of 0.55.
KCAP Financial (NASDAQ:KCAP) last issued its quarterly earnings results on Tuesday, November 7th. The financial services provider reported $0.07 EPS for the quarter, missing analysts’ consensus estimates of $0.08 by ($0.01). KCAP Financial had a return on equity of 6.54% and a net margin of 7.78%. The business had revenue of $6.25 million for the quarter, compared to analyst estimates of $6.80 million. equities analysts expect that KCAP Financial will post 0.29 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 25th. Stockholders of record on Friday, January 5th will be issued a dividend of $0.10 per share. The ex-dividend date of this dividend is Thursday, January 4th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 11.63%. KCAP Financial’s dividend payout ratio (DPR) is presently 666.67%.
Several hedge funds have recently modified their holdings of the company. Macquarie Group Ltd. acquired a new position in shares of KCAP Financial in the third quarter valued at $125,000. Legal & General Group Plc raised its stake in shares of KCAP Financial by 8.6% in the second quarter. Legal & General Group Plc now owns 92,703 shares of the financial services provider’s stock valued at $328,000 after purchasing an additional 7,303 shares in the last quarter. Citadel Advisors LLC raised its stake in shares of KCAP Financial by 55.8% in the third quarter. Citadel Advisors LLC now owns 41,545 shares of the financial services provider’s stock valued at $152,000 after purchasing an additional 14,879 shares in the last quarter. Finally, Ares Management LLC raised its stake in shares of KCAP Financial by 3.5% in the second quarter. Ares Management LLC now owns 160,322 shares of the financial services provider’s stock valued at $565,000 after purchasing an additional 5,487 shares in the last quarter. Institutional investors own 20.22% of the company’s stock.
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KCAP Financial Company Profile
KCAP Financial, Inc is an internally managed, non-diversified closed-end investment company. The Company has approximately three principal areas of investments. First, the Company originates, structures and invests in senior secured term loans and mezzanine debt primarily in privately-held middle market companies (the debt securities portfolio).
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