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Oppenheimer analyst Chris Kotowski maintained a Buy rating on TCP Capital (TCPC) today and set a price target of $17. The company’s shares opened today at $14.45.
Kotowski wrote:
“It is hard not to be repetitive in our reports on TCPC as this was the 27th consecutive quarter of covering the $0.36 dividend cleanly out of operating earnings. That equates to a 10.0% dividend return on the current share price which we think is pretty darn attractive for a “sleep at night” kind of company in a world where the 10-year UST yields 2.7%. Clearly TCPC takes credit risk, but in our view its dividend coverage has been so comfortable and consistent that this 730 basis points seems an extraordinary risk premium. TCPC currently trades at just 102% of 12/31 NAV, and given the snapback in loan markets, probably roughly at current NAV.”
According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 10.9% and a 63.7% success rate. Kotowski covers the Financial sector, focusing on stocks such as Apollo Global Management LLC, Oaktree Capital Group Llc, and Solar Senior Capital Ltd.
TCP Capital has an analyst consensus of Moderate Buy, with a price target consensus of $17.
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The company has a one-year high of $14.98 and a one-year low of $12.52. Currently, TCP Capital has an average volume of 331.8K.
Based on the recent corporate insider activity of 10 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 TCPC 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.
Blackrock TCP Capital Corp. is an externally managed, closed-end and non-diversified management investment company. The company invests primarily in the debt of middle market companies as well as small businesses, including senior secured loans, junior loans, mezzanine debt and bonds.
