Great Elm Capital Corp (NASDAQ:GECC) Stock Continues to Trend In a Narrow Range

Great Elm Capital Corp (NASDAQ:GECC) fell 2% in the previous trading. The company has announced its Q3 2021 and nine months ending September 30, 2021, financial results. Net investment income in Q3 was $1.6 million compared to $1.9 million a year ago.

Market Stats

On Friday, GECC stock fell 2% at $3.44 with more than 216K shares, compared to its average volume of 93K shares. The stock has moved within a range of $3.4000 – 3.5200 after opening the trade at $3.45.

Announces Third Quarter 2021 Financial Results

In Q3 2021, the company reported $0.07 net investment income per share based on a weighted average of 23.914 million shares outstanding. Certain one-off items associated with legal fees accrued due to Full Circle investment legacy affected NII, leading to NII drop.The company bought a majority stake in Lenders Funding LLC in a deal that strategically strengthens the company’s finance platform.

 Lenders Funding is a private risk-sharing and funding source for asset-based lenders. The company issued around $13.25 million in shares at NAV to make the acquisition. As of September 30, 2021, the company had a NAV of $3.7 per share with an asset coverage ratio of 163.8%. GECC board approved a $0.1 per share quarterly dividend for Q1 2022. Investors should watch GECC.

Key Quote

Peter A. Reed, GECC’s Chief Executive Officer, stated, “We continued to grow net assets during the quarter and further diversified our business with the acquisition of a majority ownership stake in Lenders Funding. This transaction furthers GECC’s vision of growing its specialty finance platform and we expect will provide GECC with additional access to proprietary overflow opportunities in addition to visibility into the specialty finance market. We continue to build upon our strategy of creating a portfolio of specialty finance solutions with the ability to service the lending needs of small businesses at varying stages of their development. We deployed $71.1 million into new investments during the quarter and grew total investments to $246.7 million at fair value as of September 30, 2021. We are encouraged by the portfolio’s outlook and our robust pipeline of new investments.”

Traders Corner

GECC stock is trading above the 20-Day and 50-Day Moving averages of $3.48 and $3.46 respectively. However, the stock is trading above the 200-Day moving average of $3.28. The stock is up 7% in the past 3-month.