Gladstone Capital Corporation (NASDAQ:GLAD) Announces $0.10 Special Dividend

Key Points

• Gladstone Capital Corporation declared a special dividend of $0.10 per share, with an ex-dividend date of September 23rd, and payment scheduled for September 29th.
• The company has a high payout ratio of 98.5%, indicating dividends are covered by earnings, but future sustainability may be at risk if earnings decline.
• Analysts forecast that Gladstone Capital will earn $2.03 per share next year, resulting in a potential payout ratio of 97.5% against its annual dividend of $1.98.

Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) declared a special dividend on Saturday, September 13th. Investors of record on Tuesday, September 23rd will be given a dividend of 0.10 per share by the investment management company on Monday, September 29th. The ex-dividend date of this dividend is Tuesday, September 23rd.

Gladstone Capital has a payout ratio of 98.5% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Equities research analysts expect Gladstone Capital to earn $2.03 per share next year, which means the company should continue to be able to cover its $1.98 annual dividend with an expected future payout ratio of 97.5%.

Gladstone Capital Stock Performance

Shares of GLAD traded down $0.19 during trading hours on Monday, hitting $23.33. The stock had a trading volume of 145,717 shares, compared to its average volume of 110,854. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.08 and a current ratio of 0.08. The firm has a market capitalization of $520.85 million, a price-to-earnings ratio of 6.88 and a beta of 1.02. Gladstone Capital has a fifty-two week low of $21.96 and a fifty-two week high of $30.43. The firm has a 50-day moving average price of $27.09 and a 200 day moving average price of $26.58.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last posted its quarterly earnings data on Monday, August 4th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.50. The business had revenue of $21.66 million for the quarter, compared to the consensus estimate of $21.93 million. Gladstone Capital had a net margin of 84.60% and a return on equity of 9.43%. As a group, research analysts anticipate that Gladstone Capital will post 2.03 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on GLAD. Oppenheimer increased their target price on shares of Gladstone Capital from $24.00 to $26.00 and gave the company a "market perform" rating in a research report on Wednesday, August 6th. LADENBURG THALM/SH SH upgraded shares of Gladstone Capital to a "hold" rating in a research report on Wednesday, August 6th. Finally, B. Riley upgraded shares of Gladstone Capital to a "hold" rating in a research report on Monday, June 16th. Three research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $24.50.

About Gladstone Capital

Gladstone Capital Corporation is a business development company specializing in lower middle market, growth capital, add on acquisitions, change of control, buy & build strategies, debt refinancing, debt investments in senior term loans, revolving loans, secured first and second lien term loans, senior subordinated loans, unitranche loans, junior subordinated loans, and mezzanine loans and equity investments in the form of common stock, preferred stock, limited liability company interests, or warrants.

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