Great Elm Capital (NASDAQ:GECC) Share Price Passes Below 50-Day Moving Average – Should You Sell?

Great Elm Capital Corp. (NASDAQ:GECC)’s stock price passed below its 50-day moving average during trading on Friday . The stock has a 50-day moving average of $10.70 and traded as low as $10.01. Great Elm Capital shares last traded at $10.40, with a volume of 25,279 shares changing hands.

Great Elm Capital Stock Performance

The company has a debt-to-equity ratio of 1.83, a current ratio of 0.11 and a quick ratio of 0.11. The firm has a market capitalization of $120.06 million, a price-to-earnings ratio of 15.07 and a beta of 1.52. The firm’s fifty day moving average is $10.70 and its 200 day moving average is $10.39.

Great Elm Capital (NASDAQ:GECC) last announced its quarterly earnings results on Monday, March 10th. The financial services provider reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.35 by ($0.15). The firm had revenue of $9.10 million for the quarter, compared to analyst estimates of $11.46 million. Great Elm Capital had a net margin of 15.00% and a return on equity of 11.60%. During the same quarter in the prior year, the firm earned $0.55 earnings per share. On average, analysts predict that Great Elm Capital Corp. will post 1.43 EPS for the current fiscal year.

Great Elm Capital Cuts Dividend

The firm also recently declared a dividend, which was paid on Wednesday, January 15th. Stockholders of record on Tuesday, December 31st were issued a dividend of $0.05 per share. The ex-dividend date was Tuesday, December 31st. Great Elm Capital’s dividend payout ratio is currently 477.42%.

Hedge Funds Weigh In On Great Elm Capital

Several hedge funds have recently bought and sold shares of the business. Two Sigma Securities LLC acquired a new position in Great Elm Capital during the 4th quarter worth $129,000. Virtu Financial LLC acquired a new position in shares of Great Elm Capital during the 4th quarter worth about $176,000. Northern Trust Corp bought a new stake in Great Elm Capital during the 4th quarter valued at approximately $187,000. Finally, Northern Right Capital Management L.P. grew its holdings in Great Elm Capital by 29.7% in the 4th quarter. Northern Right Capital Management L.P. now owns 1,035,838 shares of the financial services provider’s stock valued at $11,384,000 after buying an additional 237,367 shares during the last quarter. 38.75% of the stock is owned by institutional investors and hedge funds.

About Great Elm Capital

Great Elm Capital Corp. is a business development company which specializes in loan and mezzanine, middle market investments. It invests in the debt instruments of middle market companies. The fund prefers to invest in media, commercial services and supplies, healthcare, telecommunication services, communications equipment.