Golub Capital BDC, Inc. (NASDAQ:GBDC) Stock Has Consensus Target Price of $13.90

Key Points

• Analyst sentiment is moderately bullish: Seven analysts give Golub Capital BDC a consensus “Moderate Buy” rating, with an average 12-month price target of $13.90 versus its recent $12.41 price.
• Quarterly earnings slightly exceeded expectations: Golub reported adjusted EPS of $0.34, ahead of the $0.33 consensus estimate, while quarterly revenue was $98.53 million. The company is forecast to earn $1.36 per share for the fiscal year.
• The stock offers a high dividend yield but has payout concerns: The quarterly dividend is $0.33, equivalent to $1.32 annually and a 10.6% yield; however, the payout ratio is elevated at 203.08%. Director Lawrence Golub also sold approximately $21.9 million in shares.

Shares of Golub Capital BDC, Inc. (NASDAQ:GBDC - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the seven ratings firms that are covering the firm, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating on the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $13.90.

A number of equities analysts have recently issued reports on GBDC shares. Wall Street Zen upgraded Golub Capital BDC from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Keefe, Bruyette & Woods decreased their price objective on Golub Capital BDC from $14.00 to $13.50 and set an "outperform" rating on the stock in a report on Wednesday, August 5th. Zacks Research upgraded Golub Capital BDC from a "strong sell" rating to a "hold" rating in a research report on Monday, July 6th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Golub Capital BDC in a research note on Monday.

Insider Buying and Selling at Golub Capital BDC

In other news, Director Lawrence Golub sold 1,676,387 shares of the company's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $13.06, for a total value of $21,893,614.22. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On Golub Capital BDC

Several institutional investors and hedge funds have recently made changes to their positions in the business. Corient Private Wealth LP purchased a new stake in Golub Capital BDC during the second quarter valued at about $50,833,000. OMERS ADMINISTRATION Corp bought a new position in shares of Golub Capital BDC during the second quarter valued at about $47,015,000. Bank of America Corp DE purchased a new position in shares of Golub Capital BDC in the second quarter worth about $43,696,000. Lalia Capital LLC purchased a new position in shares of Golub Capital BDC in the second quarter worth about $33,556,000. Finally, Legal & General Group Plc purchased a new position in shares of Golub Capital BDC in the second quarter worth about $31,483,000. Institutional investors own 42.38% of the company's stock.

Golub Capital BDC Stock Performance

NASDAQ GBDC opened at $12.41 on Friday. Golub Capital BDC has a 52-week low of $11.77 and a 52-week high of $14.40. The company has a fifty day moving average of $12.92 and a 200-day moving average of $12.89. The company has a market capitalization of $3.22 billion, a P/E ratio of 19.09 and a beta of 0.39. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.33 and a current ratio of 1.33.

Golub Capital BDC (NASDAQ:GBDC - Get Free Report) last released its earnings results on Monday, August 3rd. The investment management company reported $0.34 EPS for the quarter, beating analysts' consensus estimates of $0.33 by $0.01. Golub Capital BDC had a return on equity of 9.91% and a net margin of 21.45%.The business had revenue of $98.53 million for the quarter, compared to analysts' expectations of $189.91 million. During the same quarter in the prior year, the firm earned $0.39 earnings per share. As a group, equities research analysts predict that Golub Capital BDC will post 1.36 EPS for the current fiscal year.

Golub Capital BDC Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Stockholders of record on Monday, September 14th will be issued a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 10.6%. The ex-dividend date is Monday, September 14th. Golub Capital BDC's payout ratio is presently 203.08%.

About Golub Capital BDC

Golub Capital BDC, Inc NASDAQ: GBDC is a business development company that invests in and provides financing to middle-market companies. The company seeks to generate current income and, to a lesser extent, capital appreciation by making investments in privately held businesses.

Its investment portfolio primarily consists of senior secured loans, including first-lien and unitranche loans, as well as second-lien debt, subordinated debt and equity investments. Golub Capital BDC generally works with companies across a range of industries and may support acquisitions, recapitalizations, refinancings, growth initiatives and other corporate financing needs.

Golub Capital BDC was established in 2010 and is externally managed by GC Advisors LLC, an affiliate of Golub Capital, a private credit asset manager.

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