Golub Capital BDC, Inc. $GBDC Stake Trimmed by Sound Income Strategies LLC

Key Points

• Sound Income Strategies LLC reduced its Golub Capital BDC stake by 11.7% in the third quarter, selling 453,898 shares and retaining 3.42 million shares worth approximately $41.8 million.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $13.90, compared with the stock’s recent price of $12.10.
• Golub Capital BDC reported quarterly EPS of $0.34, slightly beating estimates, and paid a $0.33 quarterly dividend, representing an annualized yield of approximately 10.9%.

Sound Income Strategies LLC lessened its holdings in shares of Golub Capital BDC, Inc. (NASDAQ:GBDC - Free Report) by 11.7% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 3,422,189 shares of the investment management company's stock after selling 453,898 shares during the quarter. Golub Capital BDC makes up about 1.0% of Sound Income Strategies LLC's portfolio, making the stock its 10th biggest holding. Sound Income Strategies LLC owned approximately 1.32% of Golub Capital BDC worth $41,785,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Allworth Financial LP acquired a new position in Golub Capital BDC during the second quarter worth about $25,000. Burk Holdings LLC acquired a new position in shares of Golub Capital BDC during the 2nd quarter worth approximately $30,000. Main Street Group LTD acquired a new position in shares of Golub Capital BDC during the 1st quarter worth approximately $47,000. Fifth Third Bancorp purchased a new stake in shares of Golub Capital BDC in the first quarter valued at approximately $68,000. Finally, Trust Co. of Vermont acquired a new stake in shares of Golub Capital BDC in the second quarter valued at approximately $77,000. 42.38% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

GBDC has been the subject of several analyst reports. Weiss Ratings restated a "hold (c)" rating on shares of Golub Capital BDC in a report on Monday, September 21st. Zacks Research upgraded shares of Golub Capital BDC from a "strong sell" rating to a "hold" rating in a research report on Monday, July 6th. Keefe, Bruyette & Woods decreased their target price on shares of Golub Capital BDC from $14.00 to $13.50 and set an "outperform" rating on the stock in a report on Wednesday, August 5th. Finally, Wall Street Zen raised shares of Golub Capital BDC from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $13.90.

Golub Capital BDC Trading Down 0.9%

NASDAQ GBDC traded down $0.11 during trading hours on Friday, reaching $12.10. The company had a trading volume of 1,503,101 shares, compared to its average volume of 1,798,596. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 1.22. The stock has a market capitalization of $3.14 billion, a P/E ratio of 18.62 and a beta of 0.41. The stock has a 50-day moving average of $12.83 and a 200 day moving average of $12.90. Golub Capital BDC, Inc. has a 1-year low of $11.77 and a 1-year high of $14.40.

Golub Capital BDC (NASDAQ:GBDC - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The investment management company reported $0.34 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $189.91 million. During the same period in the previous year, the firm earned $0.39 EPS. As a group, research analysts anticipate that Golub Capital BDC, Inc. will post 1.36 earnings per share for the current fiscal year.

Golub Capital BDC Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 29th. Stockholders of record on Monday, September 14th were paid a $0.33 dividend. The ex-dividend date of this dividend was Monday, September 14th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 10.9%. Golub Capital BDC's payout ratio is presently 203.08%.

Insider Buying and Selling at Golub Capital BDC

In related news, Director Lawrence Golub sold 1,676,387 shares of the business's stock in a transaction 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 filing with the SEC, which is accessible through this link. Insiders own 1.40% of the company's stock.

Golub Capital BDC 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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