Portman Ridge Finance (NASDAQ:BCIC) Announces Earnings Results

Key Points

• Portman Ridge reported $0.55 EPS for the quarter versus consensus $0.32, with a 12.9% ROE and 18.8% net margin; the stock traded at $7.86, has a market cap of $97.3M and a P/E of 13.8.
• The firm declared a monthly dividend of $0.09 (record June 15, paid June 30), implying a 13.7% yield but a very high payout ratio of ~189%, raising sustainability concerns.
• Analyst sentiment is weak—MarketBeat shows a consensus rating of “Reduce” with a $9 target after several downgrades—and insiders have been selling shares (27,378 by a director; 80,021 sold in the past 90 days).

Portman Ridge Finance (NASDAQ:BCIC - Get Free Report) issued its earnings results on Thursday. The company reported $0.55 EPS for the quarter, beating analysts' consensus estimates of $0.32 by $0.23, Zacks reports. Portman Ridge Finance had a return on equity of 12.91% and a net margin of 18.79%.

Portman Ridge Finance Price Performance

Shares of NASDAQ BCIC traded down $0.04 during trading hours on Thursday, hitting $7.86. 90,790 shares of the company's stock were exchanged, compared to its average volume of 99,021. Portman Ridge Finance has a 1-year low of $7.11 and a 1-year high of $13.50. The company has a debt-to-equity ratio of 1.47, a current ratio of 2.52 and a quick ratio of 2.52. The stock has a market cap of $97.31 million, a PE ratio of 13.79 and a beta of 0.51. The firm has a 50-day moving average of $8.42.

Portman Ridge Finance Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be given a dividend of $0.09 per share. This represents a c) annualized dividend and a dividend yield of 13.7%. The ex-dividend date of this dividend is Monday, June 15th. Portman Ridge Finance's payout ratio is currently 189.47%.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on BCIC. Zacks Research downgraded Portman Ridge Finance from a "hold" rating to a "strong sell" rating in a research note on Wednesday, March 11th. Wall Street Zen upgraded Portman Ridge Finance from a "sell" rating to a "hold" rating in a research note on Wednesday, March 18th. Keefe, Bruyette & Woods decreased their price target on Portman Ridge Finance from $14.00 to $9.00 and set a "market perform" rating for the company in a research note on Tuesday, March 10th. Weiss Ratings downgraded Portman Ridge Finance from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, February 23rd. Finally, LADENBURG THALM/SH SH downgraded Portman Ridge Finance from a "buy" rating to a "neutral" rating in a research note on Monday, March 9th. Two investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Portman Ridge Finance currently has a consensus rating of "Reduce" and a consensus target price of $9.00.

Insider Buying and Selling at Portman Ridge Finance

In related news, Director Dean C. Kehler sold 27,378 shares of the business's stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $7.60, for a total transaction of $208,072.80. Following the completion of the transaction, the director owned 57,749 shares of the company's stock, valued at approximately $438,892.40. The trade was a 32.16% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last ninety days, insiders sold 80,021 shares of company stock worth $652,828. 2.11% of the stock is currently owned by insiders.

About Portman Ridge Finance

Portman Ridge Finance Corporation is a business development company specializing in investments in unitranche loans (including last out), first lien loans, second lien loans, subordinated debt, equity co-investment, buyout in middle market companies. It also makes acquisitions in businesses complementary to the firm's business. It primarily invests in healthcare, cargo transport, manufacturing, industrial & environmental services, logistics & distribution, media & telecommunications, real estate, education, automotive, agriculture, aerospace/defense, packaging, electronics, finance, non-durable consumer, consumer products, business services, utilities, insurance, and food and beverage sectors.

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