Zacks Research Upgrades Great Elm Capital Group (NASDAQ:GECC) to "Hold"

Key Points

• Zacks Research upgraded Great Elm Capital Group from "strong sell" to "hold" while Clear Street cut it to "hold"; the stock's consensus on MarketBeat remains "Reduce" with an average target price of $10.50.
• Great Elm reported Q1 EPS of $0.36, beating estimates and showing per‑share profitability, but reported negative revenue (~$1.9M) and a -70.13% net margin, reflecting GAAP losses and portfolio mark volatility.
• Management has focused on deleveraging—calling/repurchasing $57.5M of GECCO notes due 2026, leaving no funded debt until 2029 with ~ $10M cash and $50M revolver available—and the board declared a $0.25 quarterly dividend

Great Elm Capital Group (NASDAQ:GECC - Get Free Report) was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Separately, Clear Str lowered Great Elm Capital Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 3rd. Three equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Reduce" and an average target price of $10.50.

Great Elm Capital Group Stock Up 2.7%

NASDAQ:GECC opened at $5.68 on Monday. Great Elm Capital Group has a twelve month low of $4.63 and a twelve month high of $11.45. The firm has a market capitalization of $78.90 million, a price-to-earnings ratio of -2.38 and a beta of 0.72. The company has a quick ratio of 0.24, a current ratio of 0.24 and a debt-to-equity ratio of 1.68. The stock's 50 day moving average price is $5.41 and its two-hundred day moving average price is $6.60.

Great Elm Capital Group (NASDAQ:GECC - Get Free Report) last issued its earnings results on Monday, May 4th. The financial services provider reported $0.36 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.32 by $0.04. Great Elm Capital Group had a negative net margin of 70.13% and a positive return on equity of 13.53%. The company had revenue of ($1.91) million for the quarter, compared to analysts' expectations of $10.74 million. Equities research analysts expect that Great Elm Capital Group will post 0.93 earnings per share for the current fiscal year.

Institutional Trading of Great Elm Capital Group

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Rockefeller Capital Management L.P. bought a new position in Great Elm Capital Group in the 4th quarter valued at about $70,000. Papamarkou Wellner Asset Management inc. boosted its holdings in shares of Great Elm Capital Group by 54.9% during the fourth quarter. Papamarkou Wellner Asset Management inc. now owns 30,200 shares of the financial services provider's stock worth $213,000 after acquiring an additional 10,700 shares during the period. Granby Capital Management LLC bought a new stake in shares of Great Elm Capital Group during the fourth quarter worth approximately $352,000. Squarepoint Ops LLC grew its position in shares of Great Elm Capital Group by 247.9% in the fourth quarter. Squarepoint Ops LLC now owns 106,079 shares of the financial services provider's stock valued at $747,000 after purchasing an additional 75,588 shares during the last quarter. Finally, Jane Street Group LLC acquired a new position in shares of Great Elm Capital Group in the fourth quarter valued at approximately $220,000. Institutional investors own 38.75% of the company's stock.

More Great Elm Capital Group News

Here are the key news stories impacting Great Elm Capital Group this week:

• Positive Sentiment: Board declared a $0.25 quarterly dividend (annualized yield ~18%) and set a June 30 payment date with an ex-dividend/record schedule that supports income-focused investors. Great Elm Capital outlines $0.25 dividend while prioritizing NAV protection and balance sheet deleveraging
• Positive Sentiment: Q1 NII/EPS beat: Net investment income (NII) / EPS of $0.36 topped consensus ($0.23), signaling operating profitability on a per‑share basis despite other headline items. This beat is a primary near-term catalyst. Great Elm Capital (GECC) Q1 Earnings Surpass Estimates
• Positive Sentiment: Balance-sheet deleveraging: Management called/repurchased all $57.5M of GECCO notes due June 2026 and reports no funded debt maturing until 2029, plus ~$10M cash and $50M revolver availability — reduces near-term refinancing risk. Great Elm Capital Corp. Announces First-Quarter 2026 Financial Results
• Positive Sentiment: Investment adviser waived incentive fees (continuing a prior waiver), improving reported NII by ~$0.20 per share and helping preserve distributable cash this quarter. Great Elm Capital Corp. Announces First-Quarter 2026 Financial Results
• Neutral Sentiment: NAV and governance updates: NAV reported $7.74/share as of 3/31 and Jason Reese was appointed CEO — NAV provides a valuation reference for buybacks, while leadership changes are typically a multi‑quarter driver. Great Elm Capital Corp. Announces First-Quarter 2026 Financial Results
• Neutral Sentiment: Share repurchases: The company repurchased ~1% of outstanding shares at an average ~36% discount to March‑31 NAV — supports shares but scale is modest relative to market cap. Great Elm Capital Corp. Announces First-Quarter 2026 Financial Results
• Negative Sentiment: Top-line and margin issues: Reported revenue was negative (~($1.9)M) and the company still shows a negative net margin (loss on GAAP basis), highlighting earnings volatility and underlying portfolio mark movements that could pressure sentiment. Great Elm Capital Q1 earnings summary & transcript

Great Elm Capital Group Company Profile

Great Elm Capital Group, Inc NASDAQ: GECC is a closed-end, externally managed business development company (BDC) that seeks to generate current income and capital appreciation by investing in private, middle-market companies. The firm targets senior secured loans, subordinated debt and equity securities of U.S. companies, with a focus on businesses offering stable cash flows and potential for growth. Industry sectors of interest include business services, consumer products, industrials and healthcare, among others.

GECC's investment strategy emphasizes portfolio diversification and active management.

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