Great Elm Capital Group (NASDAQ:GECC) Releases Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• Great Elm Capital Group beat quarterly expectations: The company reported EPS of $0.46, exceeding the $0.35 consensus estimate, while revenue of $14.74 million topped forecasts of $11.32 million.
• Shares fell 2.5% to $5.16 despite the earnings beat. GECC has a market capitalization of $71.67 million and has traded between $4.63 and $11.45 over the past year.
• Analyst sentiment remains cautious: The stock carries a consensus “Reduce” rating, with three Holds and one Sell, and a consensus price target of $10.50. Institutional investors own 38.75% of the company.

Great Elm Capital Group (NASDAQ:GECC - Get Free Report) announced its quarterly earnings data on Wednesday. The financial services provider reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.11, FiscalAI reports. The business had revenue of $14.74 million during the quarter, compared to analyst estimates of $11.32 million. Great Elm Capital Group had a positive return on equity of 14.16% and a negative net margin of 70.13%.

Great Elm Capital Group Stock Down 2.5%

GECC stock traded down $0.13 during trading hours on Wednesday, hitting $5.16. The company's stock had a trading volume of 44,735 shares, compared to its average volume of 46,040. The stock has a 50 day moving average price of $5.53 and a two-hundred day moving average price of $5.77. Great Elm Capital Group has a 12 month low of $4.63 and a 12 month high of $11.45. The company has a market capitalization of $71.67 million, a PE ratio of 3.83 and a beta of 0.77. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 1.57.

Wall Street Analyst Weigh In

Several research analysts have weighed in on GECC shares. Zacks Research lowered Great Elm Capital Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Great Elm Capital Group in a research note on Thursday, June 4th. Three research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus price target of $10.50.

Institutional Investors Weigh In On Great Elm Capital Group

Several institutional investors and hedge funds have recently modified their holdings of the business. Kestra Private Wealth Services LLC bought a new stake in Great Elm Capital Group in the third quarter worth $145,000. Virtu Financial LLC bought a new position in Great Elm Capital Group during the third quarter valued at about $160,000. Schonfeld Strategic Advisors LLC acquired a new stake in shares of Great Elm Capital Group in the third quarter worth about $169,000. Papamarkou Wellner Asset Management inc. lifted its position in shares of Great Elm Capital Group by 54.9% in the fourth quarter. Papamarkou Wellner Asset Management inc. now owns 30,200 shares of the financial services provider's stock worth $213,000 after buying an additional 10,700 shares during the last quarter. Finally, Jane Street Group LLC acquired a new stake in shares of Great Elm Capital Group in the fourth quarter worth about $220,000. Institutional investors and hedge funds own 38.75% of the company's stock.

Great Elm Capital Group Company Profile

Great Elm Capital Group, Inc NASDAQ: GECC is a closed-end, externally managed business development company (BDC) that seeks to generate current income and capital appreciation by investing in private, middle-market companies. The firm targets senior secured loans, subordinated debt and equity securities of U.S. companies, with a focus on businesses offering stable cash flows and potential for growth. Industry sectors of interest include business services, consumer products, industrials and healthcare, among others.

GECC's investment strategy emphasizes portfolio diversification and active management.

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