Monroe Capital Gets a Buy Rating from Oppenheimer


In a report released today, Chris Kotowski from Oppenheimer maintained a Buy rating on Monroe Capital (NASDAQ: MRCC), with a price target of $16. The company’s shares opened today at $13.10.

Kotowski wrote:

“Ever since completing its post IPO “ramp-up” period in 2013, Monroe Capital has pretty steadily covered its $0.35 per share quarterly dividend (10.7% yield) out of recurring net investment income (NII). The just-reported 1Q18 was no exception. NII of $0.42 handily beat our $0.35 estimate. While the quarter benefited by $0.05 from a $1.1M limitation on the incentive fee that was likely non-recurring, NII of $0.37 would have beat our estimate and covered the dividend in any case. The limitation came into effect because of a decline in NAV from $13.77 to $13.49 which resulted primarily from adverse marks on two assets. While one never likes to see NAV erosion, and MRCC’s track record isn’t perfect, it is much better than average.”

According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 10.0% and a 65.6% success rate. Kotowski covers the Financial sector, focusing on stocks such as Eagle Point Credit Company Inc, Great Elm Capital Corporation, and Apollo Global Management LLC.

Monroe Capital has an analyst consensus of Moderate Buy, with a price target consensus of $15.33.

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Based on Monroe Capital’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $2.24 million. In comparison, last year the company had a net profit of $2.57 million.

Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MRCC in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Monroe Capital Corp. is a business development company that invests in middle-market and lower middle-market companies located in the US and Canada with an EBITDA of between $3 million and $50 million and revenues of between $20 million and $500 million.

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