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. “
A number of other brokerages also recently weighed in on TCRD. Deutsche Bank cut their price target on shares of THL Credit from $7.50 to $6.00 and set a “hold” rating on the stock in a research report on Friday, March 6th. Maxim Group reiterated a “hold” rating on shares of THL Credit in a research report on Wednesday, December 11th. Five investment analysts have rated the stock with a hold rating, The stock has an average rating of “Hold” and an average price target of $6.75.
THL Credit (NASDAQ:TCRD) last announced its quarterly earnings results on Thursday, March 5th. The investment management company reported $0.16 earnings per share for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.05). The firm had revenue of $10.10 million during the quarter, compared to analyst estimates of $11.99 million. THL Credit had a negative net margin of 46.84% and a positive return on equity of 10.52%. Analysts predict that THL Credit will post 0.69 EPS for the current year.
In other THL Credit news, CEO Medhi Mahmud bought 37,266 shares of the stock in a transaction that occurred on Friday, March 13th. The stock was acquired at an average cost of $2.74 per share, with a total value of $102,108.84. Also, insider James R. Fellows bought 32,000 shares of the stock in a transaction that occurred on Thursday, March 12th. The shares were acquired at an average cost of $3.10 per share, with a total value of $99,200.00. Following the completion of the purchase, the insider now owns 59,000 shares in the company, valued at approximately $182,900. The disclosure for this purchase can be found here. Over the last three months, insiders have purchased 90,066 shares of company stock valued at $263,109. 0.63% of the stock is owned by company insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Fort Washington Investment Advisors Inc. OH increased its stake in THL Credit by 4.7% during the 4th quarter. Fort Washington Investment Advisors Inc. OH now owns 461,909 shares of the investment management company’s stock worth $2,915,000 after purchasing an additional 20,796 shares in the last quarter. LSV Asset Management grew its stake in shares of THL Credit by 8.2% during the 4th quarter. LSV Asset Management now owns 1,018,613 shares of the investment management company’s stock worth $6,427,000 after acquiring an additional 77,256 shares in the last quarter. Great West Life Assurance Co. Can grew its stake in shares of THL Credit by 0.7% during the 4th quarter. Great West Life Assurance Co. Can now owns 1,434,226 shares of the investment management company’s stock worth $8,995,000 after acquiring an additional 9,306 shares in the last quarter. Stilwell Value LLC grew its stake in shares of THL Credit by 17.3% during the 4th quarter. Stilwell Value LLC now owns 657,851 shares of the investment management company’s stock worth $4,151,000 after acquiring an additional 97,212 shares in the last quarter. Finally, Athena Capital Advisors LLC grew its stake in shares of THL Credit by 10.9% during the 4th quarter. Athena Capital Advisors LLC now owns 385,506 shares of the investment management company’s stock worth $2,433,000 after acquiring an additional 37,957 shares in the last quarter. 47.13% of the stock is owned by institutional investors and hedge funds.
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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