Fifth Street Finance Corp. (NASDAQ:FSC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The brokerage currently has a $6.50 target price on the stock. Zacks Investment Research’s price target suggests a potential upside of 10.17% from the stock’s previous close.

According to Zacks, “FIFTH STREET FINANCE CORP. is a specialty finance company that lends to and invests in small and mid-sized companies in connection with an investment by private equity sponsors. Fifth Street Finance Corp.’s investment objective is to maximize its portfolio’s total return by generating current income from its debt investments and capital appreciation from its equity investments. “

Several other equities analysts have also recently commented on the company. Deutsche Bank AG cut their price target on Fifth Street Finance Corp. from $6.75 to $6.50 and set a “buy” rating for the company in a report on Tuesday, August 16th. National Securities reaffirmed a “neutral” rating and issued a $6.00 price target on shares of Fifth Street Finance Corp. in a report on Thursday, August 11th. Eight research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The company has a consensus rating of “Hold” and an average target price of $6.45.

Analyst Recommendations for Fifth Street Finance Corp. (NASDAQ:FSC)

Fifth Street Finance Corp. (NASDAQ:FSC) traded up 1.03% on Tuesday, reaching $5.90. The company had a trading volume of 668,558 shares. Fifth Street Finance Corp. has a one year low of $4.40 and a one year high of $6.53. The company has a 50-day moving average of $5.58 and a 200 day moving average of $5.50.

The firm also recently declared a monthly dividend, which will be paid on Friday, December 30th. Investors of record on Thursday, December 15th will be issued a dividend of $0.06 per share. The ex-dividend date of this dividend is Tuesday, December 13th. This represents a $0.72 dividend on an annualized basis and a yield of 12.20%. Fifth Street Finance Corp.’s dividend payout ratio is -160.00%.

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In other Fifth Street Finance Corp. news, Director James Castro-Blanco purchased 8,250 shares of the company’s stock in a transaction that occurred on Wednesday, August 31st. The stock was purchased at an average cost of $6.16 per share, with a total value of $50,820.00. Following the acquisition, the director now directly owns 12,300 shares of the company’s stock, valued at approximately $75,768. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 0.08% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. The Manufacturers Life Insurance Company bought a new position in Fifth Street Finance Corp. during the third quarter valued at about $21,791,000. Bank of Montreal Can bought a new position in Fifth Street Finance Corp. during the second quarter valued at about $8,097,000. Ares Management LLC raised its position in Fifth Street Finance Corp. by 112.5% in the third quarter. Ares Management LLC now owns 1,876,907 shares of the company’s stock valued at $10,905,000 after buying an additional 993,699 shares in the last quarter. Mariner Investment Group LLC bought a new position in Fifth Street Finance Corp. during the second quarter valued at about $1,940,000. Finally, PVG Asset Management Corp bought a new position in Fifth Street Finance Corp. during the third quarter valued at about $2,314,000. Hedge funds and other institutional investors own 30.99% of the company’s stock.

Fifth Street Finance Corp. Company Profile

Fifth Street Finance Corp. is a specialty finance company that lends to and invests in small and mid-sized companies, primarily in connection with investments by private equity sponsors. The Company’s investment objective is to maximize the portfolio’s total return by generating current income from the debt investments and capital appreciation from the equity investments.

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