Garrison Capital (NASDAQ:GARS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Monday, Zacks.com reports.

According to Zacks, “Garrison Capital Inc. is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation by making investments primarily in debt securities and loans of the United States-based middle-market companies, which it defines as those having annual earnings before interest, taxes and depreciation, or EBITDA of certain amount. It invests or provides direct lending in first lien senior secured loans, second lien senior secured loans, one-stop senior secured loans or unitranche loans, subordinated or mezzanine loans, unsecured consumer loans and to a lesser extent, selected equity co-investments in middle-market companies. The Company intends to generate risk-adjusted net returns by assembling a portfolio of investments. The Company’s investments include debt investments, preferred and minority equity investments (equity) of diversified companies and a portfolio of unsecured small balance consumer loans. “

Other research analysts have also issued reports about the company. Maxim Group lowered Garrison Capital from a “buy” rating to a “hold” rating in a report on Wednesday, March 25th. ValuEngine upgraded Garrison Capital from a “strong sell” rating to a “sell” rating in a research note on Monday, June 1st.

Shares of GARS stock traded down $0.10 during trading hours on Monday, reaching $3.24. 231,200 shares of the company’s stock were exchanged, compared to its average volume of 108,174. Garrison Capital has a fifty-two week low of $1.04 and a fifty-two week high of $7.21. The stock has a market capitalization of $52.00 million, a P/E ratio of -1.05 and a beta of 1.64. The business has a fifty day moving average price of $2.85 and a 200-day moving average price of $4.03. The company has a quick ratio of 9.18, a current ratio of 9.18 and a debt-to-equity ratio of 2.77.

Garrison Capital (NASDAQ:GARS) last issued its quarterly earnings results on Monday, May 11th. The investment management company reported $0.15 EPS for the quarter, hitting analysts’ consensus estimates of $0.15. Garrison Capital had a positive return on equity of 8.53% and a negative net margin of 132.41%. The company had revenue of $8.04 million during the quarter, compared to analyst estimates of $8.54 million. As a group, research analysts expect that Garrison Capital will post 0.59 EPS for the current fiscal year.

Several hedge funds and other institutional investors have recently modified their holdings of GARS. Morgan Stanley raised its stake in shares of Garrison Capital by 207.0% in the first quarter. Morgan Stanley now owns 58,777 shares of the investment management company’s stock valued at $101,000 after purchasing an additional 39,631 shares in the last quarter. National Asset Management Inc. raised its stake in shares of Garrison Capital by 7.5% in the fourth quarter. National Asset Management Inc. now owns 27,100 shares of the investment management company’s stock valued at $158,000 after purchasing an additional 1,900 shares in the last quarter. Signaturefd LLC bought a new stake in Garrison Capital in the first quarter valued at $263,000. BlackRock Inc. bought a new stake in Garrison Capital in the first quarter valued at $1,229,000. Finally, Virtus ETF Advisers LLC grew its position in Garrison Capital by 36.5% in the fourth quarter. Virtus ETF Advisers LLC now owns 389,234 shares of the investment management company’s stock valued at $2,265,000 after acquiring an additional 104,030 shares during the period. Institutional investors and hedge funds own 25.86% of the company’s stock.

Garrison Capital Company Profile

Garrison Capital Inc is a business development company specializing in investments primarily in the debt and equity of middle market companies. It seeks to invest in first lien senior secured loans, second lien senior secured loans, “one-stop” senior secured or “unitranche” loans, subordinated or mezzanine loans, unsecured consumer loans and to a lesser extent, selected equity co-investments in middle-market companies, warrants and minority equity securities in United States middle-market companies.

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