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

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) announced a special dividend on Friday, September 12th. Investors of record on Tuesday, September 23rd will be paid 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 dividend 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 tumble. Equities 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 Price Performance

Shares of NASDAQ:GLAD traded up $0.05 on Friday, hitting $23.62. The company's stock had a trading volume of 198,813 shares, compared to its average volume of 113,481. The company has a 50-day simple moving average of $26.71 and a 200 day simple moving average of $26.46. Gladstone Capital has a 1 year low of $21.96 and a 1 year high of $30.43. The company has a market capitalization of $527.43 million, a PE ratio of 6.97 and a beta of 1.02. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.08 and a quick ratio of 0.08.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last released its quarterly earnings results on Monday, August 4th. The investment management company reported $0.50 earnings per share for the quarter, meeting the consensus estimate of $0.50. Gladstone Capital had a return on equity of 9.43% and a net margin of 84.60%.The firm had revenue of $21.66 million for the quarter, compared to analysts' expectations of $21.93 million. Sell-side analysts forecast that Gladstone Capital will post 2.03 EPS for the current fiscal year.

Hedge Funds Weigh In On Gladstone Capital

A number of large investors have recently modified their holdings of the company. WFA of San Diego LLC purchased a new position in shares of Gladstone Capital during the 2nd quarter valued at about $42,000. Brevan Howard Capital Management LP grew its position in Gladstone Capital by 64.8% during the 2nd quarter. Brevan Howard Capital Management LP now owns 13,887 shares of the investment management company's stock worth $375,000 after acquiring an additional 5,458 shares during the last quarter. Ausdal Financial Partners Inc. grew its position in Gladstone Capital by 32.4% during the 2nd quarter. Ausdal Financial Partners Inc. now owns 32,134 shares of the investment management company's stock worth $867,000 after acquiring an additional 7,869 shares during the last quarter. Raymond James Financial Inc. grew its position in Gladstone Capital by 29.7% during the 2nd quarter. Raymond James Financial Inc. now owns 43,580 shares of the investment management company's stock worth $1,175,000 after acquiring an additional 9,985 shares during the last quarter. Finally, Qube Research & Technologies Ltd grew its position in Gladstone Capital by 16.2% during the 2nd quarter. Qube Research & Technologies Ltd now owns 19,184 shares of the investment management company's stock worth $517,000 after acquiring an additional 2,678 shares during the last quarter. 10.72% of the stock is owned by hedge funds and other institutional investors.

Gladstone Capital Company Profile

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.