Monroe Capital (NASDAQ:MRCC) Shares Cross Below 200 Day Moving Average - Should You Sell?

Key Points

• Price broke below 200-day moving average: MRCC fell under its 200‑day MA of $6.13, trading as low as $4.91 and last at $5.0490 on a volume of 131,530 shares, signaling technical weakness.
• Street sentiment is negative: Weiss Ratings downgraded the stock to a "sell (d+)" and MarketBeat shows a consensus "Sell" rating from analysts.
• Mixed fundamentals and a high yield: Monroe recently paid a $0.09 quarterly dividend (about a 7.1% yield) despite a negative payout ratio (−156.52%) and negative net margin; it beat the latest quarter's EPS and revenue estimates but has a negative PE (−21.95) and modest market cap (~$109M).

Monroe Capital Corporation (NASDAQ:MRCC - Get Free Report)'s stock price passed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $6.13 and traded as low as $4.91. Monroe Capital shares last traded at $5.0490, with a volume of 131,530 shares changing hands.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings downgraded Monroe Capital from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, April 1st. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat, the stock currently has a consensus rating of "Sell".

Monroe Capital Price Performance

The stock has a fifty day moving average price of $5.26 and a 200-day moving average price of $6.13. The company has a debt-to-equity ratio of 1.15, a quick ratio of 2.35 and a current ratio of 2.35. The firm has a market capitalization of $109.39 million, a PE ratio of -21.95 and a beta of 0.82.

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

Monroe Capital Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 16th were paid a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 7.1%. The ex-dividend date was Monday, March 16th. Monroe Capital's payout ratio is -156.52%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in MRCC. Almitas Capital LLC grew its stake in Monroe Capital by 817.4% during the 4th quarter. Almitas Capital LLC now owns 999,044 shares of the financial services provider's stock worth $6,364,000 after buying an additional 890,139 shares during the last quarter. Bulldog Investors LLP purchased a new position in Monroe Capital during the 3rd quarter worth $4,570,000. Caprock Group LLC purchased a new position in Monroe Capital during the 3rd quarter worth $3,239,000. Quadrant Capital Group LLC grew its stake in Monroe Capital by 2,345.1% during the 4th quarter. Quadrant Capital Group LLC now owns 206,584 shares of the financial services provider's stock worth $1,316,000 after buying an additional 198,135 shares during the last quarter. Finally, Yakira Capital Management Inc. grew its stake in Monroe Capital by 353.9% during the 4th quarter. Yakira Capital Management Inc. now owns 129,809 shares of the financial services provider's stock worth $827,000 after buying an additional 101,210 shares during the last quarter.

Monroe Capital Company Profile

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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