Great Elm Capital Group (NASDAQ:GECC) Shares Pass Below 50-Day Moving Average - Should You Sell?

Great Elm Capital Group, Inc. (NASDAQ:GECC - Get Free Report) crossed below its 50-day moving average during trading on Thursday . The stock has a 50-day moving average of $5.64 and traded as low as $5.24. Great Elm Capital Group shares last traded at $5.44, with a volume of 78,643 shares changing hands.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on GECC. Zacks Research cut shares of Great Elm Capital Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Great Elm Capital Group in a report on Tuesday, September 1st. Three investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Great Elm Capital Group currently has a consensus rating of "Reduce" and an average target price of $10.50.

Great Elm Capital Group Stock Performance

The stock has a market capitalization of $75.56 million, a PE ratio of -1.84 and a beta of 0.78. The firm's fifty day moving average is $5.64 and its 200-day moving average is $5.57. 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 quarterly earnings results on Wednesday, August 5th. The financial services provider reported $0.32 earnings per share for the quarter, missing analysts' consensus estimates of $0.35 by ($0.03). The company had revenue of $14.74 million for the quarter, compared to analyst estimates of $11.32 million. Great Elm Capital Group had a negative net margin of 87.74% and a positive return on equity of 13.87%. As a group, research analysts anticipate that Great Elm Capital Group, Inc. will post 1.1 earnings per share for the current year.

Great Elm Capital Group Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 18.4%. The ex-dividend date of this dividend is Tuesday, September 15th. Great Elm Capital Group's payout ratio is currently -33.90%.

Institutional Investors Weigh In On Great Elm Capital Group

A number of hedge funds have recently added to or reduced their stakes in the business. Rangeley Capital LLC acquired a new position in shares of Great Elm Capital Group in the first quarter worth $50,000. Rockefeller Capital Management L.P. acquired a new stake in shares of Great Elm Capital Group in the fourth quarter valued at $70,000. Finally, Granby Capital Management LLC acquired a new stake in shares of Great Elm Capital Group in the fourth quarter valued at $352,000. 38.75% of the stock is currently owned by institutional investors and hedge funds.

About Great Elm Capital Group

Great Elm Capital Corp. NASDAQ: GECC is a business development company that provides financing and investment capital to middle-market companies. The company primarily seeks to invest in debt securities, including senior secured loans, subordinated debt and other forms of structured credit, while also making equity investments when appropriate.

Great Elm Capital generally works with companies that may have limited access to traditional bank financing. Its investment activities are focused primarily on businesses in the United States and are designed to provide companies with capital for acquisitions, growth initiatives, recapitalizations, refinancing and other general corporate purposes.

The company was formerly known as Full Circle Capital Corp.

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