North Ground Capital Makes New $2.08 Billion Investment in SLR Investment Corp. $SLRC

Key Points

• North Ground Capital acquired 168,000 shares of SLR Investment Corp. worth approximately $2.08 billion, making SLRC 2.5% of its portfolio and its 14th-largest holding. Institutional investors collectively own 35.32% of the company.
• SLR Investment reported quarterly EPS of $0.33, in line with analyst expectations, but revenue of $20.5 million fell well short of the $48.82 million consensus estimate. The company declared a quarterly dividend of $0.31, representing a 9.8% annualized yield.
• Analyst sentiment is cautious: SLRC has a consensus “Hold” rating, with two Buy, four Hold, and two Sell ratings, and an average price target of $14.10 versus a recent share price of $12.63.

North Ground Capital purchased a new stake in SLR Investment Corp. (NASDAQ:SLRC - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 168,000 shares of the financial services provider's stock, valued at approximately $2,078,160,000. SLR Investment comprises 2.5% of North Ground Capital's investment portfolio, making the stock its 14th biggest holding. North Ground Capital owned about 0.31% of SLR Investment as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also made changes to their positions in the stock. Closed End Fund Advisors Inc. bought a new stake in SLR Investment in the 4th quarter valued at $4,033,000. UBS Group AG raised its stake in shares of SLR Investment by 15.5% in the fourth quarter. UBS Group AG now owns 577,728 shares of the financial services provider's stock valued at $8,932,000 after acquiring an additional 77,705 shares during the last quarter. Altrafin AG acquired a new position in SLR Investment in the fourth quarter worth $786,000. Clear Harbor Asset Management LLC bought a new stake in SLR Investment during the 2nd quarter worth about $4,205,000. Finally, Legal & General Group Plc increased its holdings in shares of SLR Investment by 18.5% in the fourth quarter. Legal & General Group Plc now owns 379,906 shares of the financial services provider's stock valued at $5,873,000 after purchasing an additional 59,194 shares in the last quarter. Institutional investors own 35.32% of the company's stock.

SLR Investment Price Performance

Shares of SLRC stock opened at $12.63 on Monday. SLR Investment Corp. has a 12-month low of $12.13 and a 12-month high of $16.83. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 1.17. The firm has a fifty day moving average of $12.75 and a 200-day moving average of $13.79. The company has a market capitalization of $689.09 million, a price-to-earnings ratio of 9.36 and a beta of 0.64.

SLR Investment (NASDAQ:SLRC - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $0.33 EPS for the quarter, meeting the consensus estimate of $0.33. The business had revenue of $20.50 million for the quarter, compared to analysts' expectations of $48.82 million. SLR Investment had a net margin of 35.20% and a return on equity of 7.96%. As a group, equities research analysts predict that SLR Investment Corp. will post 1.31 earnings per share for the current fiscal year.

SLR Investment Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 11th will be paid a $0.31 dividend. The ex-dividend date of this dividend is Friday, September 11th. This represents a $1.24 annualized dividend and a dividend yield of 9.8%. SLR Investment's dividend payout ratio (DPR) is currently 91.85%.

Analyst Ratings Changes

Several analysts have weighed in on SLRC shares. JPMorgan Chase & Co. dropped their price objective on SLR Investment from $13.50 to $12.00 and set an "underweight" rating for the company in a report on Thursday, July 2nd. Wells Fargo & Company dropped their price objective on SLR Investment from $12.00 to $11.00 and set an "underweight" rating on the stock in a research note on Thursday, May 7th. Wall Street Zen cut SLR Investment from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. B. Riley Financial downgraded SLR Investment from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 11th. Finally, Weiss Ratings lowered SLR Investment from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, July 28th. Two analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $14.10.

SLR Investment Company Profile

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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