Blackrock Tcp Capital (NASDAQ:TCPC) Announces Earnings Results

Blackrock Tcp Capital (NASDAQ:TCPC) announced its earnings results on Thursday. The investment management company reported $0.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.01, FiscalAI reports. Blackrock Tcp Capital had a positive return on equity of 15.06% and a negative net margin of 44.07%.The firm had revenue of $42.58 million during the quarter, compared to analyst estimates of $40.10 million.

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

• Non?accruals and leverage improved — non?accruals fell to 2.8% (fair value) and 7.6% (cost)1.29x at quarter end (improved to 1.23x post?quarter) after $135.3M of exits/paydowns and >$50M of subsequent paydowns.
• NAV and realized losses pressured results — NAV declined 4.9% to $6.72 driven by ~$35M of portfolio markdowns (largest: Job&Talent ~ $11M and software ~ $11M) and $32.7M of net realized losses from Fishbowl and Alpine restructurings/sales.
• Portfolio mix and recent activity — $1.4B portfolio across 139 companies with 91.8% senior secured and 94.4% floating?rate debt; software is ~30.5% of the portfolio (26% LTV at origination); new investments were modest (~$22.5M) and yielded ~8.3% versus ~11.2% on exited deals.
• Capital position and shareholder actions — liquidity of $358.6M (including $93.3M cash), full repayment of $325M 2026 notes, board declared a $0.17 Q2 dividend, and share buybacks restarted with reapproval of a $50M repurchase program.

Blackrock Tcp Capital Stock Down 3.9%

TCPC stock traded down $0.17 on Friday, reaching $4.19. 1,040,400 shares of the company traded hands, compared to its average volume of 1,154,615. Blackrock Tcp Capital has a one year low of $3.43 and a one year high of $8.06. The company has a debt-to-equity ratio of 1.73, a current ratio of 17.66 and a quick ratio of 17.66. The company has a market cap of $352.92 million, a P/E ratio of -3.99 and a beta of 0.98. The firm has a fifty day simple moving average of $3.93 and a 200-day simple moving average of $4.97.

Blackrock Tcp Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 16.2%. The ex-dividend date of this dividend is Tuesday, June 16th. Blackrock Tcp Capital’s dividend payout ratio (DPR) is -64.76%.

Insiders Place Their Bets

In related news, COO Patrick Wolfe acquired 6,850 shares of Blackrock Tcp Capital stock in a transaction that occurred on Friday, March 13th. The stock was bought at an average price of $3.65 per share, with a total value of $25,002.50. Following the transaction, the chief operating officer directly owned 16,086 shares in the company, valued at approximately $58,713.90. This represents a 74.17% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 0.37% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Jones Financial Companies Lllp boosted its stake in Blackrock Tcp Capital by 5,349.6% during the 1st quarter. Jones Financial Companies Lllp now owns 93,461 shares of the investment management company’s stock valued at $749,000 after purchasing an additional 91,746 shares during the last quarter. Creative Planning purchased a new stake in Blackrock Tcp Capital during the 2nd quarter valued at $85,000. XTX Topco Ltd purchased a new stake in Blackrock Tcp Capital during the 2nd quarter valued at $166,000. Marshall Wace LLP purchased a new stake in Blackrock Tcp Capital during the 2nd quarter valued at $4,045,000. Finally, Raymond James Financial Inc. boosted its stake in Blackrock Tcp Capital by 7.7% during the 2nd quarter. Raymond James Financial Inc. now owns 90,675 shares of the investment management company’s stock valued at $698,000 after purchasing an additional 6,509 shares during the last quarter.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the company. Wells Fargo & Company decreased their target price on Blackrock Tcp Capital from $5.50 to $3.50 and set an “underweight” rating for the company in a research report on Monday, March 2nd. Keefe, Bruyette & Woods reissued an “underperform” rating and issued a $3.50 target price (down from $7.00) on shares of Blackrock Tcp Capital in a research report on Tuesday, March 3rd. Zacks Research lowered Blackrock Tcp Capital from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, February 4th. Finally, Wall Street Zen lowered Blackrock Tcp Capital from a “hold” rating to a “sell” rating in a research report on Saturday, March 7th. One investment analyst has rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Strong Sell” and an average price target of $3.50.

Blackrock Tcp Capital Company Profile

BlackRock TCP Capital Corp is a publicly traded business development company (BDC) listed on the NASDAQ under the ticker TCPC. Externally managed by BlackRock, the firm provides customized financing solutions to U.S. middle-market companies, with a focus on sponsor-backed transactions. Its core strategy centers on delivering current income and capital appreciation through a diversified portfolio of debt and equity investments across a variety of sectors, including consumer products, healthcare, business services and industrials.

Since its initial public offering in 2013, BlackRock TCP Capital has partnered with private equity sponsors to underwrite and structure senior secured first-lien loans, second-lien loans, mezzanine debt and select equity co-investments.