National Securities cut shares of Triangle Capital Corporation (NYSE:TCAP) from a buy rating to a neutral rating in a research note issued to investors on Monday. National Securities currently has $18.00 target price on the credit services provider’s stock, down from their previous target price of $22.00.
“• TCAP reported NII/share of $0.41 versus our estimate of $0.44 and the dividend of $0.45. Total non-accruals at cost (including PIK) increased to $94.1 million or 7.5% of the portfolio from $68.2 million or 5.7% of the portfolio Q/Q. The worrisome trend continues to get worse and the pattern of PIK non-accruals turning into full cash non-accruals has been maintained as well. We do not expect this to resolve itself any time soon and as a result we think the non-accruals will continue to weigh on all-in effective yields on the portfolio, causing TCAP to continue to under-earn the dividend and eventually force them to cut it to $0.39/share in 1Q18.
• NAV/share decreased by 3% Q/Q to $14.85 from $15.29, generating an annualized economic return of 0.1%. We expect this will not be the end of NAV declines for the year and model NAV/share to finish 2017 at $14.18 before we expect it to recover in 2018. Realized losses finished 2Q17 at $80.9 million from $54.7 million in 1Q17 and $42.6 million a year ago and we expect this to increase to $105.3 million in 1Q18.
• We are revising our 2017 NII/share estimate to $1.68 from $1.81 and our 2018 NII/share estimate to $1.77 from $1.96.,” National Securities’ analyst wrote.
Several other brokerages also recently issued reports on TCAP. Zacks Investment Research downgraded shares of Triangle Capital Corporation from a hold rating to a sell rating in a research report on Wednesday, April 26th. Wunderlich began coverage on shares of Triangle Capital Corporation in a research report on Wednesday, May 17th. They set a buy rating and a $23.00 price target on the stock. Jefferies Group LLC reiterated a buy rating and set a $23.00 price target on shares of Triangle Capital Corporation in a research report on Monday, May 15th. Aegis began coverage on shares of Triangle Capital Corporation in a research report on Monday, June 26th. They set a buy rating on the stock. Finally, Hilliard Lyons upgraded shares of Triangle Capital Corporation from a neutral rating to a buy rating and set a $19.00 price target on the stock in a research report on Monday, June 26th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and five have assigned a buy rating to the stock. Triangle Capital Corporation presently has an average rating of Hold and an average price target of $18.75.
Triangle Capital Corporation (TCAP) traded down 0.22% during trading on Monday, reaching $13.70. 104,500 shares of the company’s stock traded hands. The company has a market capitalization of $654.11 million, a price-to-earnings ratio of 28.48 and a beta of 0.90. The firm’s 50 day moving average is $16.99 and its 200-day moving average is $18.27. Triangle Capital Corporation has a 12 month low of $13.62 and a 12 month high of $20.35.
Triangle Capital Corporation (NYSE:TCAP) last issued its quarterly earnings results on Wednesday, August 2nd. The credit services provider reported $0.41 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.42 by $0.01. The company had revenue of $31.20 million for the quarter, compared to analyst estimates of $33.25 million. Triangle Capital Corporation had a return on equity of 10.51% and a net margin of 16.92%. The firm’s quarterly revenue was up 3.3% on a year-over-year basis. During the same quarter last year, the company earned $0.49 EPS. Analysts expect that Triangle Capital Corporation will post $1.67 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 20th. Shareholders of record on Wednesday, September 6th will be given a dividend of $0.45 per share. The ex-dividend date of this dividend is Friday, September 1st. This represents a $1.80 dividend on an annualized basis and a yield of 13.11%. Triangle Capital Corporation’s payout ratio is presently 346.16%.
In other Triangle Capital Corporation news, insider C. Robert Jr. Knox sold 3,000 shares of the company’s stock in a transaction dated Friday, June 23rd. The shares were sold at an average price of $17.72, for a total transaction of $53,160.00. Following the transaction, the insider now directly owns 75,716 shares in the company, valued at approximately $1,341,687.52. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 4.10% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TCAP. Wealthsource Partners LLC increased its position in Triangle Capital Corporation by 2.7% in the first quarter. Wealthsource Partners LLC now owns 16,415 shares of the credit services provider’s stock worth $313,000 after buying an additional 425 shares during the last quarter. HL Financial Services LLC increased its position in Triangle Capital Corporation by 2.7% in the first quarter. HL Financial Services LLC now owns 11,350 shares of the credit services provider’s stock worth $217,000 after buying an additional 300 shares during the last quarter. Armor Investment Advisors LLC increased its position in Triangle Capital Corporation by 6.9% in the first quarter. Armor Investment Advisors LLC now owns 147,692 shares of the credit services provider’s stock worth $2,819,000 after buying an additional 9,555 shares during the last quarter. Yorktown Management & Research Co Inc acquired a new position in Triangle Capital Corporation during the first quarter worth about $5,345,000. Finally, Trust Co. of Vermont acquired a new position in Triangle Capital Corporation during the first quarter worth about $106,000. Institutional investors own 31.86% of the company’s stock.
Triangle Capital Corporation Company Profile
Triangle Capital Corporation is an internally managed, non-diversified closed-end management investment company. The Company is a specialty finance company that provides customized financing to lower middle market companies located primarily in the United States. The Company’s investment objective is to seek attractive returns by generating current income from its debt investments and capital appreciation from its equity-related investments.
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