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.