Great Elm Group, Inc. (NASDAQ:GEG) Sees Significant Growth in Short Interest

Key Points

• Short interest rose 40.7% in March to 215,579 shares, equal to about 1.3% of shares short and a days-to-cover of 8.6, signaling elevated shorting pressure.
• Great Elm reported a loss of ($0.50) EPS last quarter with a negative return on equity (−37.04%) and net margin (−60.61%), and has a market cap of roughly $68.2 million with shares trading near $2.
• Weiss Ratings downgraded the stock to a Sell, while institutional ownership stands at 52.83%, including a large stake increase by Goldman Sachs to 919,048 shares.

Great Elm Group, Inc. (NASDAQ:GEG - Get Free Report) was the target of a large growth in short interest in March. As of March 31st, there was short interest totaling 215,579 shares, a growth of 40.7% from the March 15th total of 153,173 shares. Currently, 1.3% of the shares of the stock are short sold. Based on an average daily volume of 25,154 shares, the days-to-cover ratio is presently 8.6 days.

Great Elm Group Stock Up 4.2%

Great Elm Group stock opened at $2.08 on Wednesday. Great Elm Group has a one year low of $1.80 and a one year high of $3.51. The company has a 50-day simple moving average of $2.00 and a 200-day simple moving average of $2.30. The company has a debt-to-equity ratio of 1.04, a quick ratio of 10.32 and a current ratio of 10.32. The firm has a market capitalization of $68.23 million, a P/E ratio of -3.86 and a beta of 0.54.

Great Elm Group (NASDAQ:GEG - Get Free Report) last posted its quarterly earnings results on Wednesday, February 4th. The company reported ($0.50) earnings per share (EPS) for the quarter. Great Elm Group had a negative return on equity of 37.04% and a negative net margin of 60.61%.The company had revenue of $3.01 million during the quarter.

Wall Street Analyst Weigh In

Separately, Weiss Ratings downgraded Great Elm Group from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, February 5th. One analyst has rated the stock with a Sell rating, According to MarketBeat, Great Elm Group has an average rating of "Sell".

Institutional Trading of Great Elm Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Millennium Management LLC bought a new position in shares of Great Elm Group in the 3rd quarter valued at about $158,000. Rockefeller Capital Management L.P. bought a new stake in shares of Great Elm Group during the fourth quarter worth approximately $447,000. Geode Capital Management LLC lifted its holdings in Great Elm Group by 17.1% in the fourth quarter. Geode Capital Management LLC now owns 180,866 shares of the company's stock valued at $461,000 after buying an additional 26,460 shares during the period. Finally, Goldman Sachs Group Inc. boosted its stake in Great Elm Group by 2,377.7% in the fourth quarter. Goldman Sachs Group Inc. now owns 919,048 shares of the company's stock valued at $2,344,000 after acquiring an additional 881,955 shares during the last quarter. 52.83% of the stock is currently owned by institutional investors and hedge funds.

About Great Elm Group

Great Elm Group NASDAQ: GEG is a closed-end investment company specializing in private credit and equity co-investments for U.S. middle-market companies. The firm's portfolio is composed primarily of senior secured loans, unitranche financing structures and selective equity interests, with an emphasis on providing flexible capital solutions for growth initiatives, refinancings, acquisitions and recapitalizations.

Through a disciplined underwriting process, Great Elm Group evaluates opportunities across a diverse range of industry sectors, including healthcare, business services, manufacturing and consumer products.

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