SLR Investment (NASDAQ:SLRC) Sees Large Volume Increase - Here's Why

Key Points

• SLRC trading volume surged 294% to 1.49 million shares, while the stock traded near $13.02, above its previous close of $12.93.
• Analyst sentiment is largely negative: the consensus rating is “Reduce,” with three Sell, two Hold, and two Buy ratings and an average price target of $14.10. Several firms recently lowered their targets or downgraded the stock.
• SLR Investment missed quarterly estimates, reporting $0.33 in earnings per share versus $0.40 expected and revenue of $47.14 million versus $54.01 million forecast. The company pays a $0.31 quarterly dividend, equal to a 9.6% annualized yield.

SLR Investment Corp. (NASDAQ:SLRC - Get Free Report) shares saw strong trading volume on Tuesday . 1,490,090 shares changed hands during mid-day trading, an increase of 294% from the previous session's volume of 378,540 shares.The stock last traded at $13.0240 and had previously closed at $12.93.

Analyst Upgrades and Downgrades

Several brokerages recently commented on SLRC. Wells Fargo & Company dropped their price target on SLR Investment from $12.00 to $11.00 and set an "underweight" rating for the company in a research report on Thursday, May 7th. Wall Street Zen lowered shares of SLR Investment from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. Weiss Ratings restated a "hold (c)" rating on shares of SLR Investment in a report on Friday, June 12th. Zacks Research downgraded SLR Investment from a "hold" rating to a "strong sell" rating in a research report on Friday, May 8th. Finally, Keefe, Bruyette & Woods dropped their target price on SLR Investment from $16.50 to $15.00 and set a "market perform" rating for the company in a report on Monday, March 30th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $14.10.

SLR Investment Stock Performance

The firm has a 50 day moving average price of $12.82 and a 200-day moving average price of $14.10. 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 market capitalization of $707.10 million, a price-to-earnings ratio of 7.90 and a beta of 0.64.

SLR Investment (NASDAQ:SLRC - Get Free Report) last issued its earnings results on Tuesday, May 5th. The financial services provider reported $0.33 EPS for the quarter, missing analysts' consensus estimates of $0.40 by ($0.07). The firm had revenue of $47.14 million for the quarter, compared to analyst estimates of $54.01 million. SLR Investment had a return on equity of 8.33% and a net margin of 41.81%. As a group, sell-side analysts expect that SLR Investment Corp. will post 1.33 earnings per share for the current fiscal year.

SLR Investment Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, June 12th were paid a $0.31 dividend. The ex-dividend date was Friday, June 12th. This represents a $1.24 dividend on an annualized basis and a yield of 9.6%. SLR Investment's payout ratio is currently 75.61%.

Insider Activity

In related news, insider Michael S. Gross purchased 10,000 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were purchased at an average price of $13.09 per share, with a total value of $130,900.00. Following the completion of the acquisition, the insider directly owned 4,035,153 shares in the company, valued at $52,820,152.77. This represents a 0.25% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 8.80% of the stock is currently owned by corporate insiders.

Institutional Trading of SLR Investment

A number of hedge funds have recently added to or reduced their stakes in SLRC. Kelleher Financial Advisors acquired a new position in shares of SLR Investment in the fourth quarter valued at approximately $26,000. BNP Paribas Financial Markets grew its position in SLR Investment by 1,389.8% in 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 during the last quarter. International Assets Investment Management LLC acquired a new position in SLR Investment in the 4th quarter valued at $42,000. Russell Investments Group Ltd. acquired a new position in SLR Investment in the 3rd quarter valued at $48,000. Finally, Greykasell Wealth Strategies Inc. purchased a new position in SLR Investment during the 4th quarter worth $59,000. 35.32% of the stock is owned by institutional investors and hedge funds.

SLR Investment Company Profile

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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