Gladstone Capital Corp. (GLAD) Raised to Hold at Zacks Investment Research
According to Zacks, “Gladstone Capital Corporation is a specialty finance company that invests in debt securities consisting primarily of senior term loans, senior subordinated loans, and junior subordinated loans in small and medium sized companies. The Company target small and medium sized private businesses that meet some or all of our criteria, including the potential for growth, adequate assets for loan collateral, experienced management teams with significant ownership interest in the business, adequate capitalization, profitable operations based on cash flow, substantial ownership by a buyout fund or a venture capital fund and potential opportunities for us to realize appreciation and gain liquidity in our equity position. “
Separately, National Securities restated a neutral rating and set a $7.00 target price on shares of Gladstone Capital Corp. in a research report on Friday, August 5th. Five investment analysts have rated the stock with a hold rating, The stock presently has a consensus rating of Hold and a consensus target price of $7.31.
Gladstone Capital Corp. (NASDAQ:GLAD) opened at 8.14 on Wednesday. Gladstone Capital Corp. has a one year low of $4.71 and a one year high of $9.13. The company has a 50 day moving average of $8.37 and a 200-day moving average of $7.60.
Gladstone Capital Corp. (NASDAQ:GLAD) last posted its earnings results on Wednesday, August 3rd. The investment management company reported $0.21 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.21. Gladstone Capital Corp. had a negative net margin of 35.47% and a positive return on equity of 10.58%. On average, analysts predict that Gladstone Capital Corp. will post $0.84 earnings per share for the current year.
The company also recently disclosed a monthly dividend, which was paid on Wednesday, August 31st. Shareholders of record on Monday, August 22nd were given a $0.07 dividend. The ex-dividend date was Thursday, August 18th. This represents a $0.84 dividend on an annualized basis and a dividend yield of 10.32%. Gladstone Capital Corp.’s dividend payout ratio (DPR) is currently -147.37%.
In other news, COO Terry Lee Brubaker sold 20,876 shares of the business’s stock in a transaction dated Monday, August 15th. The shares were sold at an average price of $8.39, for a total transaction of $175,149.64. Following the completion of the sale, the chief operating officer now owns 109,610 shares of the company’s stock, valued at $919,627.90. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, President Robert L. Marcotte bought 8,000 shares of the business’s stock in a transaction dated Thursday, August 11th. The shares were bought at an average cost of $8.35 per share, with a total value of $66,800.00. Following the purchase, the president now directly owns 286,758 shares of the company’s stock, valued at $2,394,429.30. The disclosure for this purchase can be found here. 6.49% of the stock is currently owned by company insiders.
Several hedge funds have recently added to or reduced their stakes in GLAD. UBS Group AG boosted its stake in Gladstone Capital Corp. by 3.1% in the first quarter. UBS Group AG now owns 422,393 shares of the investment management company’s stock worth $3,147,000 after buying an additional 12,855 shares in the last quarter. LPL Financial LLC boosted its stake in Gladstone Capital Corp. by 4.3% in the first quarter. LPL Financial LLC now owns 290,023 shares of the investment management company’s stock worth $2,117,000 after buying an additional 11,897 shares in the last quarter. BlackRock Group LTD boosted its stake in Gladstone Capital Corp. by 14.6% in the second quarter. BlackRock Group LTD now owns 116,902 shares of the investment management company’s stock worth $846,000 after buying an additional 14,874 shares in the last quarter. Van ECK Associates Corp boosted its stake in Gladstone Capital Corp. by 12.9% in the second quarter. Van ECK Associates Corp now owns 108,111 shares of the investment management company’s stock worth $783,000 after buying an additional 12,335 shares in the last quarter. Finally, Boston Partners boosted its stake in Gladstone Capital Corp. by 2.1% in the second quarter. Boston Partners now owns 74,668 shares of the investment management company’s stock worth $541,000 after buying an additional 1,530 shares in the last quarter. 9.34% of the stock is owned by institutional investors and hedge funds.
About Gladstone Capital Corp.
Gladstone Capital Corporation is an externally managed, closed-end and non-diversified management investment company. The Company’s investment objectives are to achieve and grow current income by investing in debt securities of established businesses that will provide earnings and cash flow to pay expenses, which make principal and interest payments on its indebtedness and make distributions to stockholders that grow over time, and to provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities of established businesses that it can grow over time to permit customers to sell its equity investments for capital gains.
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