Gladstone Capital Corp. (GLAD) Stock Rating Reaffirmed by National Securities
Gladstone Capital Corp. (NASDAQ:GLAD)‘s stock had its “neutral” rating reissued by investment analysts at National Securities in a research note issued on Wednesday. They currently have a $8.00 price objective on the investment management company’s stock. National Securities’ price target suggests a potential downside of 1.48% from the company’s previous close.
The analysts wrote, “Fiscal 4Q16 and 2016 Recap: Gladstone Capital Corp. (GLAD) reported fiscal 4Q16 NII/share of $0.21, matching both our estimate and the consensus estimate. For the full fiscal year ended 9/30/16 the company reported NII/share of $0.84, also in-line with our expectations and consensus. While NAV/share decreased 5% Y/Y it was up over 8% Q/Q and the company’s portfolio health has improved, in our opinion. Gladstone’s energy exposure has been reduced from 13.9% of the portfolio at cost to 11.5% of the portfolio at cost. Non-accruals were largely flat, finishing the fiscal year at 6.9% of the portfolio at amortized cost from 6.4% a year earlier. However, the company had significant unrealized appreciation related to previous underperforming credit RBC Acquisition Corp. of roughly $12 million during fiscal 2016, with the sale of the company occurring subsequent to quarter-end, boosting NAV/share 8.5% Q/Q to $8.62 from $7.95. Additionally, syndicated loans represented 9.0% of the portfolio at amortized cost at the end of the fiscal year from 15.0% a year prior. We expect the $37.0 million of sales proceeds from the sale of RBC Acquisition and the estimated $17.3 million from the common stock offering will deleverage the balance sheet significantly in fiscal 1Q17. We are maintaining our fiscal 2017 NII/share estimate of $0.86 and are rolling out our fiscal 2018 NII/share estimate of $0.88. Our $8 price target implies an estimated 2018 (Price/Net Investment Income) P/NII of 9.1x, dividend yield of 10.5%, and (Price/Net Asset Value) P/NAV of 0.92x compared to the BDC sector averages of 9.8x, 9.6%, and 0.90x, respectively. “
Separately, Zacks Investment Research raised shares of Gladstone Capital Corp. from a “sell” rating to a “hold” rating in a research report on Wednesday, October 5th. Five equities research analysts have rated the stock with a hold rating, The stock has a consensus rating of “Hold” and a consensus price target of $7.56.
Gladstone Capital Corp. (NASDAQ:GLAD) opened at 8.12 on Wednesday. The company’s market cap is $189.55 million. The firm has a 50-day moving average of $8.05 and a 200-day moving average of $7.86. Gladstone Capital Corp. has a one year low of $4.71 and a one year high of $8.89.
Gladstone Capital Corp. (NASDAQ:GLAD) last released its quarterly earnings data on Tuesday, November 22nd. The investment management company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.00. Gladstone Capital Corp. had a net margin of 29.07% and a return on equity of 10.31%. On average, analysts predict that Gladstone Capital Corp. will post $0.84 EPS for the current year.
The business also recently disclosed a monthly dividend, which will be paid on Wednesday, November 30th. Stockholders of record on Thursday, November 17th will be issued a dividend of $0.07 per share. The ex-dividend date is Tuesday, November 15th. This represents a $0.84 annualized dividend and a dividend yield of 10.34%. Gladstone Capital Corp.’s payout ratio is 155.56%.
In related news, President Robert L. Marcotte acquired 25,000 shares of the company’s stock in a transaction dated Tuesday, October 25th. The shares were bought at an average price of $7.98 per share, for a total transaction of $199,500.00. Following the acquisition, the president now owns 321,950 shares in the company, valued at approximately $2,569,161. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 6.49% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of GLAD. Acrospire Investment Management LLC increased its position in 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 valued at $101,000 after buying an additional 6,160 shares during the last quarter. Citadel Advisors LLC bought a new position in Gladstone Capital Corp. during the third quarter valued at about $109,000. TCI Wealth Advisors Inc. increased its position in 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 valued at $112,000 after buying an additional 289 shares during the last quarter. Koshinski Asset Management Inc. increased its position in Gladstone Capital Corp. by 0.6% in the third quarter. Koshinski Asset Management Inc. now owns 19,748 shares of the investment management company’s stock valued at $161,000 after buying an additional 122 shares during the last quarter. Finally, Royal Bank of Canada increased its position in 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 valued at $170,000 after buying an additional 13,402 shares during the last quarter. Institutional investors own 8.19% of the company’s stock.
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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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