SLR Investment (NASDAQ:SLRC) Sees Unusually-High Trading Volume – Still a Buy?

SLR Investment Corp. (NASDAQ:SLRC) shares saw unusually-high trading volume on Thursday . Approximately 778,428 shares traded hands during mid-day trading, an increase of 126% from the previous session’s volume of 345,057 shares.The stock last traded at $13.4980 and had previously closed at $13.95.

SLR Investment News Summary

Here are the key news stories impacting SLR Investment this week:

• Positive Sentiment: SLR declared a $0.31 quarterly dividend (ex-dividend record date June 12; annualized yield ~8.9%), which supports income-focused holders and can provide a valuation floor. SLR Investment declares $0.31 dividend
• Neutral Sentiment: Company held its Q1 earnings call and outlined a plan to rebound earnings; useful for longer-term holders but details leave timing and magnitude uncertain. SLR Investment Corp. Outlines Path To Earnings Rebound
• Negative Sentiment: Q1 results missed expectations: EPS $0.33 vs. consensus $0.40 and revenue below estimates; management flagged a cautious credit outlook — a direct driver of near-term share weakness. SLR Investment (SLRC) Lags Q1 Earnings and Revenue Estimates
• Negative Sentiment: Wells Fargo cut its price target to $11.00 and moved to an “underweight” rating, signaling outsized downside vs. the recent price and adding selling pressure. Wells Fargo lowers PT to $11 / underweight
• Negative Sentiment: JPMorgan lowered its price target to $13.50 and assigned an “underweight” rating, reinforcing bearish analyst sentiment after the quarter. JPMorgan lowers PT to $13.50 / underweight

Wall Street Analysts Forecast Growth

SLRC has been the topic of several recent research reports. JPMorgan Chase & Co. decreased their price target on shares of SLR Investment from $14.00 to $13.50 and set an “underweight” rating on the stock in a research report on Thursday. Compass Point upgraded shares of SLR Investment from a “neutral” rating to a “buy” rating and set a $16.50 price target on the stock in a research report on Tuesday, March 10th. Raymond James Financial set a $16.00 price objective on shares of SLR Investment and gave the stock an “outperform” rating in a research note on Wednesday, February 25th. Wall Street Zen raised shares of SLR Investment from a “sell” rating to a “hold” rating in a research note on Sunday, April 12th. Finally, Wells Fargo & Company decreased their price objective on shares of SLR Investment from $12.00 to $11.00 and set an “underweight” rating for the company in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, SLR Investment presently has an average rating of “Hold” and an average target price of $15.07.

SLR Investment Stock Performance

The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 1.15. The firm has a 50-day simple moving average of $14.85 and a two-hundred day simple moving average of $15.14. The company has a market capitalization of $745.22 million, a price-to-earnings ratio of 8.33 and a beta of 0.71.

SLR Investment (NASDAQ:SLRC) last posted its earnings results on Tuesday, May 5th. The financial services provider reported $0.33 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.07). SLR Investment had a net margin of 41.81% and a return on equity of 8.32%. The company had revenue of $47.14 million for the quarter, compared to the consensus estimate of $54.01 million. As a group, sell-side analysts forecast that SLR Investment Corp. will post 1.62 earnings per share for the current fiscal year.

SLR Investment Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, June 12th will be issued a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a yield of 9.1%. The ex-dividend date is Friday, June 12th. SLR Investment’s dividend payout ratio (DPR) is 100.00%.

Insiders Place Their Bets

In related news, insider Michael S. Gross bought 25,000 shares of the business’s stock in a transaction on Friday, March 13th. The shares were bought at an average cost of $13.91 per share, for a total transaction of $347,750.00. Following the completion of the acquisition, the insider directly owned 4,014,701 shares in the company, valued at approximately $55,844,490.91. This represents a 0.63% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 8.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Kelleher Financial Advisors acquired a new position in SLR Investment during the 4th quarter worth $26,000. BNP Paribas Financial Markets lifted its position in SLR Investment by 1,389.8% during the 3rd quarter. BNP Paribas Financial Markets now owns 1,758 shares of the financial services provider’s stock worth $27,000 after acquiring an additional 1,640 shares during the last quarter. CWM LLC lifted its position in SLR Investment by 215.6% during the 3rd quarter. CWM LLC now owns 2,367 shares of the financial services provider’s stock worth $36,000 after acquiring an additional 1,617 shares during the last quarter. State of Alaska Department of Revenue acquired a new position in SLR Investment during the 3rd quarter worth $38,000. Finally, International Assets Investment Management LLC acquired a new position in SLR Investment during the 4th quarter worth $42,000. Institutional investors and hedge funds own 35.32% of the company’s stock.

About SLR Investment

SLR Investment Corp. (NASDAQ: SLRC) is a closed?end, externally managed business development company that provides customized debt and equity financing solutions to middle?market companies. The firm seeks to generate current income and capital appreciation by investing primarily in senior secured loans, second lien financings, mezzanine debt and equity co?investments. Its flexible capital approach allows it to structure financing across the capital structure to address a range of sponsor?backed transactions.

SLR Investment Corp.