In a report released today, Chris Kotowski from Oppenheimer maintained a Hold rating on Alcentra Capital (NASDAQ: ABDC). The company’s shares opened today at $6.16, close to its 52-week low of $5.75.
Kotowski observed:
“ABDC is only a few quarters into a turnaround process that is likely to take a few years, and we think the stock’s valuation at just 56% of its book value is a reflection of both the credit problems and the market recognition that management and strategy changes are difficult to execute. Right now investors are benefiting from a temporary 25bps reduction in management fees, which helps the earnings profile of the portfolio, but it’s very hard to predict the moving pieces of what will ultimately determine normalized earnings for the company. We remain on the sidelines; we believe the $0.72 dividend is likely achievable, but the 11.5% potential yield reflects the risks, and we prefer other BDCs at this juncture.”
According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 11.6% and a 69.7% success rate. Kotowski covers the Financial sector, focusing on stocks such as Eagle Point Credit Company Inc, Great Elm Capital Corporation, and Fidus Investment Corporation.
Alcentra Capital has an analyst consensus of Hold.
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Based on Alcentra Capital’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $3.54 million. In comparison, last year the company had a GAAP net loss of $5.15 million.
Based on the recent corporate insider activity of 14 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 ABDC 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.
Alcentra Capital Corp. is a non-diversified closed-end management investment company, which engages in the provision of debt and equity financing solutions to lower middle and middle-market companies. It targets industries operating in the field of healthcare and pharmaceutical services; defense, aerospace, homeland security and government services; and business and outsourced services. The company was founded on June 6, 2013 and is headquartered in New York, NY.
