Monroe Capital Corporation (NASDAQ:MRCC) Sees Significant Growth in Short Interest

Key Points

• Monroe Capital Corporation (NASDAQ:MRCC) experienced a significant increase in short interest of 43.8% in September, with total short interest reaching 131,000 shares.
• The company reported $0.15 earnings per share for the latest quarter, missing analysts' expectations of $0.21, with revenue also falling short at $9.87 million.
• Monroe Capital declared a quarterly dividend of $0.25 per share, yielding approximately 14.6% and reflecting a high dividend payout ratio of 1,111.11%.

Monroe Capital Corporation (NASDAQ:MRCC - Get Free Report) was the target of a large increase in short interest in September. As of September 30th, there was short interest totaling 131,000 shares, an increase of 43.8% from the September 15th total of 91,100 shares. Approximately 0.6% of the shares of the stock are sold short. Based on an average daily volume of 101,200 shares, the days-to-cover ratio is presently 1.3 days. Based on an average daily volume of 101,200 shares, the days-to-cover ratio is presently 1.3 days. Approximately 0.6% of the shares of the stock are sold short.

Monroe Capital Trading Up 0.2%

NASDAQ:MRCC traded up $0.01 during trading hours on Thursday, hitting $6.87. 15,830 shares of the company were exchanged, compared to its average volume of 83,045. The company has a fifty day simple moving average of $7.21 and a 200 day simple moving average of $6.79. Monroe Capital has a one year low of $5.96 and a one year high of $8.85. The stock has a market capitalization of $148.89 million, a price-to-earnings ratio of 76.61 and a beta of 0.92. The company has a current ratio of 4.02, a quick ratio of 4.02 and a debt-to-equity ratio of 1.16.

Monroe Capital (NASDAQ:MRCC - Get Free Report) last released its earnings results on Monday, August 11th. The financial services provider reported $0.15 earnings per share for the quarter, missing analysts' consensus estimates of $0.21 by ($0.06). The firm had revenue of $9.87 million for the quarter, compared to analyst estimates of $12.38 million. Monroe Capital had a net margin of 3.74% and a return on equity of 10.70%. Sell-side analysts expect that Monroe Capital will post 1.14 EPS for the current fiscal year.

Monroe Capital Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Monday, September 22nd were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Monday, September 22nd. This represents a $1.00 dividend on an annualized basis and a yield of 14.6%. Monroe Capital's dividend payout ratio is 1,111.11%.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Ascent Group LLC acquired a new stake in Monroe Capital during the first quarter worth approximately $80,000. Wealth Enhancement Advisory Services LLC bought a new position in shares of Monroe Capital during the 1st quarter worth approximately $84,000. Pandora Wealth Inc. acquired a new stake in shares of Monroe Capital during the 1st quarter worth approximately $113,000. Aspiriant LLC increased its stake in shares of Monroe Capital by 35.7% in the 2nd quarter. Aspiriant LLC now owns 19,000 shares of the financial services provider's stock valued at $121,000 after acquiring an additional 5,000 shares in the last quarter. Finally, Osaic Holdings Inc. lifted its position in shares of Monroe Capital by 35.3% during the 2nd quarter. Osaic Holdings Inc. now owns 26,250 shares of the financial services provider's stock valued at $167,000 after acquiring an additional 6,845 shares during the period.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Monroe Capital in a research note on Wednesday, October 8th. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Monroe Capital currently has a consensus rating of "Reduce" and a consensus target price of $7.63.

Monroe Capital Company Profile

Monroe Capital Corporation is a business development company specializing in customized financing solutions in senior, unitranche and junior secured debt, subordinated debt financing and to a lesser extent, unsecured debt and equity, including equity co-investments in preferred and common stock and warrants.

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