National Securities Reiterates Neutral Rating for Golub Capital BDC Inc. (GBDC)
Golub Capital BDC Inc. (NASDAQ:GBDC)‘s stock had its “neutral” rating reissued by equities researchers at National Securities in a report issued on Friday. They currently have a $18.00 price objective on the investment management company’s stock. National Securities’ target price indicates a potential downside of 2.17% from the stock’s previous close.
The analysts wrote, “Fiscal 4Q16 & 2016 Recap: Golub Capital BDC (GBDC) reported core NII/share of $0.32, matching consensus and exceeding our estimate of $0.31. For the fiscal year 2016 the company reported core NII/share of $1.28 versus our estimate of $1.27 and consensus estimates of $1.26. All-in effective yield improved Q/Q to 8.39% from 7.93%, causing NIM (net investment margin) to improve 46 bps Q/Q. Portfolio growth was strong with $179.4 million of investment commitments during the quarter compared to $151.3 million of repayments and sales. For the fiscal year, the portfolio at fair value increased by $130.8 million to $1.66 billion. Golub continues to have solid origination volume despite a slowing middle market due in large part the $18 billion in assets under management (AUM) across the platform that enables the company to make larger commitments across the platform while not putting too much concentration in any single vehicle, such as GBDC. Asset quality remained very strong with non-accruals in the portfolio unchanged at 0.3% of par and the company declared a $0.25/share special dividend for fiscal 1Q17. We are maintaining our fiscal 2017 core NII/share estimate of $1.28 and are rolling out our fiscal 2018 core NII/share estimate of $1.30. We are reiterating our NEUTRAL rating and $18 price target. Our $18 price target implies an estimated 2018 P/NII (Price/NII) of 13.7x, dividend yield of 9.9%, and P/NAV (Price/NAV) of 1.09x compared to the BDC sector averages of 9.7x, 9.7%, and 0.88x, respectively. “
Several other brokerages also recently weighed in on GBDC. Zacks Investment Research downgraded shares of Golub Capital BDC from a “hold” rating to a “sell” rating in a report on Thursday, August 4th. TheStreet raised shares of Golub Capital BDC from a “hold” rating to a “buy” rating in a report on Wednesday, August 10th. Finally, Janney Montgomery Scott initiated coverage on shares of Golub Capital BDC in a report on Tuesday, September 20th. They issued a “neutral” rating and a $18.00 target price on the stock. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and two have given a buy rating to the company. The company currently has a consensus rating of “Hold” and an average target price of $17.88.
Shares of Golub Capital BDC (NASDAQ:GBDC) opened at 18.40 on Friday. The company’s 50-day moving average is $18.22 and its 200 day moving average is $18.19. Golub Capital BDC has a 52 week low of $14.80 and a 52 week high of $19.76. The stock has a market cap of $976.23 million, a PE ratio of 13.02 and a beta of 0.61.
Golub Capital BDC (NASDAQ:GBDC) last issued its quarterly earnings data on Wednesday, November 16th. The investment management company reported $0.32 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.32. Golub Capital BDC had a net margin of 54.12% and a return on equity of 7.80%. The company had revenue of $34.50 million for the quarter, compared to the consensus estimate of $32.71 million. During the same period last year, the firm posted $0.32 EPS. Golub Capital BDC’s revenue for the quarter was up 7.4% on a year-over-year basis. Analysts forecast that Golub Capital BDC will post $1.27 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 29th. Investors of record on Monday, December 12th will be paid a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 6.96%. The ex-dividend date is Thursday, December 8th. Golub Capital BDC’s dividend payout ratio (DPR) is 96.24%.
Several hedge funds have recently made changes to their positions in the stock. Bank of New York Mellon Corp boosted its stake in shares of Golub Capital BDC by 15,497.6% in the second quarter. Bank of New York Mellon Corp now owns 3,320,109 shares of the investment management company’s stock valued at $59,994,000 after buying an additional 3,298,823 shares during the period. UBS Group AG boosted its stake in shares of Golub Capital BDC by 7.3% in the third quarter. UBS Group AG now owns 1,323,035 shares of the investment management company’s stock valued at $24,569,000 after buying an additional 90,016 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in shares of Golub Capital BDC by 0.3% in the third quarter. Price T Rowe Associates Inc. MD now owns 1,216,520 shares of the investment management company’s stock valued at $22,591,000 after buying an additional 3,390 shares during the period. Muzinich & Co. Inc. boosted its stake in shares of Golub Capital BDC by 91.8% in the third quarter. Muzinich & Co. Inc. now owns 1,114,602 shares of the investment management company’s stock valued at $20,698,000 after buying an additional 533,414 shares during the period. Finally, Confluence Investment Management LLC boosted its stake in shares of Golub Capital BDC by 0.6% in the third quarter. Confluence Investment Management LLC now owns 785,122 shares of the investment management company’s stock valued at $14,580,000 after buying an additional 4,737 shares during the period. Hedge funds and other institutional investors own 42.46% of the company’s stock.
About Golub Capital BDC
Golub Capital BDC Inc is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation by investing primarily in senior secured, one stop, second lien and subordinated loans of, and warrants and minority equity securities in, United States middle market companies.
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