GCM Grosvenor Inc. (NASDAQ:GCMG) Sees Significant Growth in Short Interest

Key Points

• Short interest surged 28.1% in March to 1,892,230 shares (4.0% of float), with a days-to-cover of about 2.3 based on average daily volume.
• Analysts show a consensus "Moderate Buy" with a $15 target (two Buys, one Hold), though Piper Sandler and Oppenheimer recently cut their price targets to $13 and $17 respectively.
• GCM Grosvenor pays a quarterly dividend of $0.12 (annualized yield ~4.4%), but the payout ratio is **129.7%**, suggesting the dividend may be unsustainably high relative to earnings.

GCM Grosvenor Inc. (NASDAQ:GCMG - Get Free Report) was the target of a large growth in short interest in March. As of March 31st, there was short interest totaling 1,892,230 shares, a growth of 28.1% from the March 15th total of 1,477,068 shares. Based on an average daily volume of 837,169 shares, the days-to-cover ratio is currently 2.3 days. Currently, 4.0% of the company's shares are sold short.

Analyst Upgrades and Downgrades

Several research analysts have commented on GCMG shares. Weiss Ratings restated a "hold (c+)" rating on shares of GCM Grosvenor in a report on Friday, April 10th. Piper Sandler reduced their target price on shares of GCM Grosvenor from $14.50 to $13.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 7th. Finally, Oppenheimer lowered their price target on shares of GCM Grosvenor from $24.00 to $17.00 and set an "outperform" rating for the company in a research report on Monday. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, GCM Grosvenor presently has a consensus rating of "Moderate Buy" and a consensus target price of $15.00.

Institutional Trading of GCM Grosvenor

Institutional investors have recently bought and sold shares of the company. CWM LLC grew its position in GCM Grosvenor by 83.6% during the 3rd quarter. CWM LLC now owns 4,199 shares of the company's stock valued at $51,000 after purchasing an additional 1,912 shares during the last quarter. National Bank of Canada FI grew its position in GCM Grosvenor by 65.5% during the 3rd quarter. National Bank of Canada FI now owns 4,405 shares of the company's stock valued at $53,000 after purchasing an additional 1,743 shares during the last quarter. CANADA LIFE ASSURANCE Co grew its position in GCM Grosvenor by 44.9% during the 4th quarter. CANADA LIFE ASSURANCE Co now owns 4,570 shares of the company's stock valued at $52,000 after purchasing an additional 1,417 shares during the last quarter. Tower Research Capital LLC TRC grew its position in GCM Grosvenor by 308.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,776 shares of the company's stock valued at $67,000 after purchasing an additional 4,362 shares during the last quarter. Finally, Quarry LP purchased a new stake in GCM Grosvenor during the 3rd quarter valued at about $71,000. 99.95% of the stock is owned by hedge funds and other institutional investors.

GCM Grosvenor Trading Up 3.5%

Shares of NASDAQ GCMG opened at $10.88 on Thursday. GCM Grosvenor has a 1 year low of $9.30 and a 1 year high of $13.22. The stock has a market cap of $2.20 billion, a P/E ratio of 29.41 and a beta of 0.88. The firm has a 50-day moving average of $10.67 and a 200 day moving average of $11.17. The company has a debt-to-equity ratio of 3.36, a current ratio of 1.72 and a quick ratio of 1.72.

GCM Grosvenor (NASDAQ:GCMG - Get Free Report) last issued its quarterly earnings results on Tuesday, February 10th. The company reported $0.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.24 by $0.07. GCM Grosvenor had a net margin of 8.14% and a return on equity of 2,505.59%. The company had revenue of $177.10 million during the quarter, compared to analysts' expectations of $160.20 million. As a group, sell-side analysts expect that GCM Grosvenor will post 0.64 EPS for the current fiscal year.

GCM Grosvenor Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Monday, March 2nd were given a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 4.4%. The ex-dividend date of this dividend was Monday, March 2nd. GCM Grosvenor's dividend payout ratio is 129.73%.

About GCM Grosvenor

GCM Grosvenor is a global alternative asset management firm that specializes in customized investment solutions across a range of private markets and hedge fund strategies. The firm partners with institutional clients—including pension funds, endowments, insurers and sovereign wealth funds—to design and implement portfolios that span private equity, infrastructure, real estate, credit and multi‐strategy hedge fund products. Through its multi‐manager platforms and direct co‐investment vehicles, GCM Grosvenor provides diversified access to opportunities that can enhance returns and manage risk in client portfolios.

Founded in 1971 as Grosvenor Capital Management, the firm has built a track record of sourcing, structuring and monitoring alternative investments on behalf of its clients.

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