Great Elm Capital Group (NASDAQ:GECC) Stock Price Up 1.1% - Time to Buy?

Key Points

• Share move: GECC rose 1.1% to $5.41 on Monday (intraday high $5.47) on below‑average volume of ~47,380 shares versus a 62,300 average.
• Wall Street view: Analysts have a consensus rating of Reduce (two Holds, two Sells) with an average price target of $10.50 and several recent downgrades including Zacks to "strong sell."
• Financials & dividend risk: The firm shows weak liquidity and profitability (quick/current ratio 0.24, debt/equity 1.68, net margin -63.59%, negative PE) but pays a $0.30 quarterly dividend (22.2% yield), which alongside a negative payout ratio suggests sustainability concerns.

Great Elm Capital Group, Inc. (NASDAQ:GECC - Get Free Report)'s stock price rose 1.1% on Monday . The stock traded as high as $5.47 and last traded at $5.41. Approximately 47,380 shares were traded during trading, a decline of 24% from the average daily volume of 62,300 shares. The stock had previously closed at $5.35.

Wall Street Analyst Weigh In

GECC has been the topic of several analyst reports. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Great Elm Capital Group in a report on Monday, December 29th. Zacks Research downgraded shares of Great Elm Capital Group from a "hold" rating to a "strong sell" rating in a report on Thursday, March 5th. Finally, Clear Str downgraded shares of Great Elm Capital Group from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 3rd. Two equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $10.50.

Great Elm Capital Group Price Performance

The company has a quick ratio of 0.24, a current ratio of 0.24 and a debt-to-equity ratio of 1.68. The firm has a market cap of $75.14 million, a PE ratio of -2.35 and a beta of 0.67. The firm's fifty day simple moving average is $5.61 and its two-hundred day simple moving average is $6.74.

Great Elm Capital Group (NASDAQ:GECC - Get Free Report) last released its earnings results on Monday, March 2nd. The financial services provider reported $0.31 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 company had revenue of ($39.96) million during the quarter, compared to analysts' expectations of $13.16 million. As a group, research analysts expect that Great Elm Capital Group, Inc. will post 0.93 EPS for the current year.

Great Elm Capital Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were issued a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 22.2%. The ex-dividend date of this dividend was Monday, March 16th. Great Elm Capital Group's payout ratio is -52.17%.

Hedge Funds Weigh In On Great Elm Capital Group

Several hedge funds have recently modified their holdings of the stock. Squarepoint Ops LLC lifted its holdings in shares of Great Elm Capital Group by 247.9% in the fourth quarter. Squarepoint Ops LLC now owns 106,079 shares of the financial services provider's stock worth $747,000 after buying an additional 75,588 shares in the last quarter. Granby Capital Management LLC purchased a new position in shares of Great Elm Capital Group in the fourth quarter worth $352,000. Jane Street Group LLC purchased a new position in shares of Great Elm Capital Group in the fourth quarter worth $220,000. Papamarkou Wellner Asset Management inc. lifted its holdings 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 in the last quarter. Finally, Crestwood Advisors Group LLC lifted its holdings in shares of Great Elm Capital Group by 8.8% in the fourth quarter. Crestwood Advisors Group LLC now owns 26,625 shares of the financial services provider's stock worth $188,000 after buying an additional 2,151 shares in the last quarter. Hedge funds and other institutional investors 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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