Gladstone Investment (NASDAQ:GAIN) Downgraded to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Gladstone Investment from “hold” to “sell,” although the broader analyst consensus remains “Buy” with an average price target of $16.75.
• Gladstone Investment reported quarterly EPS of $0.26, exceeding the $0.22 consensus estimate, while revenue of $28.36 million also topped expectations.
• The stock opened at $15.90, with a market capitalization of approximately $633 million and a 52-week trading range of $13.11 to $17.14; institutional investors own 11.85% of shares.

Gladstone Investment (NASDAQ:GAIN - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

A number of other equities analysts have also weighed in on the stock. Weiss Ratings lowered shares of Gladstone Investment from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, September 1st. Zacks Research raised Gladstone Investment from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the stock. According to MarketBeat.com, the company has an average rating of "Buy" and an average price target of $16.75.

Gladstone Investment Stock Performance

NASDAQ:GAIN opened at $15.90 on Friday. The firm has a market cap of $633.14 million, a P/E ratio of 3.80 and a beta of 0.77. Gladstone Investment has a fifty-two week low of $13.11 and a fifty-two week high of $17.14. The firm has a 50-day simple moving average of $16.36 and a two-hundred day simple moving average of $15.57.

Gladstone Investment (NASDAQ:GAIN - Get Free Report) last issued its earnings results on Thursday, August 6th. The investment management company reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.04. Gladstone Investment had a net margin of 158.95% and a return on equity of 5.90%. The firm had revenue of $28.36 million for the quarter, compared to the consensus estimate of $25.75 million. On average, equities research analysts predict that Gladstone Investment will post 1 EPS for the current year.

Institutional Trading of Gladstone Investment

Large investors have recently modified their holdings of the company. Confluence Investment Management LLC bought a new position in Gladstone Investment in the second quarter valued at about $572,000. UBS Group AG grew its stake in shares of Gladstone Investment by 47.1% during the 4th quarter. UBS Group AG now owns 713,016 shares of the investment management company's stock valued at $9,961,000 after purchasing an additional 228,168 shares during the period. Van ECK Associates Corp grew its stake in shares of Gladstone Investment by 35.8% during the 2nd quarter. Van ECK Associates Corp now owns 804,098 shares of the investment management company's stock valued at $12,431,000 after purchasing an additional 212,170 shares during the period. Cetera Investment Advisers increased its position in shares of Gladstone Investment by 2.3% during the 1st quarter. Cetera Investment Advisers now owns 31,653 shares of the investment management company's stock valued at $449,000 after purchasing an additional 717 shares during the last quarter. Finally, International Assets Investment Management LLC purchased a new stake in shares of Gladstone Investment during the 4th quarter valued at about $31,000. Institutional investors own 11.85% of the company's stock.

Gladstone Investment Company Profile

Gladstone Investment NASDAQ: GAIN is a publicly traded business development company (BDC) that focuses on providing debt and equity financing to U.S. middle-market companies. As an externally managed closed-end fund, Gladstone Investment seeks to generate current income and capital appreciation for its shareholders by originating senior secured debt, subordinated debt and equity investments. The firm typically targets established businesses with revenues between $10 million and $150 million, across a range of industry sectors including business services, health care, industrials and specialty manufacturing.

The company's investment strategy centers on deploying capital through first-lien and second-lien term loans, mezzanine debt and equity co-investments, often including warrants or other equity kickers.

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