Stocks: Fifth Street Finance Corp. (FSC) Releases Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Stocks: Fifth Street Finance Corp. (FSC) Releases Quarterly  Earnings Results, Misses Expectations By $0.02 EPS

Fifth Street Finance Corp. (NASDAQ:FSC) released its quarterly earnings data on Wednesday. The credit services provider reported $0.13 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.15 by $0.02. Fifth Street Finance Corp. had a negative net margin of 33.22% and a positive return on equity of 9.13%. The firm had revenue of $45.56 million for the quarter, compared to analyst estimates of $50.76 million.

Fifth Street Finance Corp. (NASDAQ:FSC) opened at 4.33 on Friday. The company’s 50-day moving average price is $4.48 and its 200 day moving average price is $5.05. The company’s market capitalization is $610.36 million. Fifth Street Finance Corp. has a 12 month low of $4.15 and a 12 month high of $6.32.

The business also recently announced a quarterly dividend, which will be paid on Friday, September 29th. Investors of record on Friday, September 15th will be given a dividend of $0.125 per share. This is a positive change from Fifth Street Finance Corp.’s previous quarterly dividend of $0.02. This represents a $0.50 annualized dividend and a yield of 11.55%. The ex-dividend date is Thursday, September 14th. Fifth Street Finance Corp.’s dividend payout ratio (DPR) is currently -130.91%.

Several equities research analysts recently weighed in on the company. Raymond James Financial, Inc. reissued an “underperform” rating on shares of Fifth Street Finance Corp. in a report on Thursday, March 30th. Zacks Investment Research downgraded Fifth Street Finance Corp. from a “hold” rating to a “sell” rating in a report on Wednesday, March 29th. Barclays PLC set a $5.00 price objective on Fifth Street Finance Corp. and gave the company a “hold” rating in a report on Tuesday, February 14th. National Securities cut their price objective on Fifth Street Finance Corp. from $6.00 to $4.00 and set a “neutral” rating on the stock in a report on Monday, February 13th. Finally, BMO Capital Markets reissued a “hold” rating and set a $4.00 price objective on shares of Fifth Street Finance Corp. in a report on Tuesday, April 11th. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and one has issued a buy rating to the company. The stock currently has an average rating of “Hold” and an average price target of $5.17.

In related news, major shareholder Leonard M. Tannenbaum purchased 655,850 shares of the firm’s stock in a transaction that occurred on Monday, March 27th. The stock was bought at an average cost of $4.67 per share, with a total value of $3,062,819.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Leonard M. Tannenbaum purchased 368,073 shares of the firm’s stock in a transaction that occurred on Wednesday, March 29th. The stock was bought at an average cost of $4.74 per share, with a total value of $1,744,666.02. Following the completion of the purchase, the insider now owns 15,512,816 shares of the company’s stock, valued at $73,530,747.84. The disclosure for this purchase can be found here. Over the last three months, insiders purchased 4,486,815 shares of company stock valued at $20,481,585. 0.08% of the stock is owned by insiders.

Institutional investors have recently added to or reduced their stakes in the company. DnB Asset Management AS increased its position in Fifth Street Finance Corp. by 2.1% in the third quarter. DnB Asset Management AS now owns 64,300 shares of the credit services provider’s stock worth $374,000 after buying an additional 1,300 shares during the last quarter. Sheaff Brock Investment Advisors LLC increased its position in Fifth Street Finance Corp. by 7.0% in the first quarter. Sheaff Brock Investment Advisors LLC now owns 44,635 shares of the credit services provider’s stock worth $206,000 after buying an additional 2,921 shares during the last quarter. Eagle Global Advisors LLC increased its position in Fifth Street Finance Corp. by 32.3% in the third quarter. Eagle Global Advisors LLC now owns 27,250 shares of the credit services provider’s stock worth $158,000 after buying an additional 6,660 shares during the last quarter. First Allied Advisory Services Inc. increased its position in Fifth Street Finance Corp. by 39.6% in the fourth quarter. First Allied Advisory Services Inc. now owns 27,150 shares of the credit services provider’s stock worth $146,000 after buying an additional 7,706 shares during the last quarter. Finally, Cipher Capital LP increased its position in Fifth Street Finance Corp. by 19.2% in the fourth quarter. Cipher Capital LP now owns 51,428 shares of the credit services provider’s stock worth $276,000 after buying an additional 8,274 shares during the last quarter. 32.17% of the stock is owned by institutional investors.

Fifth Street Finance Corp. Company Profile

Fifth Street Finance Corp. is a specialty finance company. The Company is a closed-end, non-diversified management investment company. The Company acts as a business development company (BDC). The Company’s investment objective is to maximize its portfolio’s total return by generating current income from its debt investments, and capital appreciation from its equity investments.

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