Today, National Securities Reaffirmed Neutral Rating for Gladstone Capital Corp. (GLAD)

Today, National Securities Reaffirmed Neutral Rating for Gladstone Capital Corp. (GLAD)

National Securities reissued their neutral rating on shares of Gladstone Capital Corp. (NASDAQ:GLAD) in a research report report published on Wednesday. They currently have a $8.00 price target on the investment management company’s stock.

“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. ,” the firm’s analyst wrote.

Separately, Zacks Investment Research raised Gladstone Capital Corp. from a sell rating to a hold rating in a report on Tuesday, August 23rd. Five equities research analysts have rated the stock with a hold rating, The stock currently has an average rating of Hold and an average price target of $7.56.

Gladstone Capital Corp. (NASDAQ:GLAD) opened at 8.10 on Wednesday. Gladstone Capital Corp. has a 52-week low of $4.71 and a 52-week high of $8.89. The firm has a 50-day moving average price of $8.05 and a 200 day moving average price of $7.89.

Gladstone Capital Corp. (NASDAQ:GLAD) last posted its earnings results on Tuesday, November 22nd. The investment management company reported $0.21 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.21 by $0.00. Gladstone Capital Corp. had a return on equity of 10.14% and a net margin of 29.07%. On average, equities research 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. Investors of record on Thursday, November 17th will be paid a dividend of $0.07 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 10.36%. The ex-dividend date is Tuesday, November 15th. Gladstone Capital Corp.’s payout ratio is currently 155.56%.

In related news, President Robert L. Marcotte acquired 25,000 shares of the firm’s stock in a transaction that occurred on Tuesday, October 25th. The shares were acquired at an average price of $7.98 per share, with a total value of $199,500.00. Following the completion of the purchase, the president now directly owns 321,950 shares in the company, valued at $2,569,161. The purchase was disclosed in a document filed with the SEC, which is available through this link. Corporate insiders own 6.49% of the company’s stock.

Several hedge funds have recently bought and sold shares of the stock. UBS Group AG raised its stake in Gladstone Capital Corp. by 7.2% in the third quarter. UBS Group AG now owns 437,271 shares of the investment management company’s stock worth $3,555,000 after buying an additional 29,452 shares during the last quarter. LPL Financial LLC raised its stake in Gladstone Capital Corp. by 4.3% in the first quarter. LPL Financial LLC now owns 290,023 shares of the investment management company’s stock worth $2,117,000 after buying an additional 11,897 shares during the last quarter. BlackRock Group LTD raised its stake in Gladstone Capital Corp. by 14.6% in the second quarter. BlackRock Group LTD now owns 116,902 shares of the investment management company’s stock worth $846,000 after buying an additional 14,874 shares during the last quarter. Van ECK Associates Corp raised its stake in Gladstone Capital Corp. by 12.9% in the second quarter. Van ECK Associates Corp now owns 108,111 shares of the investment management company’s stock worth $783,000 after buying an additional 12,335 shares during the last quarter. Finally, Boston Partners raised its stake in Gladstone Capital Corp. by 8.0% in the third quarter. Boston Partners now owns 80,607 shares of the investment management company’s stock worth $655,000 after buying an additional 5,939 shares during the last quarter. 8.56% of the stock is currently owned by institutional investors and hedge funds.

About Gladstone Capital Corp.

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