Gladstone Capital Corporation (NASDAQ:GLAD) Declares $0.18 Special Dividend

Key Points

• Gladstone Capital declared a $0.18-per-share special dividend, payable September 16 to shareholders of record on September 10; the ex-dividend date is also September 10.
• The company’s dividend is supported by earnings but has a high payout ratio of 89.6%, with the projected forward payout ratio near 90.9%.
• Gladstone Capital reported quarterly EPS of $0.49, narrowly beating estimates, while shares opened at $20.15 and institutional investors owned 10.72% of the stock.

Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) declared a special dividend on Monday, August 31st. Shareholders of record on Thursday, September 10th will be given a dividend of 0.18 per share by the investment management company on Wednesday, September 16th. The ex-dividend date of this dividend is Thursday, September 10th.

Gladstone Capital has raised its dividend by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 4 years. Gladstone Capital has a payout ratio of 89.6% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. Analysts expect Gladstone Capital to earn $1.98 per share next year, which means the company should continue to be able to cover its $1.80 annual dividend with an expected future payout ratio of 90.9%.

Gladstone Capital Stock Performance

Shares of GLAD opened at $20.15 on Tuesday. The firm has a market cap of $455.19 million, a P/E ratio of 9.78 and a beta of 0.92. Gladstone Capital has a twelve month low of $16.54 and a twelve month high of $26.60. The firm's 50 day moving average price is $19.47 and its two-hundred day moving average price is $18.89.

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

Institutional Trading of Gladstone Capital

Institutional investors and hedge funds have recently modified their holdings of the business. Goldman Sachs Group Inc. grew its position in Gladstone Capital by 1.6% in the first quarter. Goldman Sachs Group Inc. now owns 28,853 shares of the investment management company's stock valued at $792,000 after acquiring an additional 456 shares during the last quarter. Marshall Wace LLP boosted its stake in shares of Gladstone Capital by 1.0% in the 4th quarter. Marshall Wace LLP now owns 110,304 shares of the investment management company's stock valued at $2,279,000 after purchasing an additional 1,041 shares in the last quarter. Ausdal Financial Partners Inc. grew its holdings in shares of Gladstone Capital by 4.3% during the 4th quarter. Ausdal Financial Partners Inc. now owns 29,896 shares of the investment management company's stock valued at $618,000 after purchasing an additional 1,222 shares during the last quarter. Quantbot Technologies LP increased its position in Gladstone Capital by 52.7% during the 2nd quarter. Quantbot Technologies LP now owns 4,272 shares of the investment management company's stock worth $115,000 after purchasing an additional 1,474 shares in the last quarter. Finally, WFA of San Diego LLC bought a new position in Gladstone Capital in the 2nd quarter valued at approximately $42,000. 10.72% of the stock is currently owned by institutional investors.

About Gladstone Capital

Gladstone Capital Corporation is a publicly traded business development company (BDC) that provides debt and equity financing solutions to U.S. lower middle-market companies. Operating under an external management agreement with Gladstone Management L.P., the firm offers senior secured loans, mezzanine debt and equity investments designed to support growth initiatives, acquisitions and recapitalizations. Through its focus on privately held businesses, Gladstone Capital seeks to construct a diversified portfolio across various industry sectors.

Since its formation in 2003, Gladstone Capital has developed a track record of working closely with management teams and business owners to meet their capital needs.

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