Great Elm Capital Group (NASDAQ:GECC) Shares Pass Above 50-Day Moving Average - Time to Sell?

Key Points

• GECC shares rose above their 50-day moving average, reaching $6.25 before last trading at $6.11 on volume of 94,802 shares.
• Analyst sentiment remains cautious: three analysts rate the stock Hold and one rates it Sell, producing a consensus “Reduce” rating despite a $10.50 price target.
• Great Elm Capital Group reported quarterly EPS of $0.32, below the $0.35 estimate, while revenue exceeded expectations; it also declared a $0.25 quarterly dividend, implying a 16.4% annualized yield.

Shares of Great Elm Capital Group, Inc. (NASDAQ:GECC - Get Free Report) passed above its fifty day moving average during trading on Monday . The stock has a fifty day moving average of $5.51 and traded as high as $6.25. Great Elm Capital Group shares last traded at $6.11, with a volume of 94,802 shares trading hands.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Zacks Research cut shares of Great Elm Capital Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Weiss Ratings reissued a "sell (d)" rating on shares of Great Elm Capital Group in a research report on Thursday, June 4th. Three investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus price target of $10.50.

Great Elm Capital Group Trading Down 0.3%

The firm has a market cap of $84.87 million, a P/E ratio of -2.07 and a beta of 0.77. The business has a 50 day moving average of $5.51 and a two-hundred day moving average of $5.63. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 1.47.

Great Elm Capital Group (NASDAQ:GECC - Get Free Report) last announced its earnings results on Wednesday, August 5th. The financial services provider reported $0.32 EPS for the quarter, missing the consensus estimate of $0.35 by ($0.03). Great Elm Capital Group had a positive return on equity of 13.87% and a negative net margin of 87.74%.The company had revenue of $14.74 million for the quarter, compared to the consensus estimate of $11.32 million. Analysts predict that Great Elm Capital Group, Inc. will post 1.1 earnings per share for the current year.

Great Elm Capital Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 16.4%. The ex-dividend date of this dividend is Tuesday, September 15th. Great Elm Capital Group's payout ratio is presently -33.90%.

Institutional Investors Weigh In On Great Elm Capital Group

Institutional investors have recently made changes to their positions in the stock. Rangeley Capital LLC acquired a new stake in shares of Great Elm Capital Group during the 1st quarter worth $50,000. Rockefeller Capital Management L.P. acquired a new position in Great Elm Capital Group during the 4th quarter worth approximately $70,000. Kestra Private Wealth Services LLC bought a new position in shares of Great Elm Capital Group in the 3rd quarter valued at $145,000. Virtu Financial LLC bought a new position in Great Elm Capital Group in the third quarter valued at about $160,000. Finally, Schonfeld Strategic Advisors LLC bought a new position in Great Elm Capital Group in the 3rd quarter valued at approximately $169,000. 38.75% of the stock is currently owned by institutional investors.

Great Elm Capital Group Company Profile

Great Elm Capital Group, Inc NASDAQ: GECC is a closed-end, externally managed business development company (BDC) that seeks to generate current income and capital appreciation by investing in private, middle-market companies. The firm targets senior secured loans, subordinated debt and equity securities of U.S. companies, with a focus on businesses offering stable cash flows and potential for growth. Industry sectors of interest include business services, consumer products, industrials and healthcare, among others.

GECC's investment strategy emphasizes portfolio diversification and active management.

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