BlackRock TCP Capital Shares Plunge 15% Amid Writedowns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22h ago
0mins
Source: seekingalpha
- Portfolio Write-downs: BlackRock TCP Capital disclosed significant write-downs on its troubled portfolio, leading to a 15% plunge in shares during Monday afternoon trading, indicating market concerns over asset quality.
- Expected NAV Decline: According to a recent SEC filing, the net asset value per share is expected to decline by approximately 19% by the end of 2025, dropping from $8.71 at the end of Q3 to $7.06, reflecting investor pessimism about future earnings.
- Management Fee Waiver: The company announced a one-third waiver of its management fee for Q4, aimed at alleviating investor concerns and improving cash flow, although this may impact short-term revenue.
- Net Investment Income Outlook: The anticipated net investment income for the quarter ending December 31, 2025, is projected to be between $0.24 and $0.26, trailing the consensus estimate of $0.27, further indicating the pressure on the company's profitability.
Analyst Views on TCPC
Wall Street analysts forecast TCPC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TCPC is 6.25 USD with a low forecast of 5.50 USD and a high forecast of 7.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
1 Hold
1 Sell
Moderate Sell
Current: 5.100
Low
5.50
Averages
6.25
High
7.00
Current: 5.100
Low
5.50
Averages
6.25
High
7.00
About TCPC
BlackRock TCP Capital Corp. is an externally managed, closed-end, non-diversified management investment company. The Company is a specialty finance company focused on direct lending to middle-market companies as well as small businesses. The Company’s investment objective is to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection. It invests primarily in the debt of middle-market companies as well as small businesses, including senior secured loans, junior loans, mezzanine debt and bonds. Such investments may include an equity component, and, to a lesser extent, it may make equity investments directly. It invests in various industries, including automobiles, Internet software and service, software, diversified financial services, diversified consumer services, health care technology, healthcare providers and services, media, construction and engineering, and real estate management and development, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
