Great Elm Capital Group (NASDAQ:GECC) Rating Increased to Hold at Zacks Research

Zacks Research upgraded shares of Great Elm Capital Group (NASDAQ:GECC) from a strong sell rating to a hold rating in a report published on Monday,Zacks.com reports.

Separately, Clear Str lowered shares of Great Elm Capital Group from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, March 3rd. Three analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Reduce” and a consensus price target of $10.50.

Great Elm Capital Group Stock Up 2.7%

GECC opened at $5.68 on Monday. Great Elm Capital Group has a 12 month low of $4.63 and a 12 month high of $11.45. The business has a 50-day moving average of $5.41 and a two-hundred day moving average of $6.60. The company has a debt-to-equity ratio of 1.68, a current ratio of 0.24 and a quick ratio of 0.24. The stock has a market capitalization of $78.90 million, a price-to-earnings ratio of -2.38 and a beta of 0.72.

Great Elm Capital Group (NASDAQ:GECC) last announced its quarterly earnings data on Monday, May 4th. The financial services provider reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.04. Great Elm Capital Group had a negative net margin of 70.13% and a positive return on equity of 13.53%. The business had revenue of ($1.91) million for the quarter, compared to analyst estimates of $10.74 million. On average, research analysts expect that Great Elm Capital Group will post 0.93 earnings per share for the current year.

Great Elm Capital Group Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be paid a dividend of $0.25 per share. The ex-dividend date is Monday, June 15th. This represents a $1.00 annualized dividend and a yield of 17.6%. Great Elm Capital Group’s dividend payout ratio is currently -52.17%.

Hedge Funds Weigh In On Great Elm Capital Group

Several hedge funds and other institutional investors have recently modified their holdings of GECC. Squarepoint Ops LLC grew its holdings in shares of Great Elm Capital Group by 247.9% during the 4th quarter. Squarepoint Ops LLC now owns 106,079 shares of the financial services provider’s stock worth $747,000 after purchasing an additional 75,588 shares during the period. Granby Capital Management LLC acquired a new stake in Great Elm Capital Group during the 4th quarter worth approximately $352,000. Jane Street Group LLC purchased a new position in Great Elm Capital Group in the fourth quarter valued at approximately $220,000. TrueMark Investments LLC purchased a new position in Great Elm Capital Group in the fourth quarter valued at approximately $148,000. Finally, Schonfeld Strategic Advisors LLC acquired a new position in Great Elm Capital Group during the third quarter valued at approximately $169,000. 38.75% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Great Elm Capital Group

Here are the key news stories impacting Great Elm Capital Group this week:

• Positive Sentiment: Board declared a $0.25 quarterly dividend (annualized yield ~18%) and set a June 30 payment date with an ex-dividend/record schedule that supports income-focused investors. Great Elm Capital outlines $0.25 dividend while prioritizing NAV protection and balance sheet deleveraging
• Positive Sentiment: Q1 NII/EPS beat: Net investment income (NII) / EPS of $0.36 topped consensus ($0.23), signaling operating profitability on a per?share basis despite other headline items. This beat is a primary near-term catalyst. Great Elm Capital (GECC) Q1 Earnings Surpass Estimates
• Positive Sentiment: Balance-sheet deleveraging: Management called/repurchased all $57.5M of GECCO notes due June 2026 and reports no funded debt maturing until 2029, plus ~$10M cash and $50M revolver availability — reduces near-term refinancing risk. Great Elm Capital Corp. Announces First-Quarter 2026 Financial Results
• Positive Sentiment: Investment adviser waived incentive fees (continuing a prior waiver), improving reported NII by ~$0.20 per share and helping preserve distributable cash this quarter. Great Elm Capital Corp. Announces First-Quarter 2026 Financial Results
• Neutral Sentiment: NAV and governance updates: NAV reported $7.74/share as of 3/31 and Jason Reese was appointed CEO — NAV provides a valuation reference for buybacks, while leadership changes are typically a multi?quarter driver. Great Elm Capital Corp. Announces First-Quarter 2026 Financial Results
• Neutral Sentiment: Share repurchases: The company repurchased ~1% of outstanding shares at an average ~36% discount to March?31 NAV — supports shares but scale is modest relative to market cap. Great Elm Capital Corp. Announces First-Quarter 2026 Financial Results
• Negative Sentiment: Top-line and margin issues: Reported revenue was negative (~($1.9)M) and the company still shows a negative net margin (loss on GAAP basis), highlighting earnings volatility and underlying portfolio mark movements that could pressure sentiment. Great Elm Capital Q1 earnings summary & transcript

About Great Elm Capital Group

Great Elm Capital Group, Inc (NASDAQ: GECC) is a closed-end, externally managed business development company (BDC) that seeks to generate current income and capital appreciation by investing in private, middle-market companies. The firm targets senior secured loans, subordinated debt and equity securities of U.S. companies, with a focus on businesses offering stable cash flows and potential for growth. Industry sectors of interest include business services, consumer products, industrials and healthcare, among others.

GECC’s investment strategy emphasizes portfolio diversification and active management.