Gladstone Capital Corporation (GLAD) Given “Sell” Rating at National Securities
National Securities reissued their sell rating on shares of Gladstone Capital Corporation (NASDAQ:GLAD) in a report published on Wednesday morning. National Securities currently has a $8.00 price objective on the investment management company’s stock.
“• For fiscal 4Q17, GLAD posted NII/share of $0.21, matching both our estimate and the quarterly dividend. Other credits from the adviser fell to $632,000 from $1.3 million Q/Q as fee income bounced back from nearly nothing to a healthier $611,000.
• GLAD’s portfolio grew to $352.4 million as of 9/30/17, up from $345.5 million the quarter prior and $322.1 million at the end of fiscal 2016. The company’s originations for the fiscal year totaled $112.1 million, a substantial increase from $80.0 million the prior fiscal year. Management commented that the first fiscal quarter of 2018 is off to a strong start with $28.5 million of originations and $14.7 million of repayments thus far in the quarter ended 12/31/17.
• Non-accruals remained stable on the quarter, still consisting of Alloy Die Casting and Sunshine Media, with combined non-accruals at cost of $27.9 million or 6.8% of the portfolio, consistent with the prior quarter.
• We are revising our fiscal 2018 NII/share estimate to $0.85 from $0.87 and are rolling out our fiscal 2019 NII/share estimate of $0.86. Despite what we expect will be relatively stable earnings and NAV, we note that at 17% above NAV we think shares remain materially overvalued, especially for a LMM lender with a significant portion of second lien investments and nearly 7% of the book still on non-accrual.,” National Securities’ analyst commented.
A number of other equities research analysts also recently weighed in on GLAD. BidaskClub downgraded Gladstone Capital Corporation from a hold rating to a sell rating in a report on Thursday, July 27th. Wedbush started coverage on Gladstone Capital Corporation in a report on Wednesday, September 27th. They set a neutral rating and a $9.40 target price for the company. Finally, Ladenburg Thalmann Financial Services started coverage on Gladstone Capital Corporation in a report on Friday, October 6th. They set a neutral rating for the company. One analyst has rated the stock with a sell rating, five have issued a hold rating and one has assigned a buy rating to the stock. The stock presently has a consensus rating of Hold and an average price target of $9.16.
Gladstone Capital Corporation (NASDAQ GLAD) traded up $0.03 on Wednesday, hitting $9.83. The stock had a trading volume of 86,200 shares, compared to its average volume of 134,096. Gladstone Capital Corporation has a 12 month low of $8.05 and a 12 month high of $10.12. The company has a quick ratio of 10.52, a current ratio of 4.33 and a debt-to-equity ratio of 0.42. The firm has a market capitalization of $261.79, a P/E ratio of 11.67 and a beta of 1.25.
Gladstone Capital Corporation (NASDAQ:GLAD) last posted its earnings results on Monday, November 20th. The investment management company reported $0.21 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.21. Gladstone Capital Corporation had a return on equity of 9.94% and a net margin of 43.78%. The company had revenue of $10.83 million during the quarter, compared to the consensus estimate of $10.72 million. sell-side analysts expect that Gladstone Capital Corporation will post 0.86 EPS for the current year.
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The business also recently declared a monthly dividend, which will be paid on Friday, December 29th. Investors of record on Tuesday, December 19th will be given a $0.07 dividend. This represents a $0.84 dividend on an annualized basis and a dividend yield of 8.55%. The ex-dividend date is Monday, December 18th. Gladstone Capital Corporation’s payout ratio is currently 62.22%.
In other Gladstone Capital Corporation news, President Robert L. Marcotte bought 4,000 shares of the firm’s stock in a transaction on Thursday, August 31st. The shares were purchased at an average price of $9.22 per share, for a total transaction of $36,880.00. Following the completion of the transaction, the president now directly owns 370,720 shares in the company, valued at approximately $3,418,038.40. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 6.45% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in GLAD. Bank of Montreal Can bought a new position in Gladstone Capital Corporation in the second quarter valued at about $1,946,000. Mckinley Capital Management LLC Delaware bought a new stake in shares of Gladstone Capital Corporation during the second quarter worth about $1,200,000. GSA Capital Partners LLP grew its holdings in shares of Gladstone Capital Corporation by 193.0% during the third quarter. GSA Capital Partners LLP now owns 89,073 shares of the investment management company’s stock worth $846,000 after purchasing an additional 58,673 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of Gladstone Capital Corporation during the second quarter worth about $542,000. Finally, Goldman Sachs Group Inc. bought a new stake in shares of Gladstone Capital Corporation during the second quarter worth about $415,000. Hedge funds and other institutional investors own 14.58% of the company’s stock.
Gladstone Capital Corporation Company Profile
Gladstone Capital Corporation is a closed-end, non-diversified management investment company, operating as a business development company (BDC). The objectives of the Company are to achieve and grow current income by investing in debt securities of established businesses that it believes will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding 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 believes can grow over time to permit it to sell its equity investments for capital gains.
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