Great Elm Capital Group (NASDAQ:GECC) Share Price Crosses Below 50 Day Moving Average - Time to Sell?

Key Points

• Technical bearish signal: GECC shares crossed below their 50‑day moving average, trading as low as $4.63 and last at $4.74 versus a 50‑day MA of $6.52 and 200‑day MA of $7.74 on volume of about 600k shares.
• Analyst sentiment weak: Multiple downgrades (Clear Str to Hold, Weiss reissued Sell, Zacks to Strong Sell) leave an average MarketBeat rating of Reduce despite an average target price of $10.50.
• Fundamentals and dividend risks: the company missed EPS ($0.31 vs $0.32), reported a negative net margin (‑63.59%) and unusual revenue figures, has high leverage and poor liquidity (D/E 1.68, current ratio 0.24), and recently declared a $0.30 quarterly dividend (25.3% yield) with a negative payout ratio (‑52.17%), raising sustainability concerns.

Shares of Great Elm Capital Group, Inc. (NASDAQ:GECC - Get Free Report) crossed below its 50-day moving average during trading on Tuesday . The stock has a 50-day moving average of $6.52 and traded as low as $4.63. Great Elm Capital Group shares last traded at $4.74, with a volume of 599,979 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the company. Clear Str cut Great Elm Capital Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 3rd. Weiss Ratings reissued a "sell (d+)" rating on shares of Great Elm Capital Group in a research note on Monday, December 29th. Finally, Zacks Research cut shares of Great Elm Capital Group from a "hold" rating to a "strong sell" rating in a report on Thursday, March 5th. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Reduce" and an average target price of $10.50.

Great Elm Capital Group Trading Down 3.9%

The company has a debt-to-equity ratio of 1.68, a current ratio of 0.24 and a quick ratio of 0.24. The firm's 50 day moving average price is $6.52 and its 200 day moving average price is $7.74. The stock has a market capitalization of $66.36 million, a P/E ratio of -2.06 and a beta of 0.64.

Great Elm Capital Group (NASDAQ:GECC - Get Free Report) last posted its earnings results on Monday, March 2nd. The financial services provider reported $0.31 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.32 by ($0.01). Great Elm Capital Group had a positive return on equity of 13.19% and a negative net margin of 63.59%.The business had revenue of ($39.96) million during the quarter, compared to the consensus estimate of $13.16 million. As a group, equities research analysts expect that Great Elm Capital Group, Inc. will post 1.43 earnings per share for the current fiscal year.

Great Elm Capital Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 25.3%. The ex-dividend date is Monday, March 16th. Great Elm Capital Group's dividend payout ratio (DPR) is currently -52.17%.

Hedge Funds Weigh In On Great Elm Capital Group

A number of hedge funds and other institutional investors have recently made changes to their positions in GECC. Crestwood Advisors Group LLC lifted its stake in Great Elm Capital Group by 95.5% in the third quarter. Crestwood Advisors Group LLC now owns 24,474 shares of the financial services provider's stock worth $245,000 after acquiring an additional 11,956 shares during the period. Squarepoint Ops LLC purchased a new position in Great Elm Capital Group during the 3rd quarter valued at $306,000. Virtu Financial LLC purchased a new position in Great Elm Capital Group during the 3rd quarter valued at $160,000. Schonfeld Strategic Advisors LLC bought a new position in Great Elm Capital Group in the 3rd quarter worth $169,000. Finally, Kestra Private Wealth Services LLC bought a new position in Great Elm Capital Group in the 3rd quarter worth $145,000. Institutional investors 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.