Analysts Conflicted on These Financial Names: Consolidated-Tomoka Land Co (NYSE MKT: CTO) and Medley Capital Corp (NYSE: MCC)

By Austin Angelo

Analysts have been eager to weigh in on the Financial sector with new ratings on Consolidated-Tomoka Land Co (NYSE MKT: CTO) and Medley Capital Corp (NYSE: MCC).

Consolidated-Tomoka Land Co (NYSE MKT: CTO)

FBR Capital analyst David Corak reiterated a Buy rating on Consolidated-Tomoka Land Co (NYSE MKT: CTO) today and set a price target of $80. The company’s shares opened today at $53.85.

Corak commented:

“CTO completed the sale of roughly 1,581 acres of land, equal to about 16% of its land holdings, to Minto Communities for roughly $27.2 million (~$17,200 an acre), resulting in an estimated gain of $20.0 million.”

According to TipRanks.com, Corak is a 3-star analyst with an average return of 7.1% and a 54.8% success rate. Corak covers the Financial sector, focusing on stocks such as National Storage Affiliates Trust, Preferred Apartment Communities, and Bluerock Residential Growth.

Consolidated-Tomoka Land Co has an analyst consensus of Moderate Buy, with a price target consensus of $80.

Medley Capital Corp (NYSE: MCC)

In a report issued on February 10, Christopher Nolan from FBR Capital reiterated a Hold rating on Medley Capital Corp (NYSE: MCC), with a price target of $8. The company’s shares opened today at $8, close to its 52-week high of $8.06.

Nolan observed:

“MCC reported F1Q17 (quarter-end December 31, 2016) net investment income EPS of $0.19, slightly below our estimate and the consensus expectation of $0.20. EPS failed to cover the quarterly dividend of $0.22 due to a $1M QOQ decline in revenues and a reduced management fee waiver of $0.1M (versus $1.7M in F4Q16). Asset quality remained an issue as NAV/share decreased by $0.10 (or 4% annualized) on a linked-quarter basis and $1.62 (or 15%) from F4Q15. We are lowering our forward EPS estimates on lower investment asset growth and yield assumptions. Thus, we are cautious on the outlook for the current quarterly dividend given our new EPS estimates do not fully cover it. Further, based on F1Q17 results, asset quality continues to be an issue affecting NAV/share. While MCC shares currently trade at a significant discount to NAV/share, we currently do not see an upside catalyst in MCC’s F1Q17 earnings that would argue for a valuation multiple expansion.”

According to TipRanks.com, Nolan is a 4-star analyst with an average return of 7.3% and a 65.5% success rate. Nolan covers the Financial sector, focusing on stocks such as Pennantpark Investment Corp, Atlantic Capital Bancshares, and Raymond James Financial.

Currently, the analyst consensus on Medley Capital Corp is Hold and the average price target is $8, representing a 0.0% upside.

In a report issued on February 10, Jefferies also reiterated a Hold rating on the stock with a $8 price target.

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