(RAND) Rand Capital - Ratings and Ratios

Rand Capital Corporation (NASDAQ:RAND) is a business development company (BDC) that specializes in subordinated debt with warrants or preferred equity and venture capital investments. The firm focuses on capital growth and lower middle market investments within private equity and targets early to late-stage private businesses in the venture capital space. It avoids investments in the real estate sector, prioritizing instead industries such as software, professional services, manufacturing, consumer goods, healthcare, automotive, and public stocks. Geographically, the company prefers to invest in businesses operating in the East or Midwest regions of the U.S.

Typically, Rand Capital invests between $0.75 million and $5 million, with an initial target size of $1.5 million. It seeks companies with over $2 million in revenue or those generating between $1.5 million and $5 million in EBITDA. The firm prefers to hold a minority stake in its portfolio companies and often takes a Board seat to guide growth. Investments are generally held for up to five years, aligning with its strategy to support growth-stage businesses.

From a technical perspective, RANDs stock has shown recent weakness, trading below its 20-day SMA of 25.13 at a last price of 22.37. The 50-day SMA is 22.29, and the 200-day SMA is 15.71, indicating a potential sideways trend in the near term. The ATR of 1.40 suggests moderate volatility. On the fundamental side, the company has a market cap of $66.54 million, a P/E ratio of 5.17, and a P/B ratio of 0.94, indicating it is trading near book value. The P/S ratio of 7.97 and an RoE of 18.26 highlight its profitability relative to its revenue.

Ticker Symbol: RAND
Exchange: NASDAQ
Type: common stock
Country Origin: United States
GICS Sub Industry: Asset Management & Custody Banks

Average Volume 20d: 22,987
Last Price: 22.37
SMA 20: 25.13
SMA 50: 22.29
SMA 200: 15.71
ATR: 1.40

Market Cap: 66.54M USD
P/E: 5.17
P/E Forward: 0.00
P/B: 0.94
P/S: 7.97
RoE: 18.26

3-Month Forecast: Based on the current technical and fundamental data, RAND is likely to experience sideways movement in the near term, with potential volatility due to its moderate ATR. The stock is trading below its 20-day SMA but near its 50-day SMA, suggesting short-term weakness but possible stabilization. Fundamentally, the low P/E ratio and strong RoE may attract value investors, while the high P/S ratio could act as a headwind. Expect RAND to remain range-bound between $20 and $25 over the next three months, with potential upside if the company demonstrates improved revenue growth or announces favorable portfolio exits.