- American Capital (ACAS +2%) reported gains in both income and book value after the close on Wednesday. A fast pace of buybacks (3.6% of the float in Q3) done at a massive discount to book value, pushed along the quarterly advance in book value.
- Nevertheless, the company is running out stock - today's float of about 260M shares compares to roughly 380M when American Capital began buying back shares four years ago.
- Cantor Fitzgerald upgrades to Buy from Hold. The $19 price target is 38% above last night's close, and a 7% discount to Sept. 30 book value of $20.44.
- Previously: Buybacks boost returns at American Capital (Nov. 4)
- Previously: American Capital beats by $0.03, beats on revenue (Nov. 4)