Rand Capital (NASDAQ:RAND) Posts Quarterly Earnings Results

Rand Capital (NASDAQ:RAND) issued its quarterly earnings results on Wednesday. The asset manager reported $0.18 earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of $1.24 million during the quarter. Rand Capital had a positive return on equity of 6.55% and a negative net margin of 124.17%.

Here are the key takeaways from Rand Capital’s conference call:

• Balance sheet flexibility — ended Q1 with NAV $17.16/share, about $20.1M of available credit and only $0.5M drawn, plus a renewed $1.5M share repurchase authorization.
• Capital recycling and deployment — realized a ~$1.1M gain from the Seybert’s exit, deployed $5.1M in new/follow-on investments (including a $4.0M AME Holdco deal at 13% plus equity), supporting future income potential.
• Earnings pressure — total investment income fell 38% y/y to $1.2M and net investment income was just $0.18/share, with the portfolio yield declining to 9.43% from 11.3% due mainly to repayments and non-accruals.
• Credit stress in specific holdings — FSS and MRES remain on non-accrual (MRES is in a technical bankruptcy); RAND is allocating follow-on capital and pursuing workouts, which could weigh on near-term returns.

Rand Capital Price Performance

RAND traded up $0.03 during trading on Thursday, hitting $11.02. 3,026 shares of the stock traded hands, compared to its average volume of 4,452. The business has a 50 day moving average price of $11.38 and a 200 day moving average price of $12.28. The company has a market cap of $32.73 million, a price-to-earnings ratio of -4.10 and a beta of 0.09. Rand Capital has a twelve month low of $10.05 and a twelve month high of $20.00.

Rand Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Wednesday, May 27th will be given a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a yield of 10.5%. The ex-dividend date is Wednesday, May 27th. Rand Capital’s payout ratio is currently -43.12%.

Institutional Inflows and Outflows

An institutional investor recently bought a new position in Rand Capital stock. Ritholtz Wealth Management purchased a new stake in shares of Rand Capital Corporation (NASDAQ:RAND) during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 11,089 shares of the asset manager’s stock, valued at approximately $126,000. Ritholtz Wealth Management owned about 0.37% of Rand Capital at the end of the most recent quarter.

Analyst Ratings Changes

Separately, Weiss Ratings reiterated a “sell (d+)” rating on shares of Rand Capital in a research note on Thursday, January 22nd. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the stock presently has an average rating of “Sell”.

Rand Capital Company Profile

Rand Capital Corporation is a publicly traded business development company (BDC) focused on providing financing solutions to growing businesses. Established in 1999 and headquartered near Buffalo, New York, Rand Capital seeks to partner with small to mid-size companies across a variety of industries. By leveraging its balance sheet, the firm aims to deliver flexible debt and equity investments designed to support expansion, acquisitions, working capital needs and other strategic initiatives.

The company’s financing activities span senior secured loans, subordinated debt, equity co-investments and royalty or revenue-based financing.