Monroe Capital Corporation (NASDAQ:MRCC) Short Interest Update

Key Points

• Short interest surged 67.1% in March to 283,975 shares (about 1.4% of shares outstanding) with a days-to-cover of 1.3, signaling increased bearish positioning.
• Monroe declared a quarterly dividend of $0.09 (annualized $0.36) for an 8.0% yield, but the dividend payout ratio is -156.52%, indicating it is not supported by current earnings.
• The company beat quarterly estimates with $0.11 EPS vs. $0.09 expected and $8.16M revenue, yet reported a negative net margin (-13.52%); the stock trades around $4.50 with a market cap near $97.5M.

Monroe Capital Corporation (NASDAQ:MRCC - Get Free Report) was the recipient of a large increase in short interest in March. As of March 13th, there was short interest totaling 283,975 shares, an increase of 67.1% from the February 26th total of 169,990 shares. Based on an average daily trading volume, of 219,783 shares, the days-to-cover ratio is presently 1.3 days. Approximately 1.4% of the company's shares are short sold.

Institutional Investors Weigh In On Monroe Capital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MRCC. Advisory Services Network LLC bought a new position in Monroe Capital during the third quarter worth about $37,000. Kestra Advisory Services LLC bought a new stake in shares of Monroe Capital in the 4th quarter valued at about $35,000. HB Wealth Management LLC acquired a new stake in shares of Monroe Capital in the 3rd quarter valued at approximately $79,000. Argos Wealth Advisors LLC bought a new position in Monroe Capital during the 4th quarter worth approximately $75,000. Finally, Mission Wealth Management LP bought a new position in Monroe Capital during the 3rd quarter worth approximately $87,000.

Monroe Capital Trading Down 3.0%

Shares of NASDAQ MRCC traded down $0.14 during mid-day trading on Friday, hitting $4.50. The company's stock had a trading volume of 94,380 shares, compared to its average volume of 118,659. Monroe Capital has a one year low of $4.04 and a one year high of $7.92. The company's fifty day simple moving average is $5.70 and its 200-day simple moving average is $6.37. The company has a debt-to-equity ratio of 1.15, a current ratio of 2.35 and a quick ratio of 2.35. The stock has a market cap of $97.52 million, a price-to-earnings ratio of -19.57 and a beta of 0.75.

Monroe Capital (NASDAQ:MRCC - Get Free Report) last posted its quarterly earnings results on Thursday, March 5th. The financial services provider reported $0.11 earnings per share for the quarter, topping analysts' consensus estimates of $0.09 by $0.02. Monroe Capital had a negative net margin of 13.52% and a positive return on equity of 6.59%. The business had revenue of $8.16 million during the quarter, compared to the consensus estimate of $7.90 million. On average, sell-side analysts anticipate that Monroe Capital will post 1.14 earnings per share for the current fiscal year.

Monroe Capital Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th will be paid a $0.09 dividend. The ex-dividend date of this dividend is Monday, March 16th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 8.0%. Monroe Capital's dividend payout ratio is -156.52%.

Analyst Ratings Changes

Separately, Weiss Ratings raised Monroe Capital from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, March 18th. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, the company currently has an average rating of "Hold".

About Monroe Capital

Monroe Capital Corporation NASDAQ: MRCC is a publicly traded business development company that specializes in providing flexible debt financing solutions to middle-market companies across North America. The firm structures and underwrites a range of senior secured loans, unitranche financings, second-lien loans, mezzanine debt and equity co-investments. Monroe Capital's offerings are designed to support corporate growth, acquisitions, recapitalizations and refinancings across diverse industries, including business services, healthcare, manufacturing and specialty finance.

Headquartered in Chicago, Illinois, Monroe Capital was founded in 2004 and has since built a national footprint by maintaining offices in key U.S.

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