Golub Capital BDC, Inc. $GBDC Position Lifted by Sound Income Strategies LLC

Key Points

• Sound Income Strategies LLC raised its stake in Golub Capital BDC by 6.6% in Q4 to 3,602,799 shares (about $49.8M), making GBDC its fourth-largest holding and roughly 2.4% of the firm's portfolio.
• Golub Capital BDC paid a $0.33 quarterly dividend (annualized $1.32) with a yield of about 10.3%, but its dividend payout ratio is 105.6%, which raises sustainability concerns.
• Q4 results showed EPS of $0.38 (matching estimates) but revenue of $110.2M well below the $208.9M consensus, and while analysts have lowered some targets, the average rating remains a Buy with a $14.38 average target price.

Sound Income Strategies LLC grew its holdings in shares of Golub Capital BDC, Inc. (NASDAQ:GBDC - Free Report) by 6.6% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 3,602,799 shares of the investment management company's stock after purchasing an additional 224,142 shares during the quarter. Golub Capital BDC makes up about 2.4% of Sound Income Strategies LLC's investment portfolio, making the stock its 4th biggest position. Sound Income Strategies LLC owned 1.37% of Golub Capital BDC worth $49,791,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA purchased a new position in shares of Golub Capital BDC in the 3rd quarter worth $33,000. CWM LLC raised its position in shares of Golub Capital BDC by 13,588.0% in the 3rd quarter. CWM LLC now owns 3,422 shares of the investment management company's stock worth $47,000 after buying an additional 3,397 shares during the period. Main Street Group LTD purchased a new position in shares of Golub Capital BDC in the 3rd quarter worth $51,000. Advisory Services Network LLC purchased a new position in shares of Golub Capital BDC in the 3rd quarter worth $77,000. Finally, Farther Finance Advisors LLC purchased a new position in shares of Golub Capital BDC in the 3rd quarter worth $78,000. 42.38% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Keefe, Bruyette & Woods cut their target price on Golub Capital BDC from $15.00 to $14.00 and set an "outperform" rating on the stock in a research report on Friday, February 6th. Wells Fargo & Company cut their target price on Golub Capital BDC from $14.00 to $13.00 and set an "overweight" rating on the stock in a research report on Friday, February 6th. Lucid Cap Mkts raised Golub Capital BDC to a "strong-buy" rating in a research report on Thursday, January 15th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Golub Capital BDC in a research report on Friday, March 27th. Finally, Capital One Financial set a $15.00 target price on Golub Capital BDC in a research report on Thursday, January 15th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $14.38.

Golub Capital BDC Stock Up 0.9%

Shares of NASDAQ GBDC opened at $12.81 on Tuesday. Golub Capital BDC, Inc. has a 12-month low of $11.77 and a 12-month high of $15.63. The company has a market cap of $3.37 billion, a P/E ratio of 10.25 and a beta of 0.40. The company has a current ratio of 2.24, a quick ratio of 2.24 and a debt-to-equity ratio of 1.25. The stock has a fifty day moving average price of $12.53 and a 200 day moving average price of $13.37.

Golub Capital BDC (NASDAQ:GBDC - Get Free Report) last announced its quarterly earnings results on Wednesday, February 4th. The investment management company reported $0.38 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.38. Golub Capital BDC had a return on equity of 10.37% and a net margin of 38.57%.The firm had revenue of $110.18 million during the quarter, compared to the consensus estimate of $208.89 million. During the same period in the prior year, the firm earned $0.42 EPS. Research analysts anticipate that Golub Capital BDC, Inc. will post 1.6 EPS for the current fiscal year.

Golub Capital BDC Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, March 30th. Investors of record on Friday, March 13th were issued a $0.33 dividend. This represents a $1.32 annualized dividend and a yield of 10.3%. The ex-dividend date was Friday, March 13th. Golub Capital BDC's dividend payout ratio is currently 105.60%.

Golub Capital BDC Profile

Golub Capital BDC NASDAQ: GBDC is a publicly traded business development company specializing in providing debt and equity financing solutions to middle-market companies in the United States. Externally managed by Golub Capital LLC, the firm focuses on building a diversified portfolio of senior secured loans, unitranche facilities and second-lien debt instruments designed to support growth, acquisitions and recapitalizations. As a closed-end investment vehicle, GBDC offers investors direct exposure to private credit strategies within a regulated structure.

The company's core business activities center on originating and managing bespoke financing arrangements for U.S.

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