Golub Capital BDC, Inc. (GBDC) - What Are Researchers Saying About This Stock?

Key Points

• Analysts maintain a Moderate Buy consensus on Golub Capital BDC, with four buy ratings, one strong buy, and two holds. The average 12-month price target is $13.90, above the stock’s reported $12.01 price.
• Golub Capital BDC reported quarterly EPS of $0.34, slightly exceeding the $0.33 consensus estimate, though revenue of $98.53 million was below the $189.91 million estimate.
• The company pays a quarterly dividend of $0.33 per share, representing a 11.0% annualized yield, while director Lawrence Golub sold approximately $21.9 million worth of shares.

Golub Capital BDC, Inc. (NASDAQ:GBDC - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the seven brokerages that are presently covering the stock, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a hold recommendation, four have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $13.90.

A number of research firms have weighed in on GBDC. Keefe, Bruyette & Woods cut their target price on shares of Golub Capital BDC from $14.00 to $13.50 and set an "outperform" rating for the company in a research report on Wednesday, August 5th. Wall Street Zen raised Golub Capital BDC from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Weiss Ratings downgraded Golub Capital BDC from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, October 9th. Finally, Zacks Research upgraded Golub Capital BDC from a "strong sell" rating to a "hold" rating in a research note on Monday, July 6th.

Golub Capital BDC Price Performance

Shares of Golub Capital BDC stock opened at $12.01 on Tuesday. The firm has a fifty day simple moving average of $12.70 and a 200-day simple moving average of $12.88. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 1.22. Golub Capital BDC has a 1-year low of $11.77 and a 1-year high of $14.40. The stock has a market capitalization of $3.12 billion, a price-to-earnings ratio of 18.48 and a beta of 0.41.

Golub Capital BDC (NASDAQ:GBDC - Get Free Report) last posted its quarterly earnings data on Monday, August 3rd. The investment management company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.01. Golub Capital BDC had a net margin of 21.45% and a return on equity of 9.91%. The business had revenue of $98.53 million during the quarter, compared to the consensus estimate of $189.91 million. During the same period in the prior year, the firm earned $0.39 EPS. On average, sell-side analysts expect that Golub Capital BDC will post 1.36 earnings per share for the current year.

Golub Capital BDC Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 29th. Investors of record on Monday, September 14th were paid a dividend of $0.33 per share. The ex-dividend date was Monday, September 14th. This represents a $1.32 annualized dividend and a yield of 11.0%. Golub Capital BDC's dividend payout ratio is presently 203.08%.

Insider Transactions at Golub Capital BDC

In other Golub Capital BDC news, Director Lawrence Golub sold 1,676,387 shares of the firm's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $13.06, for a total value of $21,893,614.22. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 1.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Levin Capital Strategies L.P. increased its position in Golub Capital BDC by 12.9% in the first quarter. Levin Capital Strategies L.P. now owns 11,628 shares of the investment management company's stock worth $147,000 after purchasing an additional 1,328 shares during the period. Allworth Financial LP bought a new stake in Golub Capital BDC during the 2nd quarter worth about $25,000. Comprehensive Money Management Services LLC raised its holdings in Golub Capital BDC by 15.2% during the 1st quarter. Comprehensive Money Management Services LLC now owns 15,125 shares of the investment management company's stock worth $191,000 after purchasing an additional 2,000 shares during the last quarter. Burk Holdings LLC acquired a new position in Golub Capital BDC during the 2nd quarter valued at about $30,000. Finally, Royal Bank of Canada lifted its position in Golub Capital BDC by 2.4% during the 1st quarter. Royal Bank of Canada now owns 100,967 shares of the investment management company's stock valued at $1,278,000 after purchasing an additional 2,401 shares during the period. 42.38% of the stock is currently owned by institutional investors and hedge funds.

Golub Capital BDC Company Profile

Golub Capital BDC, Inc is a business development company that provides financing to middle-market companies. The company primarily invests in privately owned businesses through senior secured loans, unitranche loans, second-lien loans, subordinated debt and, to a lesser extent, equity investments. Its objective is to generate current income and long-term capital appreciation by supporting companies across a range of industries.

Golub Capital BDC generally works with companies that are backed by private equity firms and provides customized financing for acquisitions, recapitalizations, refinancings, growth initiatives and other corporate purposes.

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