Crescent Capital BDC, Inc. (NASDAQ:CCAP) Sees Significant Increase in Short Interest

Key Points

• Short interest in Crescent Capital BDC surged 66.6% in May to 699,889 shares, representing about 1.9% of the float and a short-interest ratio of 2.9 days.
• Several analysts turned more cautious on CCAP, with Oppenheimer cutting the stock to Market Perform and multiple firms lowering price targets; the consensus rating is now Hold with a $14.30 target.
• Insiders were buying shares: CEO Jason Breaux and President Henry Chung both made purchases in May, while the stock was trading around $11.21, near its 1-year low of $10.92.

Crescent Capital BDC, Inc. (NASDAQ:CCAP - Get Free Report) saw a large increase in short interest in May. As of May 29th, there was short interest totaling 699,889 shares, an increase of 66.6% from the May 14th total of 419,998 shares. Based on an average daily trading volume, of 243,376 shares, the short-interest ratio is currently 2.9 days. Currently, 1.9% of the shares of the stock are sold short.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on CCAP. Oppenheimer lowered Crescent Capital BDC from an "outperform" rating to a "market perform" rating and dropped their price target for the company from $19.00 to $16.00 in a research report on Friday, May 15th. LADENBURG THALM/SH SH dropped their price target on Crescent Capital BDC from $16.00 to $15.00 and set a "buy" rating for the company in a research report on Friday, May 15th. Wells Fargo & Company dropped their price target on Crescent Capital BDC from $13.00 to $12.00 and set an "equal weight" rating for the company in a research report on Friday, May 15th. Zacks Research lowered Crescent Capital BDC from a "hold" rating to a "strong sell" rating in a research report on Monday, May 18th. Finally, B. Riley Financial restated a "neutral" rating on shares of Crescent Capital BDC in a research report on Friday, May 15th. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $14.30.

Insider Activity at Crescent Capital BDC

In related news, CEO Jason Breaux purchased 5,000 shares of the company's stock in a transaction dated Wednesday, May 20th. The stock was acquired at an average cost of $11.19 per share, for a total transaction of $55,950.00. Following the completion of the transaction, the chief executive officer directly owned 52,636 shares of the company's stock, valued at approximately $588,996.84. This trade represents a 10.50% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, President Henry Chung purchased 4,500 shares of the company's stock in a transaction dated Thursday, May 21st. The stock was bought at an average price of $11.45 per share, with a total value of $51,525.00. Following the completion of the transaction, the president directly owned 20,722 shares of the company's stock, valued at approximately $237,266.90. This represents a 27.74% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 1.23% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Cobblestone Capital Advisors LLC NY boosted its position in shares of Crescent Capital BDC by 1.3% during the third quarter. Cobblestone Capital Advisors LLC NY now owns 58,783 shares of the company's stock worth $838,000 after buying an additional 741 shares during the period. Ieq Capital LLC boosted its position in shares of Crescent Capital BDC by 3.0% during the fourth quarter. Ieq Capital LLC now owns 25,470 shares of the company's stock worth $358,000 after buying an additional 746 shares during the period. Mariner LLC boosted its position in shares of Crescent Capital BDC by 0.3% during the fourth quarter. Mariner LLC now owns 451,774 shares of the company's stock worth $6,369,000 after buying an additional 1,492 shares during the period. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Crescent Capital BDC during the fourth quarter worth $27,000. Finally, LMG Wealth Partners LLC boosted its position in shares of Crescent Capital BDC by 17.8% during the first quarter. LMG Wealth Partners LLC now owns 13,548 shares of the company's stock worth $165,000 after buying an additional 2,048 shares during the period. 49.46% of the stock is currently owned by hedge funds and other institutional investors.

Crescent Capital BDC Trading Down 0.4%

CCAP stock traded down $0.05 during midday trading on Monday, hitting $11.21. 191,727 shares of the company's stock were exchanged, compared to its average volume of 211,676. The business has a 50-day simple moving average of $12.35 and a two-hundred day simple moving average of $13.39. The company has a current ratio of 1.53, a quick ratio of 1.53 and a debt-to-equity ratio of 1.35. The stock has a market capitalization of $413.09 million, a PE ratio of 27.37 and a beta of 0.52. Crescent Capital BDC has a 1-year low of $10.92 and a 1-year high of $16.03.

Crescent Capital BDC (NASDAQ:CCAP - Get Free Report) last posted its earnings results on Wednesday, May 13th. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.01. The company had revenue of ($6.84) million during the quarter, compared to analysts' expectations of $39.58 million. Crescent Capital BDC had a return on equity of 9.34% and a net margin of 9.26%. On average, sell-side analysts predict that Crescent Capital BDC will post 1.38 EPS for the current fiscal year.

Crescent Capital BDC Announces Dividend

The firm also recently announced a special dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Monday, November 30th will be paid a dividend of $0.03 per share. The ex-dividend date of this dividend is Monday, November 30th. This represents a yield of 107.0%. Crescent Capital BDC's dividend payout ratio (DPR) is 409.76%.

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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