Crescent Capital BDC (NASDAQ:CCAP) Given Neutral Rating at Bank of America

Key Points

• Bank of America reaffirmed a “neutral” rating on Crescent Capital BDC, while cutting its price target to $10.25 from $13.00—implying only about 0.20% upside from the prior close.
• Analyst sentiment remains cautious, with the stock carrying a consensus “Hold” rating and an average price target of $12.62. Other firms have also reduced targets or downgraded their views.
• CCAP opened at $10.23, near its 52-week low of $10.16, after reporting quarterly EPS of $0.36—slightly below expectations—and insiders selling 451,543 shares worth about $4.69 million over the past 90 days.

Crescent Capital BDC (NASDAQ:CCAP - Get Free Report)'s stock had its "neutral" rating reaffirmed by research analysts at Bank of America in a research note issued to investors on Thursday, Benzinga reports. They currently have a $10.25 target price on the stock, down from their prior target price of $13.00. Bank of America's price target suggests a potential upside of 0.20% from the stock's previous close.

Other equities research analysts have also issued reports about the company. Keefe, Bruyette & Woods reaffirmed a "market perform" rating and issued a $12.00 price objective (down from $13.00) on shares of Crescent Capital BDC in a research note on Monday, August 17th. Oppenheimer downgraded Crescent Capital BDC from an "outperform" rating to a "market perform" rating and cut their target price for the company from $19.00 to $16.00 in a research report on Friday, May 15th. Zacks Research raised shares of Crescent Capital BDC from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 21st. Wall Street Zen lowered Crescent Capital BDC from a "hold" rating to a "sell" rating in a research note on Saturday, July 25th. Finally, B. Riley Financial decreased their price target on shares of Crescent Capital BDC from $13.50 to $12.50 and set a "neutral" rating for the company in a research note on Wednesday, August 12th. One investment analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, Crescent Capital BDC currently has a consensus rating of "Hold" and a consensus target price of $12.62.

Crescent Capital BDC Stock Performance

NASDAQ:CCAP opened at $10.23 on Thursday. The stock's 50 day simple moving average is $10.94 and its two-hundred day simple moving average is $11.86. Crescent Capital BDC has a 1 year low of $10.16 and a 1 year high of $15.86. The company has a debt-to-equity ratio of 1.41, a current ratio of 1.30 and a quick ratio of 1.30. The company has a market cap of $376.98 million, a price-to-earnings ratio of -113.67 and a beta of 0.52.

Crescent Capital BDC (NASDAQ:CCAP - Get Free Report) last announced its quarterly earnings results on Monday, August 10th. The company reported $0.36 earnings per share for the quarter, missing the consensus estimate of $0.37 by ($0.01). The business had revenue of $5.12 million during the quarter, compared to the consensus estimate of $37.12 million. Crescent Capital BDC had a positive return on equity of 9.02% and a negative net margin of 2.02%. As a group, equities analysts anticipate that Crescent Capital BDC will post 1.51 earnings per share for the current fiscal year.

Insider Activity at Crescent Capital BDC

In other news, major shareholder & Guaranty Life Insur Fidelity sold 139,054 shares of the firm's stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $10.23, for a total value of $1,422,522.42. Following the sale, the insider directly owned 3,680,307 shares in the company, valued at approximately $37,649,540.61. This trade represents a 3.64% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 451,543 shares of company stock worth $4,689,738 over the last ninety days. Corporate insiders own 1.23% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in CCAP. Fidelity National Financial Inc. purchased a new stake in shares of Crescent Capital BDC during the second quarter worth about $45,922,000. Rivernorth Capital Management LLC acquired a new stake in shares of Crescent Capital BDC in the second quarter worth $7,675,000. Invesco Ltd. lifted its holdings in shares of Crescent Capital BDC by 1,504.9% in the 4th quarter. Invesco Ltd. now owns 659,696 shares of the company's stock valued at $9,269,000 after buying an additional 618,590 shares during the period. North Ground Capital acquired a new position in Crescent Capital BDC in the second quarter valued at approximately $5,687,136. Finally, Focus Partners Wealth purchased a new stake in Crescent Capital BDC during the fourth quarter worth $5,476,000. 49.46% of the stock is currently owned by hedge funds and other institutional investors.

Crescent Capital BDC Company Profile

Crescent Capital BDC, Inc is a closed-end, externally managed business development company that provides flexible financing solutions to middle market companies in the United States. Trading on the Nasdaq under the ticker CCAP, the firm offers investors exposure to a diversified portfolio of debt and equity instruments, targeting businesses with attractive risk-adjusted return profiles. Its primary objective is to generate current income through interest payments and potential capital appreciation via selective equity co-investments.

The company’s investment strategy emphasizes senior secured loans, unsecured second-lien loans, mezzanine debt, as well as preferred and common equity co-investments.

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