Golub Capital BDC, Inc. $GBDC Stake Raised by Sage Mountain Advisors LLC

Key Points

• Sage Mountain Advisors increased its stake in Golub Capital BDC by 11.0%, adding 332,443 shares to hold 3,360,932 shares (about $45.6M), making GBDC its 7th-largest position.
• Golub recently paid a quarterly dividend of $0.33 per share (annualized $1.32, yield 10.1%), with a dividend payout ratio of 105.6%, signaling a potentially unsustainable payout level.
• The firm reported Q4 EPS of $0.38 (in line with estimates) but revenue of $110.18M missed the $208.89M consensus; shares trade near $13.11 with a market cap around $3.45B and a consensus price target of $14.38.

Sage Mountain Advisors LLC increased its holdings in shares of Golub Capital BDC, Inc. (NASDAQ:GBDC - Free Report) by 11.0% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 3,360,932 shares of the investment management company's stock after buying an additional 332,443 shares during the period. Golub Capital BDC comprises 2.4% of Sage Mountain Advisors LLC's investment portfolio, making the stock its 7th largest holding. Sage Mountain Advisors LLC owned approximately 1.28% of Golub Capital BDC worth $45,608,000 as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of the company. Strs Ohio increased its position in shares of Golub Capital BDC by 2.9% in the 3rd quarter. Strs Ohio now owns 16,237,782 shares of the investment management company's stock valued at $222,295,000 after purchasing an additional 450,126 shares during the last quarter. Van ECK Associates Corp increased its position in shares of Golub Capital BDC by 9.0% in the 3rd quarter. Van ECK Associates Corp now owns 4,843,816 shares of the investment management company's stock valued at $66,312,000 after purchasing an additional 401,723 shares during the last quarter. Bank of America Corp DE increased its position in shares of Golub Capital BDC by 5.7% in the 3rd quarter. Bank of America Corp DE now owns 3,829,788 shares of the investment management company's stock valued at $52,430,000 after purchasing an additional 207,998 shares during the last quarter. Sound Income Strategies LLC increased its position in shares of Golub Capital BDC by 6.6% in the 4th quarter. Sound Income Strategies LLC now owns 3,602,799 shares of the investment management company's stock valued at $49,791,000 after purchasing an additional 224,142 shares during the last quarter. Finally, Generali Asset Management SPA SGR increased its position in shares of Golub Capital BDC by 4.7% in the 3rd quarter. Generali Asset Management SPA SGR now owns 2,630,739 shares of the investment management company's stock valued at $36,015,000 after purchasing an additional 118,034 shares during the last quarter. 42.38% of the stock is owned by hedge funds and other institutional investors.

Golub Capital BDC Trading Up 2.9%

NASDAQ GBDC opened at $13.11 on Wednesday. The company has a debt-to-equity ratio of 1.25, a current ratio of 2.24 and a quick ratio of 2.24. The firm's fifty day moving average price is $12.46 and its 200 day moving average price is $13.32. The company has a market capitalization of $3.45 billion, a price-to-earnings ratio of 10.49 and a beta of 0.40. Golub Capital BDC, Inc. has a 12 month low of $11.77 and a 12 month high of $15.63.

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

Golub Capital BDC Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 30th. Shareholders of record on Friday, March 13th were given a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 10.1%. The ex-dividend date of this dividend was Friday, March 13th. Golub Capital BDC's dividend payout ratio (DPR) is presently 105.60%.

Analysts Set New Price Targets

A number of brokerages have commented on GBDC. Capital One Financial set a $15.00 price objective on shares of Golub Capital BDC in a research report on Thursday, January 15th. Wall Street Zen raised shares of Golub Capital BDC from a "sell" rating to a "hold" rating in a research report on Saturday. Weiss Ratings reissued a "hold (c)" rating on shares of Golub Capital BDC in a research report on Friday, March 27th. Wells Fargo & Company dropped their price objective on shares of 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. Finally, Lucid Cap Mkts raised shares of Golub Capital BDC to a "strong-buy" rating in a research report on Thursday, January 15th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $14.38.

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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