Zacks Investment Research Downgrades Solar Senior Capital (SUNS) to Sell

Zacks Investment Research cut shares of Solar Senior Capital (NASDAQ:SUNS) from a hold rating to a sell rating in a research report sent to investors on Friday, Zacks.com reports.

According to Zacks, “Solar Senior Capital Ltd. operates as a business development company under the Investment Company Act of 1940. The Company invests primarily in senior secured loans, including first lien, unitranche and second lien debt instruments, made to private middle-market companies whose debt is rated below investment grade. “

Separately, BidaskClub cut shares of Solar Senior Capital from a buy rating to a hold rating in a research report on Friday, March 1st.

Shares of SUNS opened at $16.99 on Friday. The company has a quick ratio of 0.07, a current ratio of 0.07 and a debt-to-equity ratio of 0.21. The stock has a market cap of $272.68 million, a price-to-earnings ratio of 12.09 and a beta of 0.59. Solar Senior Capital has a 12-month low of $14.50 and a 12-month high of $17.56.

Solar Senior Capital (NASDAQ:SUNS) last announced its earnings results on Monday, May 6th. The asset manager reported $0.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.34 by $0.01. The company had revenue of $10.23 million during the quarter, compared to analysts’ expectations of $10.10 million. Solar Senior Capital had a net margin of 38.53% and a return on equity of 8.50%. As a group, research analysts anticipate that Solar Senior Capital will post 1.38 earnings per share for the current year.

The firm also recently announced a monthly dividend, which will be paid on Tuesday, June 4th. Shareholders of record on Thursday, May 23rd will be given a dividend of $0.1175 per share. This represents a $1.41 dividend on an annualized basis and a yield of 8.30%. The ex-dividend date is Wednesday, May 22nd. Solar Senior Capital’s payout ratio is currently 100.00%.

A number of institutional investors and hedge funds have recently made changes to their positions in SUNS. JPMorgan Chase & Co. grew its holdings in shares of Solar Senior Capital by 4.7% during the third quarter. JPMorgan Chase & Co. now owns 811,612 shares of the asset manager’s stock valued at $13,562,000 after buying an additional 36,287 shares during the last quarter. IFP Advisors Inc purchased a new stake in shares of Solar Senior Capital during the fourth quarter valued at $76,000. Advisor Group Inc. grew its holdings in shares of Solar Senior Capital by 276.7% during the fourth quarter. Advisor Group Inc. now owns 2,501 shares of the asset manager’s stock valued at $37,000 after buying an additional 1,837 shares during the last quarter. Two Sigma Investments LP grew its holdings in shares of Solar Senior Capital by 18.5% during the fourth quarter. Two Sigma Investments LP now owns 42,294 shares of the asset manager’s stock valued at $639,000 after buying an additional 6,610 shares during the last quarter. Finally, Two Sigma Advisers LP grew its holdings in shares of Solar Senior Capital by 11.4% during the fourth quarter. Two Sigma Advisers LP now owns 47,522 shares of the asset manager’s stock valued at $719,000 after buying an additional 4,878 shares during the last quarter. Institutional investors own 20.89% of the company’s stock.

Solar Senior Capital Company Profile

Solar Senior Capital Ltd. is a business development company specializing in investments in leveraged, middle-market companies in the United States. The fund invests in the form of senior secured loans, including first lien, unitranche, and second lien debt instruments. It does not invest in start-up companies or companies having speculative business plans.

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