MVC Capital (MVC) Gets a Buy Rating from Maxim Group


In a report released yesterday, Michael Diana from Maxim Group reiterated a Buy rating on MVC Capital (MVC), with a price target of $13. The company’s shares closed yesterday at $9.36.

Diana noted:

“MVC has hit a positive inflection point, in our view: in F2Q19, MVC converted one of its largest positions (Custom of yield investments into $39M of yield investments; and, thus far in F3Q19, MVC has originated $18M of new yield investments. Consequently, management is guiding to coverage of the quarterly dividend of $0.15 with net investment income (NII) in F3Q19. We are raising our quarterly EPS estimates for the remainder of to $0.15. Based on these estimates, and on a higher F2Q19 NAV of $12.99 (up 6.1% from F1Q19), we are raising our price target to $13, from $11. Our new price target equates to 1.0x NAV (versus 0.9x NAV for our previous price target), which is in line with relevant peers.”

According to TipRanks.com, Diana is a 5-star analyst with an average return of 6.0% and a 56.5% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Manhattan Bridge Capital Inc, and Arlington Asset Investment.

The the analyst consensus on MVC Capital is currently a Hold rating.

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Based on MVC Capital’s latest earnings release for the quarter ending January 31, the company reported a quarterly GAAP net loss of $3.05 million. In comparison, last year the company had a GAAP net loss of $3.39 million.

Based on the recent corporate insider activity of 9 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 MVC in relation to earlier this year.

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MVC Capital Inc, operates as a non-diversified closed-end management investment company. It engages in the provision of equity and debt investment capital to fund growth, acquisitions, and recapitalizations of small and middle-market companies. It operates through the MVC and MVCFS segments. The MVC segment consists of MVC Cayman and MVC Turf.

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