Closed End Fund Advisors Inc. Buys Shares of 260,893 SLR Investment Corp. $SLRC

Key Points

• Closed End Fund Advisors Inc. initiated a new position in SLR Investment Corp., buying 260,893 shares worth about $4.0 million in the fourth quarter. The stake represents 2.4% of its portfolio and makes SLRC its 9th largest holding.
• SLR Investment also saw notable insider buying, with Michael S. Gross purchasing 10,000 shares at $13.09 each. Insiders bought 45,452 shares over the last quarter, while 8.8% of the company is owned by corporate insiders.
• The company recently cut its quarterly dividend to $0.31 per share, implying a 9.7% yield, while its latest earnings missed analyst expectations. Analysts currently have a consensus rating of “Reduce” with an average price target of $14.40.

Closed End Fund Advisors Inc. bought a new stake in SLR Investment Corp. (NASDAQ:SLRC - Free Report) during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 260,893 shares of the financial services provider's stock, valued at approximately $4,033,000. SLR Investment comprises 2.4% of Closed End Fund Advisors Inc.'s investment portfolio, making the stock its 9th biggest position. Closed End Fund Advisors Inc. owned about 0.48% of SLR Investment as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently bought and sold shares of SLRC. Millennium Management LLC acquired a new position in SLR Investment in the 3rd quarter valued at about $2,650,000. Muzinich & Co. Inc. boosted its holdings in SLR Investment by 37.4% in the 4th quarter. Muzinich & Co. Inc. now owns 534,336 shares of the financial services provider's stock valued at $8,261,000 after purchasing an additional 145,323 shares during the last quarter. Triad Investment Management acquired a new position in SLR Investment in the 4th quarter valued at about $1,930,000. UBS Group AG boosted its holdings in SLR Investment by 22.4% in the 3rd quarter. UBS Group AG now owns 500,023 shares of the financial services provider's stock valued at $7,645,000 after purchasing an additional 91,622 shares during the last quarter. Finally, Two Sigma Investments LP boosted its holdings in SLR Investment by 25.4% in the 3rd quarter. Two Sigma Investments LP now owns 380,119 shares of the financial services provider's stock valued at $5,812,000 after purchasing an additional 76,931 shares during the last quarter. 35.32% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other SLR Investment news, insider Michael S. Gross bought 10,000 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The shares were purchased at an average cost of $13.09 per share, with a total value of $130,900.00. Following the purchase, the insider directly owned 4,035,153 shares in the company, valued at approximately $52,820,152.77. This represents a 0.25% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Over the last quarter, insiders have purchased 45,452 shares of company stock worth $623,933. 8.80% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

SLRC has been the topic of several recent analyst reports. Compass Point upgraded shares of SLR Investment from a "neutral" rating to a "buy" rating and set a $16.50 target price on the stock in a report on Tuesday, March 10th. JPMorgan Chase & Co. decreased their target price on shares of SLR Investment from $14.00 to $13.50 and set an "underweight" rating on the stock in a report on Thursday, May 7th. Zacks Research lowered shares of SLR Investment from a "hold" rating to a "strong sell" rating in a report on Friday, May 8th. Raymond James Financial set a $16.00 price target on shares of SLR Investment and gave the company an "outperform" rating in a research note on Wednesday, February 25th. Finally, Wells Fargo & Company reduced their price target on shares of SLR Investment from $12.00 to $11.00 and set an "underweight" rating on the stock in a research note on Thursday, May 7th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, SLR Investment presently has an average rating of "Reduce" and a consensus price target of $14.40.

SLR Investment Price Performance

SLR Investment stock opened at $12.79 on Friday. The company's 50 day simple moving average is $14.27 and its 200-day simple moving average is $14.83. The company has a market capitalization of $697.82 million, a price-to-earnings ratio of 7.80 and a beta of 0.64. SLR Investment Corp. has a 1 year low of $12.79 and a 1 year high of $17.19. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.04 and a current ratio of 1.04.

SLR Investment (NASDAQ:SLRC - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The financial services provider reported $0.33 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.40 by ($0.07). SLR Investment had a net margin of 41.81% and a return on equity of 8.33%. The company had revenue of $47.14 million during the quarter, compared to analysts' expectations of $54.01 million. As a group, equities research analysts expect that SLR Investment Corp. will post 1.33 earnings per share for the current year.

SLR Investment Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Friday, June 12th will be paid a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a yield of 9.7%. The ex-dividend date of this dividend is Friday, June 12th. SLR Investment's dividend payout ratio is presently 100.00%.

About SLR Investment

SLR Investment Corp. NASDAQ: SLRC is a closed‐end, externally managed business development company that provides customized debt and equity financing solutions to middle‐market companies. The firm seeks to generate current income and capital appreciation by investing primarily in senior secured loans, second lien financings, mezzanine debt and equity co‐investments. Its flexible capital approach allows it to structure financing across the capital structure to address a range of sponsor‐backed transactions.

SLR Investment Corp.

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