Great Elm Group (NASDAQ:GEG) Trading Down 1.6% - Should You Sell?

Key Points

• Shares of Great Elm Group fell about 1.6% to $1.87 on Tuesday on light volume (20,361 shares, ~67% below average) and are trading below their 50‑day ($2.05) and 200‑day ($2.36) moving averages; Wall Street consensus and Weiss Ratings have the stock rated Sell.
• Fundamentals are weak — the company reported -$0.50 EPS, a negative net margin of 60.61% and negative ROE of 37.04% — but it shows strong short‑term liquidity (quick/current ratio 10.32) and has 52.83% institutional ownership with recent sizable buys from Goldman Sachs and Rockefeller.

Great Elm Group, Inc. (NASDAQ:GEG - Get Free Report) dropped 1.6% during trading on Tuesday . The stock traded as low as $1.85 and last traded at $1.87. Approximately 20,361 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 62,463 shares. The stock had previously closed at $1.90.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings cut shares of Great Elm Group from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, February 5th. One analyst has rated the stock with a Sell rating, According to MarketBeat.com, the stock currently has a consensus rating of "Sell".

Great Elm Group Stock Performance

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 cap of $61.22 million, a P/E ratio of -3.46 and a beta of 0.45. The business's 50-day simple moving average is $2.05 and its 200 day simple moving average is $2.36.

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

Hedge Funds Weigh In On Great Elm Group

Institutional investors have recently made changes to their positions in the business. Rockefeller Capital Management L.P. purchased a new position in shares of Great Elm Group in the fourth quarter worth approximately $447,000. Goldman Sachs Group Inc. increased its holdings in Great Elm Group by 2,377.7% during the fourth quarter. Goldman Sachs Group Inc. now owns 919,048 shares of the company's stock valued at $2,344,000 after buying an additional 881,955 shares during the last quarter. Geode Capital Management LLC raised its position 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 worth $461,000 after acquiring an additional 26,460 shares during the period. Finally, Millennium Management LLC bought a new position in Great Elm Group in the third quarter worth approximately $158,000. Institutional investors own 52.83% of the company's stock.

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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