Crescent Capital BDC (NASDAQ:CCAP) Posts Earnings Results, Misses Estimates By $0.46 EPS

Key Points

• Crescent Capital BDC significantly missed quarterly estimates, reporting a loss of $0.09 per share versus the expected $0.37 profit. Revenue was $5.12 million, well below the $37.12 million consensus estimate.
• The company declared a $0.03 special dividend payable December 15 to shareholders of record November 30, while its payout ratio stood at 331.71%.
• Analysts maintain a consensus “Hold” rating with a $13.90 price target; shares recently traded at $11.68. Company executives also made insider purchases, while institutional investors own 49.46% of the stock.

Crescent Capital BDC (NASDAQ:CCAP - Get Free Report) posted its quarterly earnings results on Monday. The company reported ($0.09) EPS for the quarter, missing analysts' consensus estimates of $0.37 by ($0.46), FiscalAI reports. The company had revenue of $5.12 million during the quarter, compared to the consensus estimate of $37.12 million. Crescent Capital BDC had a return on equity of 9.34% and a net margin of 9.26%.

Crescent Capital BDC Price Performance

CCAP stock traded down $0.09 during midday trading on Monday, reaching $11.68. The company had a trading volume of 193,010 shares, compared to its average volume of 222,522. The firm has a 50-day moving average price of $11.16 and a 200-day moving average price of $12.42. The company has a market capitalization of $430.41 million, a P/E ratio of 28.49 and a beta of 0.52. Crescent Capital BDC has a 1 year low of $10.64 and a 1 year high of $16.03. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.53 and a quick ratio of 1.53.

Crescent Capital BDC Announces Dividend

The business also recently declared a special dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Monday, November 30th will be paid a $0.03 dividend. This represents a yield of 107.0%. The ex-dividend date of this dividend is Monday, November 30th. Crescent Capital BDC's payout ratio is currently 331.71%.

Analyst Upgrades and Downgrades

CCAP has been the subject of several analyst reports. Oppenheimer downgraded Crescent Capital BDC from an "outperform" rating to a "market perform" rating and cut their target price for the stock from $19.00 to $16.00 in a research note on Friday, May 15th. Keefe, Bruyette & Woods cut their price objective on shares of Crescent Capital BDC from $15.00 to $13.00 and set an "outperform" rating for the company in a research report on Tuesday, June 16th. Wells Fargo & Company decreased their target price on shares of Crescent Capital BDC from $13.00 to $12.00 and set an "equal weight" rating on the stock in a report on Friday, May 15th. Zacks Research raised shares of Crescent Capital BDC from a "strong sell" rating to a "hold" rating in a report on Tuesday, July 21st. Finally, B. Riley Financial reiterated a "neutral" rating on shares of Crescent Capital BDC in a research note on Friday, May 15th. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $13.90.

Insider Buying and Selling at Crescent Capital BDC

In related news, President Henry Chung bought 4,500 shares of the business's stock in a transaction that occurred on Thursday, May 21st. The stock was bought at an average cost of $11.45 per share, for a total transaction of $51,525.00. Following the completion of the transaction, the president owned 20,722 shares of the company's stock, valued at approximately $237,266.90. The trade was a 27.74% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Jason Breaux bought 5,000 shares of Crescent Capital BDC stock in a transaction that occurred on Wednesday, May 20th. The stock was purchased at an average cost of $11.19 per share, for a total transaction of $55,950.00. Following the purchase, the chief executive officer owned 52,636 shares of the company's stock, valued at $588,996.84. The trade was a 10.50% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 1.23% of the company's stock.

Hedge Funds Weigh In On Crescent Capital BDC

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Crescent Capital BDC during the 4th quarter valued at about $27,000. VPR Management LLC grew its position in Crescent Capital BDC by 150.0% during the third quarter. VPR Management LLC now owns 5,000 shares of the company's stock valued at $71,000 after acquiring an additional 3,000 shares during the last quarter. Permanens Capital L.P. purchased a new position in shares of Crescent Capital BDC during the third quarter worth approximately $147,000. XTX Topco Ltd purchased a new stake in shares of Crescent Capital BDC in the 2nd quarter valued at $165,000. Finally, NewEdge Advisors LLC boosted its stake in shares of Crescent Capital BDC by 20.2% in the 4th quarter. NewEdge Advisors LLC now owns 12,279 shares of the company's stock valued at $173,000 after purchasing an additional 2,066 shares in the last quarter. 49.46% of the stock is currently owned by hedge funds and other institutional investors.

About Crescent Capital BDC

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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