Solar Capital Ltd. (NASDAQ:SLRC) to Issue $0.41 Quarterly Dividend

Solar Capital Ltd. (NASDAQ:SLRC) declared a quarterly dividend on Thursday, May 7th, Zacks reports. Shareholders of record on Thursday, June 18th will be given a dividend of 0.41 per share by the financial services provider on Thursday, July 2nd. This represents a $1.64 dividend on an annualized basis and a yield of 9.52%. The ex-dividend date of this dividend is Wednesday, June 17th.

Solar Capital has a payout ratio of 110.1% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Solar Capital to earn $1.61 per share next year, which means the company may not be able to cover its $1.64 annual dividend with an expected future payout ratio of 101.9%.

NASDAQ:SLRC opened at $17.23 on Tuesday. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.62. The business’s 50 day moving average is $15.77 and its two-hundred day moving average is $17.54. Solar Capital has a 52 week low of $7.42 and a 52 week high of $21.24. The company has a market cap of $717.58 million, a PE ratio of -16.25 and a beta of 1.31.

Solar Capital (NASDAQ:SLRC) last released its earnings results on Thursday, May 7th. The financial services provider reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.04). The firm had revenue of $32.90 million for the quarter, compared to the consensus estimate of $37.43 million. Solar Capital had a positive return on equity of 7.82% and a negative net margin of 29.85%. As a group, sell-side analysts expect that Solar Capital will post 1.43 EPS for the current fiscal year.

A number of analysts have recently weighed in on the company. Wells Fargo & Co increased their price target on Solar Capital from $13.50 to $16.00 and gave the stock an “overweight” rating in a research report on Monday, May 11th. JPMorgan Chase & Co. dropped their price target on Solar Capital from $21.50 to $17.00 and set an “overweight” rating on the stock in a research report on Monday, May 4th. LADENBURG THALM/SH SH cut Solar Capital from a “buy” rating to a “neutral” rating in a research report on Monday, February 24th. JMP Securities dropped their price target on Solar Capital from $21.50 to $18.50 and set a “market outperform” rating on the stock in a research report on Monday, May 11th. Finally, ValuEngine cut Solar Capital from a “hold” rating to a “sell” rating in a research report on Thursday, April 2nd. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and six have issued a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus price target of $18.42.

In other Solar Capital news, Director David Wachter bought 20,000 shares of the stock in a transaction that occurred on Friday, March 20th. The shares were purchased at an average cost of $10.59 per share, for a total transaction of $211,800.00. The purchase was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Richard Peteka bought 5,000 shares of the stock in a transaction that occurred on Monday, March 23rd. The stock was acquired at an average price of $8.99 per share, for a total transaction of $44,950.00. Following the completion of the transaction, the chief financial officer now owns 24,000 shares in the company, valued at $215,760. The disclosure for this purchase can be found here. Over the last 90 days, insiders purchased 117,627 shares of company stock worth $1,137,629. 6.00% of the stock is owned by insiders.

About Solar Capital

Solar Capital Ltd. is a business development company specializing in secured debt (first lien unitranche and second lien), subordinated (unsecured) debt, minority equity, and strategic income-oriented control equity investments in leveraged middle market companies. The fund invests in aerospace and defense; air freight & logistics; asset management; automotive; banking; beverage, food and tobacco; building products; buildings and real estate; broadcasting and entertainment; cargo transport; commercial services and supplies; communications equipment; chemicals, plastics and rubber; containers, packaging and glass; construction & engineering; diversified/conglomerate manufacturing; consumer Finance; distributors; diversified/conglomerate services; diversified financial services; diversified real estate sctivities; food products; Footwear; Education Services; diversified telecommunications services; electronics; farming and agriculture; finance; grocery; health care equipment and supplies; health care facilities; education and childcare; home and office furnishing, durable consumer products; hotels, motels, inns and gaming; insurance; restaurants, leisure, amusement, and entertainment; leisure equipment tolls and services, media, multiline retail, multi sector holdings; paper and forest products; personal products; professional services, research and consulting services, software; specialty retail; textiles apparel and luxury goods, thrifts and mortgage finance, trading companies and distributors, utilities, and wireless telecommunication services; industrial conglomerates; internet software and services, IT services, machinery; mining, steel, iron, and non precious metals; oil and gas; personal, food and miscellaneous services; printing and publishing; retail stores; telecommunications; textiles and leather; and utilities.

Further Reading: Recession

Dividend History for Solar Capital (NASDAQ:SLRC)

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