Gladstone Capital Corporation (NASDAQ:GLAD) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Analyst consensus is “Hold”: Of five analysts covering Gladstone Capital, three rate the stock a hold and two rate it a buy. The average 12-month price target is $21.67, versus a recent price of $19.65.
• Institutional ownership has increased: UBS Group raised its holdings by 18%, while several other investment firms initiated positions; institutions now own 10.72% of the company.
• Recent financial performance was mixed: Quarterly EPS of $0.49 exceeded estimates by $0.01, but revenue of $24.5 million fell short of the $24.9 million consensus. The company also paid a special $0.18-per-share dividend.

Shares of Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) have been assigned an average rating of "Hold" from the five analysts that are currently covering the company, Marketbeat reports. Three equities research analysts have rated the stock with a hold rating and two have given a buy rating to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $21.6667.

Separately, Weiss Ratings raised shares of Gladstone Capital from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 2nd.

Institutional Trading of Gladstone Capital

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. UBS Group AG raised its holdings in shares of Gladstone Capital by 18.0% in the fourth quarter. UBS Group AG now owns 271,702 shares of the investment management company's stock worth $5,613,000 after buying an additional 41,484 shares during the period. Closed End Fund Advisors Inc. purchased a new position in Gladstone Capital during the 4th quarter valued at $551,000. Miller Global Investments LLC purchased a new position in Gladstone Capital during the 2nd quarter valued at $311,000. Entropy Technologies LP bought a new position in Gladstone Capital in the 1st quarter valued at $179,000. Finally, Sunbelt Securities Inc. bought a new position in Gladstone Capital in the 1st quarter valued at $142,000. 10.72% of the stock is currently owned by institutional investors.

Gladstone Capital Stock Up 1.7%

NASDAQ GLAD opened at $19.65 on Friday. The firm has a market cap of $443.89 million, a price-to-earnings ratio of 9.54 and a beta of 0.93. The business has a 50-day moving average price of $19.59 and a 200-day moving average price of $19.01. Gladstone Capital has a twelve month low of $16.54 and a twelve month high of $23.67.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last issued its earnings results on Tuesday, August 4th. The investment management company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.01. Gladstone Capital had a return on equity of 9.67% and a net margin of 50.48%.The company had revenue of $24.50 million for the quarter, compared to the consensus estimate of $24.90 million. Research analysts expect that Gladstone Capital will post 1.99 EPS for the current fiscal year.

Gladstone Capital Dividend Announcement

The business also recently announced a special dividend, which was paid on Wednesday, September 16th. Investors of record on Thursday, September 10th were given a dividend of $0.18 per share. The ex-dividend date was Thursday, September 10th. Gladstone Capital's dividend payout ratio is currently 87.38%.

About Gladstone Capital

Gladstone Capital Corporation is a business development company that provides financing to privately held, lower middle-market companies in the United States. The company primarily seeks to support established businesses with debt and equity capital, often working with companies that may have limited access to traditional bank financing.

Its investment activities generally include senior and subordinated secured loans, unsecured debt, and equity investments. Gladstone Capital may provide financing for acquisitions, recapitalizations, refinancing, growth initiatives, and other corporate purposes.

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