M Holdings Securities Inc. Sells 331,463 Shares of Golub Capital BDC, Inc. $GBDC

Key Points

• M Holdings Securities cut its stake in Golub Capital BDC (NASDAQ: GBDC) by 89.7% in Q3, selling 331,463 shares and leaving it with 38,025 shares valued at about $521,000.
• Golub announced a quarterly dividend of $0.33 (annualized $1.32), yielding 11.0%, but the payout ratio is a high 105.6%, raising questions about sustainability.
• Analysts hold a consensus Buy rating with a $14.38 price target, yet GBDC trades near $11.97 (50-day $12.91 / 200-day $13.62) and recent analyst views range from Strong Buy to Hold.

M Holdings Securities Inc. reduced its stake in Golub Capital BDC, Inc. (NASDAQ:GBDC - Free Report) by 89.7% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 38,025 shares of the investment management company's stock after selling 331,463 shares during the period. M Holdings Securities Inc.'s holdings in Golub Capital BDC were worth $521,000 at the end of the most recent quarter.

Several other large investors also recently modified their holdings of GBDC. Allworth Financial LP grew its stake in Golub Capital BDC by 116.8% in the 2nd quarter. Allworth Financial LP now owns 2,192 shares of the investment management company's stock valued at $32,000 after buying an additional 1,181 shares during the last quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA bought a new position in Golub Capital BDC in the 3rd quarter valued at about $33,000. MTM Investment Management LLC acquired a new stake in Golub Capital BDC during the second quarter worth approximately $41,000. CWM LLC lifted its position in Golub Capital BDC by 13,588.0% during the third quarter. CWM LLC now owns 3,422 shares of the investment management company's stock worth $47,000 after acquiring an additional 3,397 shares during the last quarter. Finally, Main Street Group LTD bought a new stake in shares of Golub Capital BDC during the third quarter worth approximately $51,000. 42.38% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on GBDC shares. Wells Fargo & Company decreased 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. Weiss Ratings reissued a "hold (c)" rating on shares of Golub Capital BDC in a report on Monday, December 29th. Keefe, Bruyette & Woods reduced their price target on Golub Capital BDC from $15.00 to $14.00 and set an "outperform" rating for the company in a research note on Friday, February 6th. Lucid Cap Mkts raised Golub Capital BDC to a "strong-buy" rating in a report on Thursday, January 15th. Finally, Wall Street Zen upgraded Golub Capital BDC from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $14.38.

Golub Capital BDC Stock Performance

NASDAQ GBDC opened at $11.97 on Friday. The firm has a 50-day moving average price of $12.91 and a two-hundred day moving average price of $13.62. 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 capitalization of $3.15 billion, a P/E ratio of 9.58 and a beta of 0.45. The company has a quick ratio of 2.24, a current ratio of 2.24 and a debt-to-equity ratio of 1.25.

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

Golub Capital BDC Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 30th. Shareholders of record on Friday, March 13th will be issued a $0.33 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.32 annualized dividend and a yield of 11.0%. Golub Capital BDC's 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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