The current average analyst rating on the shares is hold, with no strong buy or buy ratings, 2 hold ratings, and 2 sell or strong sell ratings.
The average consensus recommendation for the investment management and fund operators peer group is buy. Wall Street's median 12-month price target for BlackRock TCP Capital Corp is $3.50, about 0% even with its August 5 closing price of $3.50.
The stock recently traded at 5 times next 12-month earnings versus a P/E of 6 three months ago.
Q2 net investment income declines
BlackRock TCP Capital said second-quarter net investment income declined year over year to $18.1 million.
The company reported second-quarter EPS of $0.02, basic EPS of $0.02, net asset value per share of $6.58, and .
BlackRock TCP Capital reported a net realized loss of $14.8 million in the quarter, mainly from the exit of its AutoAlert investment, partially offset by gains from the Thras.io paydown.
The board has engaged KBW to support a strategic review process focused on long-term shareholder value.
Portfolio sale and leverage reduction
The specialty finance firm announced a $523 million portfolio sale it said is intended to accelerate portfolio repositioning and reduce leverage.
The company said the transaction and post-quarter repayments are expected to lower its net leverage ratio from 1.38x to about 0.4x. It said the sale enhances investment capacity and financial flexibility.
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