Zacks Investment Research upgraded shares of Gladstone Capital (NASDAQ:GLAD) from a hold rating to a buy rating in a research note released on Wednesday. They currently have $9.75 price target on the investment management company’s stock.
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. “
GLAD has been the subject of several other reports. TheStreet cut shares of Gladstone Capital from a b rating to a c+ rating in a research note on Tuesday, February 6th. Ladenburg Thalmann raised shares of Gladstone Capital from a neutral rating to a buy rating in a research note on Wednesday, February 7th. ValuEngine raised shares of Gladstone Capital from a buy rating to a strong-buy rating in a research note on Wednesday, March 7th. Finally, National Securities raised shares of Gladstone Capital from a sell rating to a neutral rating and set a $8.00 price objective for the company in a research note on Tuesday, February 6th. Five analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The stock currently has an average rating of Hold and an average target price of $9.10.
Gladstone Capital (NASDAQ:GLAD) last issued its quarterly earnings results on Monday, February 5th. The investment management company reported $0.21 earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.21. The company had revenue of $10.86 million during the quarter, compared to the consensus estimate of $10.72 million. Gladstone Capital had a return on equity of 9.97% and a net margin of 58.48%. analysts forecast that Gladstone Capital will post 0.86 EPS for the current year.
The business also recently disclosed a monthly dividend, which will be paid on Monday, April 30th. Stockholders of record on Friday, April 20th will be paid a dividend of $0.07 per share. The ex-dividend date is Thursday, April 19th. This represents a $0.84 annualized dividend and a dividend yield of 9.73%. Gladstone Capital’s dividend payout ratio is presently 100.00%.
In related news, President Robert L. Marcotte acquired 11,400 shares of the stock in a transaction dated Thursday, February 8th. The stock was bought at an average cost of $9.04 per share, with a total value of $103,056.00. Following the purchase, the president now directly owns 405,517 shares of the company’s stock, valued at $3,665,873.68. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders have bought a total of 13,729 shares of company stock valued at $124,164 over the last three months. Corporate insiders own 5.89% of the company’s stock.
A number of institutional investors have recently made changes to their positions in the stock. Bank of Montreal Can boosted its position in Gladstone Capital by 15.6% during the 4th quarter. Bank of Montreal Can now owns 245,000 shares of the investment management company’s stock worth $2,256,000 after purchasing an additional 33,000 shares during the period. Arrowstreet Capital Limited Partnership boosted its position in Gladstone Capital by 482.1% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 212,735 shares of the investment management company’s stock worth $1,959,000 after purchasing an additional 176,188 shares during the period. LPL Financial LLC boosted its position in Gladstone Capital by 29.9% during the 4th quarter. LPL Financial LLC now owns 172,925 shares of the investment management company’s stock worth $1,593,000 after purchasing an additional 39,816 shares during the period. Two Sigma Investments LP boosted its position in Gladstone Capital by 356.3% during the 4th quarter. Two Sigma Investments LP now owns 172,443 shares of the investment management company’s stock worth $1,588,000 after purchasing an additional 134,651 shares during the period. Finally, Two Sigma Advisers LP boosted its position in Gladstone Capital by 14.5% during the 4th quarter. Two Sigma Advisers LP now owns 164,009 shares of the investment management company’s stock worth $1,511,000 after purchasing an additional 20,800 shares during the period. 13.63% of the stock is owned by hedge funds and other institutional investors.
Gladstone Capital 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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