Why Triangle Capital Stock Plunged 26%

Shares of Triangle Capital Corporation (NYSE: TCAP) are down about 26% as of 1:00 p.m. EDT after the company reported a dismal earnings report, slashing its dividend by 33% from $0.45 per quarter to $0.30. Material underperformance in its investment portfolio has been a recurring problem for the Raleigh, North Carolina-based lender and investor.

Triangle Capital has suffered from outsize losses in its investment portfolio, making it a likely candidate for a dividend cut. Investments it underwrote during a period spanning from 2013 to 2015 are to blame, producing the largest losses as they seasoned.

This quarter, Triangle Capital reported that it earned $0.36 per share in net investment income, which excludes investment losses. Including net losses from impairments, however, the company lost $1.20 per share this quarter alone, erasing a full year of dividends at the current run rate. 

Continue reading

Source: Fool.com