Great Elm Capital Group (NASDAQ:GECC) Announces Quarterly Earnings Results

Key Points

• Great Elm Capital Group missed quarterly expectations: The company reported a loss of $0.30 per share versus analysts’ expected profit of $0.18, while revenue of $8.69 million fell short of the $9.59 million consensus estimate.
• Shares rose 1% to $5.00 despite the weak results. The stock remains near its 52-week low of $4.63 and has a market capitalization of approximately $69.45 million.
• The company paid a $0.25 quarterly dividend, equivalent to a $1.00 annualized payout and a 20% yield. Analyst sentiment remains cautious, with an average rating of “Reduce” and a $10 consensus price target.

Great Elm Capital Group (NASDAQ:GECC - Get Free Report) posted its quarterly earnings results on Monday. The financial services provider reported ($0.30) earnings per share for the quarter, missing analysts' consensus estimates of $0.18 by ($0.48), FiscalAI reports. The firm had revenue of $8.69 million during the quarter, compared to the consensus estimate of $9.59 million. Great Elm Capital Group had a positive return on equity of 13.87% and a negative net margin of 87.74%.

Great Elm Capital Group Trading Up 1.0%

NASDAQ GECC traded up $0.05 on Monday, hitting $5.00. 113,307 shares of the stock were exchanged, compared to its average volume of 76,163. Great Elm Capital Group has a 52-week low of $4.63 and a 52-week high of $8.14. The firm has a market capitalization of $69.45 million, a P/E ratio of -1.69 and a beta of 0.82. The company has a debt-to-equity ratio of 1.47, a quick ratio of 0.93 and a current ratio of 0.93. The stock has a fifty day moving average price of $5.38 and a two-hundred day moving average price of $5.69.

Great Elm Capital Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 20.0%. The ex-dividend date of this dividend was Tuesday, September 15th. Great Elm Capital Group's payout ratio is presently -33.90%.

Wall Street Analyst Weigh In

GECC has been the subject of a number of recent research reports. Weiss Ratings reissued a "sell (d)" rating on shares of Great Elm Capital Group in a report on Tuesday, September 1st. Zacks Research downgraded shares of Great Elm Capital Group from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Three analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus target price of $10.00.

Great Elm Capital Group Company Profile

Great Elm Capital Corp. NASDAQ: GECC is a closed-end, externally managed business development company that provides financing to middle-market companies. The company seeks to generate income and capital appreciation by investing primarily in privately negotiated debt securities, including senior secured loans, subordinated debt and other credit instruments.

In addition to debt investments, Great Elm Capital may invest in equity securities and other interests when appropriate. Its portfolio companies generally operate in a range of industries, and the company focuses primarily on businesses in the United States.

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