FBR Capital Thinks Emergent Capital Inc’s Stock is Going to Recover

By Carrie Williams

FBR Capital analyst Bob Ramsey reiterated a Buy rating on Emergent Capital Inc (NYSE: EMG) today and set a price target of $4. The company’s shares opened today at $2.69, close to its 52-week low of $2.53.

Ramsey noted:

“We reiterate our Outperform rating on Emergent Capital following 3Q16 results. Another quarter without many maturities put further strain on EMG’s unrestricted cash position, which declined roughly one-third, or $7.1M, in 3Q. Unless maturities pick up, the company only has enough cash for two to three more quarters. The search for a more permanent solution is still underway, but the company declined to provide further details on strategic alternatives. To reflect the quarter’s loss and lower revenues, we reduce our 2016 EPS estimate to ($1.36), from ($0.95), and our 2017 EPS estimate to ($0.60), from ($0.10). We also reduce our price target to $4, from $6, equal to 0.7x 3Q17E book value.”

According to TipRanks.com, Ramsey is a 1-star analyst with an average return of -0.8% and a 58.3% success rate. Ramsey covers the Financial sector, focusing on stocks such as Seacoast Banking Corporation Of Florida, Pacific Premier Bancorp Inc, and Huntington Bancshares Inc.

Emergent Capital Inc has an analyst consensus of Moderate Buy.

The company has a one year high of $4.98 and a one year low of $2.53. Currently, Emergent Capital Inc has an average volume of 76.35K.

Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EMG in relation to earlier this year. Most recently, in April 2016, NATHAN GILBERT E, a Director at EMG bought 3,615 shares for a total of $14,568.

Emergent Capital, Inc. operates as a finance company, which provides customized liquidity solutions to owners of illiquid financial assets. It invests in life settlements. The company purchases individual policies and portfolios of life insurance policies. Emergent Capital was founded on December 15, 2006 and is headquartered in Boca Raton, FL.