Gladstone Capital Corporation (NASDAQ:GLAD) Given Average Rating of "Hold" by Analysts

Key Points

• Analysts rate Gladstone Capital “Hold” on average: Four of six analysts recommend holding the stock, while two recommend buying it. The average 12-month price target is $21.67.
• Shares were trading at $18.90, down 2.2%, with a market capitalization of approximately $427 million. The company recently exceeded quarterly earnings and revenue expectations, reporting EPS of $0.52 versus the $0.49 consensus estimate.
• Gladstone Capital declared a monthly dividend of $0.15 per share, representing an annualized yield of about 9.5%, though its payout ratio is high at 98.36%.

Shares of Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) have earned an average rating of "Hold" from the six brokerages that are currently covering the stock, MarketBeat reports. Four research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $21.6667.

A number of research firms recently issued reports on GLAD. Wall Street Zen raised Gladstone Capital from a "sell" rating to a "hold" rating in a research note on Saturday, April 11th. B. Riley Financial reaffirmed a "buy" rating on shares of Gladstone Capital in a research report on Friday, May 8th. Finally, Weiss Ratings raised shares of Gladstone Capital from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 2nd.

Gladstone Capital Trading Down 2.2%

Shares of GLAD opened at $18.90 on Thursday. The stock has a market cap of $426.95 million, a P/E ratio of 10.33 and a beta of 0.92. The company has a 50-day moving average of $19.28 and a two-hundred day moving average of $19.04. Gladstone Capital has a 12-month low of $16.54 and a 12-month high of $28.55.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The investment management company reported $0.52 EPS for the quarter, beating the consensus estimate of $0.49 by $0.03. Gladstone Capital had a net margin of 45.15% and a return on equity of 9.79%. The business had revenue of $25.99 million for the quarter, compared to analyst estimates of $25.19 million. As a group, analysts forecast that Gladstone Capital will post 2.01 EPS for the current fiscal year.

Gladstone Capital Announces Dividend

The firm also recently declared a monthly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be given a dividend of $0.15 per share. This represents a c) dividend on an annualized basis and a yield of 9.5%. The ex-dividend date of this dividend is Monday, September 21st. Gladstone Capital's payout ratio is 98.36%.

Institutional Investors Weigh In On Gladstone Capital

Several large investors have recently made changes to their positions in the business. Garner Asset Management Corp acquired a new position in shares of Gladstone Capital during the 4th quarter valued at $36,000. WFA of San Diego LLC purchased a new stake in Gladstone Capital during the 2nd quarter worth $42,000. JPMorgan Chase & Co. acquired a new stake in Gladstone Capital in the 2nd quarter valued at $46,000. Larson Financial Group LLC increased its holdings in Gladstone Capital by 380.0% in the 3rd quarter. Larson Financial Group LLC now owns 2,400 shares of the investment management company's stock valued at $52,000 after purchasing an additional 1,900 shares in the last quarter. Finally, Advisory Services Network LLC purchased a new position in Gladstone Capital in the third quarter valued at about $74,000. Institutional investors and hedge funds own 10.72% of the company's stock.

About Gladstone Capital

Gladstone Capital Corporation is a publicly traded business development company (BDC) that provides debt and equity financing solutions to U.S. lower middle-market companies. Operating under an external management agreement with Gladstone Management L.P., the firm offers senior secured loans, mezzanine debt and equity investments designed to support growth initiatives, acquisitions and recapitalizations. Through its focus on privately held businesses, Gladstone Capital seeks to construct a diversified portfolio across various industry sectors.

Since its formation in 2003, Gladstone Capital has developed a track record of working closely with management teams and business owners to meet their capital needs.

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