SLR Investment (NASDAQ:SLRC) Announces Earnings Results, Misses Expectations By $0.07 EPS

Key Points

• Earnings and revenue miss: SLR reported EPS of $0.33 versus a $0.40 consensus (miss of $0.07) and revenue of $47.14M versus $54.01M expected.
• Stock plunged 12.4% on heavy volume: shares fell to $13.98 with ~1.85M traded (vs. average 339k), market cap about $763M and a P/E of 8.25.
• High dividend yield and payout ratio: the company declared a $0.31 quarterly dividend (annualized $1.24) yielding ~8.9% with a payout ratio near 96%, while analysts’ consensus rating is “Hold” with a $15.29 target.

SLR Investment (NASDAQ:SLRC - Get Free Report) released its earnings results on Tuesday. The financial services provider reported $0.33 earnings per share for the quarter, missing analysts' consensus estimates of $0.40 by ($0.07), Zacks reports. The firm had revenue of $47.14 million during the quarter, compared to the consensus estimate of $54.01 million. SLR Investment had a return on equity of 8.76% and a net margin of 42.34%.

SLR Investment Stock Down 12.4%

Shares of NASDAQ SLRC traded down $1.99 during trading on Wednesday, reaching $13.98. The company had a trading volume of 1,852,943 shares, compared to its average volume of 339,405. SLR Investment has a 12-month low of $13.61 and a 12-month high of $17.19. The stock has a market cap of $762.97 million, a PE ratio of 8.25 and a beta of 0.71. The business's 50-day moving average is $14.86 and its 200 day moving average is $15.14. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 1.15.

SLR Investment Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, June 12th will be paid a $0.31 dividend. This represents a $1.24 dividend on an annualized basis and a dividend yield of 8.9%. The ex-dividend date of this dividend is Friday, June 12th. SLR Investment's dividend payout ratio is currently 96.47%.

Analyst Ratings Changes

SLRC has been the subject of a number of recent research reports. JPMorgan Chase & Co. dropped their target price on SLR Investment from $15.00 to $14.00 and set an "underweight" rating for the company in a research report on Friday, March 13th. Compass Point raised SLR Investment from a "neutral" rating to a "buy" rating and set a $16.50 target price on the stock in a research note on Tuesday, March 10th. Raymond James Financial set a $16.00 target price on SLR Investment and gave the company an "outperform" rating in a research note on Wednesday, February 25th. Wall Street Zen raised SLR Investment from a "sell" rating to a "hold" rating in a research note on Sunday, April 12th. Finally, Keefe, Bruyette & Woods reduced their price target on SLR Investment from $16.50 to $15.00 and set a "market perform" rating on the stock in a research note on Monday, March 30th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $15.29.

Insider Activity at SLR Investment

In related news, insider Michael S. Gross bought 10,452 shares of the business's stock in a transaction dated Monday, March 16th. The shares were purchased at an average cost of $13.90 per share, with a total value of $145,282.80. Following the completion of the purchase, the insider owned 4,025,153 shares in the company, valued at approximately $55,949,626.70. The trade was a 0.26% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 8.80% of the company's stock.

Institutional Investors Weigh In On SLR Investment

Institutional investors have recently modified their holdings of the stock. BNP Paribas Financial Markets grew its stake in shares of SLR Investment by 1,389.8% in the third quarter. BNP Paribas Financial Markets now owns 1,758 shares of the financial services provider's stock worth $27,000 after acquiring an additional 1,640 shares during the last quarter. Russell Investments Group Ltd. purchased a new stake in shares of SLR Investment in the third quarter worth $48,000. Kestra Advisory Services LLC purchased a new stake in shares of SLR Investment in the fourth quarter worth $110,000. Advisory Services Network LLC purchased a new stake in shares of SLR Investment in the third quarter worth $143,000. Finally, Mariner LLC purchased a new stake in shares of SLR Investment in the fourth quarter worth $179,000. 35.32% of the stock is owned by hedge funds and other institutional investors.

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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