According to Zacks, “THL Credit Inc. is a newly-organized, externally-managed, non-diversified closed-end management investment company that has filed an election to be treated as a business development company. The Company’s investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of middle market companies. The Company invests primarily in private subordinated debt, or mezzanine debt, in middle market companies that require capital for growth and acquisitions. Such investments in many cases include an associated equity component such as warrants, preferred stock or other similar securities. The Company’s investment activities are managed by its investment adviser, THL Credit Advisors LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended. “
Separately, ValuEngine upgraded shares of THL Credit from a sell rating to a hold rating in a research report on Wednesday, September 4th.
THL Credit (NASDAQ:TCRD) last issued its earnings results on Thursday, August 8th. The investment management company reported $0.28 earnings per share for the quarter, beating the consensus estimate of $0.23 by $0.05. THL Credit had a negative net margin of 45.45% and a positive return on equity of 10.65%. The business had revenue of $15.36 million for the quarter, compared to analyst estimates of $14.24 million. As a group, equities research analysts anticipate that THL Credit will post 0.94 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Monday, September 30th. Stockholders of record on Monday, September 16th were given a dividend of $0.21 per share. The ex-dividend date was Friday, September 13th. This represents a $0.84 annualized dividend and a dividend yield of 12.43%. THL Credit’s dividend payout ratio (DPR) is currently 78.50%.
Institutional investors have recently modified their holdings of the company. Gilman Hill Asset Management LLC bought a new position in THL Credit during the 2nd quarter valued at about $83,000. JPMorgan Chase & Co. lifted its holdings in THL Credit by 18.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 23,443 shares of the investment management company’s stock valued at $156,000 after purchasing an additional 3,668 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. lifted its holdings in THL Credit by 14.4% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 26,220 shares of the investment management company’s stock valued at $174,000 after purchasing an additional 3,300 shares during the last quarter. Wedbush Securities Inc. lifted its holdings in THL Credit by 6.9% during the 2nd quarter. Wedbush Securities Inc. now owns 36,165 shares of the investment management company’s stock valued at $240,000 after purchasing an additional 2,325 shares during the last quarter. Finally, Ladenburg Thalmann Financial Services Inc. lifted its holdings in THL Credit by 7.5% during the 2nd quarter. Ladenburg Thalmann Financial Services Inc. now owns 51,431 shares of the investment management company’s stock valued at $342,000 after purchasing an additional 3,575 shares during the last quarter. Institutional investors and hedge funds own 48.55% of the company’s stock.
THL Credit Company Profile
THL Credit, Inc is a business development company specializing in direct and fund of fund investments. The fund seeks to invest in debt and equity securities of middle market companies. It seeks to invest in PIPES, growth, acquisition, market or product expansion, recapitalization, mature, and change of control transactions in both sponsored and unsponsored issuers.
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