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Posts Tagged ‘Kohlberg Capital Corporation’

Get an 11% Dividend Yield from this Private Equity Company

Kohlberg Capital Corporation (NASDAQ: KCAP) is a private equity and venture capital firm specializing in mid market, buyouts, and mezzanine investments. It focuses on mature and middle market companies.

For the three months ended June 30, 2012, Kohlberg Capital reported total investment income of approximately $9.5 million, as compared to approximately $6.1 million for the three months ended June 30, 2011. Investment income from debt securities increased 30% to $2.7 millionas a result of the continued growth in their debt securities portfolio.  Their debt securities portfolio was $143.3 million at June 30, 2012, as compared to $114.7 million at December 31, 2011.   At June 30, 2012, the fair value of KCAP Financial’s investments totaled approximately $299 million.

KCAP Financial is projected to increase EPS by 20% in FY 12 and 18% in FY 13.  KCAP Financial is up 35% in price over the past 52 weeks.

For the second quarter of 2012, KCAP Financial increased its dividend 33% to$0.24 per share from the 2012 first quarter dividend of $0.18 per share. KCAP Financial has a current dividend yield of 11.06%.

Dayl Pearson, chairman and chief executive officer, noted, “As expected, our strong second quarter results are indicative of the full and successful integration of Trimaran Advisors and to the continued performance of our investment portfolio, as we migrate to higher yielding middle market loans.”

On August 25, 2012 Columbine Capital Services, Inc. upgraded KCAP FINANCIAL INC from NEUTRAL to FAVORABLE.

On August 21, Zacks Investment Research, Inc. upgraded KCAP FINANCIAL INC from HOLD to BUY.

On August 17, KCAP Financial is upgraded to Buy from Hold at Stifel Nicolaus.

Kohlberg Capital has an equity summary score of 7.5 out of 10 for a Bullish Outlook.  Analysts at First Call have a 2.0 rating for a Buy recommendation.  Kohlberg Capital has a 12-month price target of $9.50, a 10% increase from current stock price.

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