SLR Investment (NASDAQ:SLRC) Releases Earnings Results, Misses Expectations By $0.18 EPS

Key Points

• SLR Investment missed quarterly expectations: The company reported EPS of $0.15, $0.18 below consensus, while revenue of $20.50 million fell well short of the $48.82 million estimate.
• Despite the earnings miss, shares rose 1.4% to $13.18 during Tuesday trading. The stock remains below its 52-week high of $16.83 and has a market capitalization of approximately $719 million.
• Analyst sentiment is cautious: Several firms recently downgraded SLRC, with the stock receiving an overall “Reduce” rating and an average price target of $14.10. An insider also purchased 10,000 shares, while institutional investors own 35.32% of the company.

SLR Investment (NASDAQ:SLRC - Get Free Report) posted its quarterly earnings results on Tuesday. The financial services provider reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.33 by ($0.18), FiscalAI reports. SLR Investment had a return on equity of 8.33% and a net margin of 41.81%.The company had revenue of $20.50 million for the quarter, compared to the consensus estimate of $48.82 million.

SLR Investment Stock Up 1.4%

NASDAQ SLRC traded up $0.18 during trading hours on Tuesday, reaching $13.18. 408,451 shares of the company's stock traded hands, compared to its average volume of 384,892. SLR Investment has a 52-week low of $12.13 and a 52-week high of $16.83. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.04 and a quick ratio of 1.04. The firm has a 50-day simple moving average of $12.80 and a 200 day simple moving average of $14.02. The firm has a market cap of $719.03 million, a PE ratio of 8.04 and a beta of 0.64.

Insiders Place Their Bets

In other SLR Investment news, insider Michael S. Gross bought 10,000 shares of the firm's stock in a transaction on Tuesday, May 12th. The stock was acquired at an average price of $13.09 per share, with a total value of $130,900.00. Following the completion of the purchase, the insider owned 4,035,153 shares of the company's stock, valued at approximately $52,820,152.77. This trade represents a 0.25% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 8.80% of the company's stock.

Institutional Trading of SLR Investment

A number of hedge funds have recently made changes to their positions in SLRC. Acadian Asset Management LLC increased its position in SLR Investment by 173.3% during the 1st quarter. Acadian Asset Management LLC now owns 16,702 shares of the financial services provider's stock valued at $280,000 after buying an additional 10,591 shares in the last quarter. Cetera Investment Advisers boosted its holdings in SLR Investment by 11.7% in the second quarter. Cetera Investment Advisers now owns 40,901 shares of the financial services provider's stock worth $660,000 after acquiring an additional 4,295 shares in the last quarter. Quantbot Technologies LP bought a new stake in SLR Investment in the second quarter worth $190,000. Invesco Ltd. grew its stake in shares of SLR Investment by 18.0% in the second quarter. Invesco Ltd. now owns 42,469 shares of the financial services provider's stock worth $685,000 after acquiring an additional 6,464 shares during the last quarter. Finally, Jump Financial LLC purchased a new stake in shares of SLR Investment in the second quarter worth $782,000. 35.32% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on SLRC. Wall Street Zen cut SLR Investment from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. Weiss Ratings downgraded shares of SLR Investment from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, July 28th. JPMorgan Chase & Co. cut their price objective on SLR Investment from $13.50 to $12.00 and set an "underweight" rating on the stock in a research report on Thursday, July 2nd. Wells Fargo & Company reduced their target price on SLR Investment from $12.00 to $11.00 and set an "underweight" rating on the stock in a report on Thursday, May 7th. Finally, Zacks Research lowered SLR Investment from a "hold" rating to a "strong sell" rating in a research report on Friday, May 8th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $14.10.

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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