Great Elm Capital Corp. (NASDAQ:GECC) director Matthew A. Drapkin has recently increased his stake in the company, purchasing additional shares valued at approximately $45,179. The transactions, which took place over two consecutive days, saw Drapkin acquire shares at prices ranging from $10.01 to $10.12.
Drapkin, who serves as a director for Great Elm Capital, executed these purchases directly and indirectly through investment entities. On the first day, he acquired 3,189 shares at an average price of $10.01 each. The following day, Drapkin added another 1,310 shares to his holdings, this time at an average price of $10.12 per share. These transactions have increased his direct ownership in the company, reflecting a positive sentiment from an insider towards the firm's prospects.
The shares were bought through a combination of direct purchases and through entities that Drapkin has a beneficial interest in. According to the footnotes in the report, the shares are held by Northern Right Capital (QP), L.P. and separate managed accounts managed by Northern Right Capital Management, L.P., for which Drapkin may be deemed to have beneficial ownership.
The recent acquisitions by Drapkin demonstrate a continued commitment to Great Elm Capital Corp. and may be seen by investors as a sign of confidence in the company's future performance. As of the latest filing, Drapkin's total direct and indirect holdings in Great Elm Capital Corp. reflect significant investment in the company's common stock.
In other recent news, Great Elm Capital Corp. reported a strong Q2 performance for 2024, focusing on strategic growth and portfolio enhancement. The company raised over $90 million in fresh capital, strengthening its financial position and enabling larger-scale investment activities. However, the net asset value (NAV) per share decreased to $12.06, primarily due to nonaccruals in two portfolio companies. Net investment income (NII) per share was reported at $0.32, slightly down from the previous quarter's $0.37, attributed to cash drag and increased share count from equity issuance.
In the face of these developments, Great Elm Capital Corp. is actively pursuing attractive risk-adjusted return investments, including an expansion into CLO products. The company is also evaluating options to refinance its baby bond maturity in 2025. Despite a decline in NAV and ongoing macroeconomic volatility, the company's CEO, Matt Kaplan, expressed confidence in the company's positioning for future growth.
These recent developments highlight Great Elm Capital Corp.'s commitment to its long-term growth strategy, even amidst challenging economic conditions. The company anticipates increased income from its CLO-focused JV and other strategic investments, signaling a positive outlook for the future.
InvestingPro Insights
In light of the recent share acquisitions by Great Elm Capital Corp. (NASDAQ:GECC) director Matthew A. Drapkin, a closer look at the company's financial metrics and market performance may provide investors with additional context. With a market capitalization of approximately $105.75 million and a P/E ratio of 8.32, GECC presents itself as a company with a relatively modest valuation in the market. The company's revenue for the last twelve months as of Q2 2024 stands at $36.9 million, showcasing a solid 20.0% growth rate, which could be indicative of underlying business strength.
Investors may also find the company's dividend policy particularly noteworthy. Great Elm Capital Corp. has maintained dividend payments for 9 consecutive years, with a substantial dividend yield of 13.82% as of the latest data. This commitment to returning value to shareholders is further underscored by the company's profitability over the last twelve months. Such a high yield might appeal to income-focused investors, especially in an environment where reliable income streams are highly valued.
One of the InvestingPro Tips for GECC highlights the volatility in the stock price, which could be a point of consideration for investors with a lower risk tolerance. Additionally, the company's short-term obligations exceeding its liquid assets may warrant attention from those closely monitoring financial stability. For those interested in delving deeper into GECC's financials and market performance, InvestingPro offers additional tips and insights, including 5 more tips that can be found at https://www.investing.com/pro/GECC.
Overall, the insider buying activity coupled with the company's dividend history and recent financial performance provides a multifaceted view of Great Elm Capital Corp. that may influence investor sentiment and decision-making.
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