Great Elm Capital Group (NASDAQ:GECC) Stock Crosses Above 50-Day Moving Average - Should You Sell?

Key Points

• GECC shares rose above their 50-day moving average, reaching $5.98 before trading near $5.83, compared with a 50-day average of $5.48.
• Analyst sentiment remains cautious: three analysts rate the stock Hold and one rates it Sell, producing a consensus “Reduce” rating despite a $10.50 target price.
• The company reported quarterly EPS of $0.32, below the $0.35 estimate, while revenue exceeded expectations. GECC declared a $0.25 quarterly dividend, equivalent to a $1.00 annual payout and a 17.2% yield.

Great Elm Capital Group, Inc. (NASDAQ:GECC - Get Free Report) shares crossed above its fifty day moving average during trading on Thursday . The stock has a fifty day moving average of $5.48 and traded as high as $5.98. Great Elm Capital Group shares last traded at $5.83, with a volume of 99,589 shares traded.

Wall Street Analysts Forecast Growth

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

Great Elm Capital Group Price Performance

The company has a debt-to-equity ratio of 1.47, a current ratio of 0.93 and a quick ratio of 0.93. The stock has a 50 day simple moving average of $5.48 and a two-hundred day simple moving average of $5.71. The company has a market cap of $80.98 million, a price-to-earnings ratio of -1.98 and a beta of 0.77.

Great Elm Capital Group (NASDAQ:GECC - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The financial services provider reported $0.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.35 by ($0.03). The firm had revenue of $14.74 million for the quarter, compared to analyst estimates of $11.32 million. Great Elm Capital Group had a positive return on equity of 13.87% and a negative net margin of 87.74%. On average, equities research analysts predict that Great Elm Capital Group, Inc. will post 1.1 earnings per share for the current fiscal year.

Great Elm Capital Group Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be issued a dividend of $0.25 per share. The ex-dividend date is Tuesday, September 15th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 17.2%. Great Elm Capital Group's dividend payout ratio is currently -33.90%.

Institutional Trading of Great Elm Capital Group

Institutional investors have recently added to or reduced their stakes in the stock. Rangeley Capital LLC purchased a new stake in shares of Great Elm Capital Group in the 1st quarter valued at $50,000. Rockefeller Capital Management L.P. acquired a new stake in shares of Great Elm Capital Group in the 4th quarter valued at $70,000. Kestra Private Wealth Services LLC purchased a new stake in Great Elm Capital Group during the 3rd quarter worth about $145,000. Virtu Financial LLC purchased a new stake in Great Elm Capital Group during the third quarter worth approximately $160,000. Finally, Schonfeld Strategic Advisors LLC purchased a new stake in shares of Great Elm Capital Group during the 3rd quarter worth approximately $169,000. Institutional investors and hedge funds own 38.75% of the company's stock.

About Great Elm Capital Group

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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