SLR Investment Corp. (NASDAQ:SLRC) Declares Quarterly Dividend of $0.31

Key Points

• Quarterly dividend of $0.31 declared, payable June 26 to shareholders of record on June 12, representing an annualized $1.64 and a roughly 7.8% dividend yield.
• SLR's dividend payout ratio is about 100.6%, and analysts forecast ~ $1.60 EPS next year (below the $1.64 annual dividend), suggesting the dividend may not be coverable by earnings and could rely on the balance sheet.
• SLR missed recent quarter expectations with EPS $0.33 vs. $0.40 est. and revenue $47.14M vs. $54.01M, while insider Michael S. Gross bought 25,000 shares in March.

SLR Investment Corp. (NASDAQ:SLRC - Get Free Report) announced a quarterly dividend on Tuesday, May 5th. Investors of record on Friday, June 12th will be given a dividend of 0.31 per share by the financial services provider on Friday, June 26th. This represents a c) annualized dividend and a dividend yield of 7.8%. The ex-dividend date of this dividend is Friday, June 12th.

SLR Investment has a dividend payout ratio of 100.6% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect SLR Investment to earn $1.60 per share next year, which means the company may not be able to cover its $1.64 annual dividend with an expected future payout ratio of 102.5%.

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SLR Investment Trading Up 0.2%

SLR Investment stock opened at $15.97 on Wednesday. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.04 and a quick ratio of 1.04. SLR Investment has a one year low of $13.78 and a one year high of $17.19. The stock has a market capitalization of $871.32 million, a PE ratio of 9.39 and a beta of 0.71. The business's fifty day moving average is $14.86 and its 200 day moving average is $15.14.

SLR Investment (NASDAQ:SLRC - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The financial services provider reported $0.33 EPS for the quarter, missing the consensus estimate of $0.40 by ($0.07). SLR Investment had a net margin of 42.34% and a return on equity of 8.76%. The business had revenue of $47.14 million for the quarter, compared to analysts' expectations of $54.01 million. On average, sell-side analysts predict that SLR Investment will post 1.62 EPS for the current year.

Insider Buying and Selling at SLR Investment

In related news, insider Michael S. Gross acquired 25,000 shares of the stock in a transaction dated Friday, March 13th. The shares were purchased at an average cost of $13.91 per share, with a total value of $347,750.00. Following the transaction, the insider directly owned 4,014,701 shares in the company, valued at approximately $55,844,490.91. This represents a 0.63% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 8.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Kelleher Financial Advisors purchased a new position in shares of SLR Investment during the 4th quarter valued at $26,000. BNP Paribas Financial Markets lifted its stake in shares of SLR Investment by 1,389.8% during the 3rd quarter. BNP Paribas Financial Markets now owns 1,758 shares of the financial services provider's stock valued at $27,000 after buying an additional 1,640 shares in the last quarter. CWM LLC lifted its holdings in SLR Investment by 215.6% in the 3rd quarter. CWM LLC now owns 2,367 shares of the financial services provider's stock worth $36,000 after purchasing an additional 1,617 shares in the last quarter. State of Alaska Department of Revenue purchased a new position in SLR Investment in the 3rd quarter worth approximately $38,000. Finally, International Assets Investment Management LLC purchased a new position in SLR Investment in the 4th quarter worth approximately $42,000. Hedge funds and other institutional investors own 35.32% of the company's stock.

About SLR Investment

SLR Investment Corp. NASDAQ: SLRC is a closed‐end, externally managed business development company that provides customized debt and equity financing solutions to middle‐market companies. The firm seeks to generate current income and capital appreciation by investing primarily in senior secured loans, second lien financings, mezzanine debt and equity co‐investments. Its flexible capital approach allows it to structure financing across the capital structure to address a range of sponsor‐backed transactions.

SLR Investment Corp.

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