Could Alcentra Capital Corporation (ABDC) Gain Strenght After Forming Wedge Down Pattern?

May 18, 2018 - By Samual Williams

The stock of Alcentra Capital Corporation (ABDC) formed a down wedge with $6.11 target or 9.00 % below today’s $6.71 share price. The 7 months wedge indicates high risk for the $92.28 million company. If the $6.11 price target is reached, the company will be worth $8.31M less.
Falling wedges are poor performers for bullish breakouts and are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 11% and 15%. The average rise is 32% and the decline is 15%. The falling wedges has high throwback and pullback rate: 56%, 69% and the percent of wedges meeting target is not very high.

The stock decreased 1.47% or $0.1 during the last trading session, reaching $6.71. About 43,192 shares traded. Alcentra Capital Corporation (NASDAQ:ABDC) has declined 49.03% since May 18, 2017 and is downtrending. It has underperformed by 60.58% the S&P500.

Analysts await Alcentra Capital Corporation (NASDAQ:ABDC) to report earnings on August, 2. They expect $0.20 earnings per share, down 44.44 % or $0.16 from last year’s $0.36 per share. ABDC’s profit will be $2.75 million for 8.39 P/E if the $0.20 EPS becomes a reality. After $0.27 actual earnings per share reported by Alcentra Capital Corporation for the previous quarter, Wall Street now forecasts -25.93 % negative EPS growth.

Alcentra Capital Corporation (NASDAQ:ABDC) Ratings Coverage

Among 2 analysts covering Alcentra Capital (NASDAQ:ABDC), 0 have Buy rating, 0 Sell and 2 Hold. Therefore 0 are positive. Alcentra Capital had 2 analyst reports since January 11, 2018 according to SRatingsIntel. The company was upgraded on Thursday, January 11 by Raymond James. The firm earned “Hold” rating on Thursday, March 15 by Keefe Bruyette & Woods.

Another recent and important Alcentra Capital Corporation (NASDAQ:ABDC) news was published by Seekingalpha.com which published an article titled: “Alcentra Capital’s (ABDC) CEO David Scopelliti on Q1 2018 Results – Earnings Call Transcript” on May 08, 2018.

Alcentra Capital Corporation is a business development firm specializing in investments in lower middle-market companies. The company has market cap of $92.28 million. The fund seeks to invest in healthcare, business services, defense, government services, telecom and technology, media, infrastructure maintenance and logistics, and gas and oil services sector. It currently has negative earnings. It focuses on investment opportunities headquartered in North America.

Alcentra Capital Corporation (NASDAQ:ABDC) Ratings Chart

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