Great Elm Capital Group (NASDAQ: GECC) released its earnings results on October 3, 2023, reporting earnings per share (EPS) of $0.20 for the quarter. This figure fell short of analysts’ expectations, which had forecasted an EPS of $0.24, resulting in a miss of $0.04. According to Zacks, the company’s return on equity stood at 12.49%, with a net margin of 36.81%.
Following the announcement, Great Elm Capital Group’s stock experienced a slight decline, trading down by 0.1% to reach $7.47. The trading volume was recorded at 63,969 shares, which is lower than the average volume of 69,375 shares. The stock has a 50-day moving average price of $9.56 and a 200-day moving average price of $10.32. Over the past year, Great Elm Capital Group has seen a low of $7.18 and a high of $11.45.
Market Analysis and Analyst Ratings
In terms of financial health, the company has a current ratio of 0.08, a quick ratio of 0.08, and a debt-to-equity ratio of 1.40. With a market capitalization of approximately $86.43 million and a price-to-earnings ratio of 4.79, the stock’s beta is reported at 0.91, indicating lower volatility compared to the market.
The company has been the subject of multiple analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating for Great Elm Capital Group in their recent research report. Additionally, Wall Street Zen downgraded the stock from a “buy” rating to a “hold” rating. Capital One Financial has set a target price of $11.00 for Great Elm Capital Group, suggesting a potential upside based on current trading levels. Overall, MarketBeat.com indicates that the stock holds an average rating of “Hold” with a median price target of $11.00.
Company Overview
Great Elm Capital Group operates as a business development company, focusing on loan and mezzanine investments in the middle market. The firm invests primarily in debt instruments of middle market companies across various sectors, including media, healthcare, commercial services, telecommunications, and communications equipment.
For investors and market watchers, this earnings report highlights the ongoing challenges faced by Great Elm Capital Group in meeting market expectations. As the company navigates the competitive landscape of financial services, stakeholders will be keen to observe how it adapts and progresses in the upcoming quarters.
