Blackrock Tcp Capital Corp. (NASDAQ:TCPC) Declares Quarterly Dividend of $0.17

Key Points

• BlackRock TCP Capital declared a quarterly dividend of $0.17 per share (ex-dividend June 16, payable June 30), implying an annualized yield of about 15.6%.
• While the current dividend payout ratio is 63.6%, analysts expect next-year EPS of $0.66 versus a $0.68 annual dividend, meaning the dividend may not be fully covered if estimates prove accurate.
• The company beat Q1 estimates (EPS $0.21 vs $0.20; revenue $42.6M vs $40.1M) but reported a negative net margin (-44%), and market sentiment is weak with an average analyst rating of "Strong Sell" and a $3.50 average price target below the recent $4.36 share price.

Blackrock Tcp Capital Corp. (NASDAQ:TCPC - Get Free Report) declared a quarterly dividend on Thursday, May 7th. Stockholders of record on Tuesday, June 16th will be given a dividend of 0.17 per share by the investment management company on Tuesday, June 30th. This represents a c) dividend on an annualized basis and a dividend yield of 15.6%. The ex-dividend date is Tuesday, June 16th.

Blackrock Tcp Capital has decreased its dividend payment by an average of 0.0%annually over the last three years. Blackrock Tcp Capital has a dividend payout ratio of 63.6% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Blackrock Tcp Capital to earn $0.66 per share next year, which means the company may not be able to cover its $0.68 annual dividend with an expected future payout ratio of 103.0%.

Blackrock Tcp Capital Stock Performance

Shares of TCPC remained flat at $4.36 during midday trading on Thursday. The stock had a trading volume of 707,156 shares, compared to its average volume of 1,155,924. The company has a quick ratio of 17.66, a current ratio of 17.66 and a debt-to-equity ratio of 1.73. The firm has a market capitalization of $367.24 million, a P/E ratio of -4.15 and a beta of 0.98. The business has a 50-day moving average price of $3.93 and a 200-day moving average price of $4.98. Blackrock Tcp Capital has a 1 year low of $3.43 and a 1 year high of $8.06.

Blackrock Tcp Capital (NASDAQ:TCPC - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The investment management company reported $0.21 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $0.01. The company had revenue of $42.58 million for the quarter, compared to analysts' expectations of $40.10 million. Blackrock Tcp Capital had a positive return on equity of 15.06% and a negative net margin of 44.07%. Research analysts forecast that Blackrock Tcp Capital will post 0.77 EPS for the current fiscal year.

Analysts Set New Price Targets

Several research firms have commented on TCPC. Wells Fargo & Company decreased their price target on shares of Blackrock Tcp Capital from $5.50 to $3.50 and set an "underweight" rating on the stock in a research note on Monday, March 2nd. Zacks Research cut shares of Blackrock Tcp Capital from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, February 4th. Wall Street Zen cut shares of Blackrock Tcp Capital from a "hold" rating to a "sell" rating in a research report on Saturday, March 7th. Finally, Keefe, Bruyette & Woods reissued an "underperform" rating and issued a $3.50 price target (down from $7.00) on shares of Blackrock Tcp Capital in a research note on Tuesday, March 3rd. One investment analyst has rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Strong Sell" and an average price target of $3.50.

Blackrock Tcp Capital Company Profile

BlackRock TCP Capital Corp is a publicly traded business development company (BDC) listed on the NASDAQ under the ticker TCPC. Externally managed by BlackRock, the firm provides customized financing solutions to U.S. middle-market companies, with a focus on sponsor-backed transactions. Its core strategy centers on delivering current income and capital appreciation through a diversified portfolio of debt and equity investments across a variety of sectors, including consumer products, healthcare, business services and industrials.

Since its initial public offering in 2013, BlackRock TCP Capital has partnered with private equity sponsors to underwrite and structure senior secured first-lien loans, second-lien loans, mezzanine debt and select equity co-investments.

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