Gladstone Capital Corp. (GLAD) Lifted to “Hold” at Zacks Investment Research
Gladstone Capital Corp. (NASDAQ:GLAD) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Wednesday.
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 reiterated a “neutral” rating and issued a $7.00 target price on shares of Gladstone Capital Corp. in a report on Friday, August 5th. Five investment analysts have rated the stock with a hold rating, Gladstone Capital Corp. presently has a consensus rating of “Hold” and a consensus price target of $7.31.
Gladstone Capital Corp. (NASDAQ:GLAD) opened at 8.21 on Wednesday. Gladstone Capital Corp. has a 12-month low of $4.71 and a 12-month high of $9.09. The stock has a 50 day moving average price of $8.34 and a 200-day moving average price of $7.70.
Gladstone Capital Corp. (NASDAQ:GLAD) last posted its quarterly earnings data on Wednesday, August 3rd. The investment management company reported $0.21 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.21. Gladstone Capital Corp. had a positive return on equity of 10.58% and a negative net margin of 35.47%. On average, equities analysts expect that Gladstone Capital Corp. will post $0.84 earnings per share for the current year.
The business also recently disclosed a monthly dividend, which was paid on Friday, September 30th. Shareholders of record on Wednesday, September 21st were paid a dividend of $0.07 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 10.23%. The ex-dividend date of this dividend was Monday, September 19th. Gladstone Capital Corp.’s dividend payout ratio is presently -147.37%.
In related news, President Robert L. Marcotte acquired 6,000 shares of Gladstone Capital Corp. stock in a transaction on Monday, August 22nd. The shares were bought at an average price of $8.52 per share, for a total transaction of $51,120.00. Following the completion of the purchase, the president now directly owns 290,758 shares in the company, valued at approximately $2,477,258.16. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Terry Lee Brubaker sold 20,876 shares of the business’s stock in a transaction dated Monday, August 15th. The stock was sold at an average price of $8.39, for a total value of $175,149.64. Following the transaction, the chief operating officer now owns 109,610 shares in the company, valued at approximately $919,627.90. The disclosure for this sale can be found here. Company insiders own 6.49% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. Acrospire Investment Management LLC boosted its position in shares of Gladstone Capital Corp. by 79.6% in the second quarter. Acrospire Investment Management LLC now owns 13,899 shares of the investment management company’s stock worth $101,000 after buying an additional 6,160 shares in the last quarter. TCI Wealth Advisors Inc. boosted its position in shares of Gladstone Capital Corp. by 1.9% in the second quarter. TCI Wealth Advisors Inc. now owns 15,534 shares of the investment management company’s stock worth $112,000 after buying an additional 289 shares in the last quarter. Royal Bank of Canada boosted its position in shares of Gladstone Capital Corp. by 133.9% in the second quarter. Royal Bank of Canada now owns 23,412 shares of the investment management company’s stock worth $170,000 after buying an additional 13,402 shares in the last quarter. Sigma Planning Corp bought a new position in shares of Gladstone Capital Corp. during the second quarter worth approximately $212,000. Finally, Prospera Financial Services Inc boosted its position in shares of Gladstone Capital Corp. by 8.1% in the second quarter. Prospera Financial Services Inc now owns 33,500 shares of the investment management company’s stock worth $243,000 after buying an additional 2,500 shares in the last quarter. Institutional investors own 9.34% of the company’s stock.
Gladstone Capital Corp. Company Profile
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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