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

Key Points

• Analysts give Gladstone Capital a consensus “Hold” rating: Three of five covering brokers recommend holding the stock, while two recommend buying it. The average 12-month price target is $21.67, above the reported $19.67 share price.
• Gladstone Capital exceeded quarterly earnings expectations, reporting $0.49 EPS versus the $0.48 consensus, although revenue of $24.5 million fell short of the $24.9 million estimate.
• The company declared a monthly $0.15-per-share dividend, equivalent to a stated 9.2% annualized yield, with a payout ratio of 87.38%. Institutional investors own 10.72% of the stock.

Shares of Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) have earned an average recommendation of "Hold" from the five brokerages that are currently covering the company, Marketbeat.com reports. Three investment analysts have rated the stock with a hold recommendation and two have assigned a buy recommendation to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $21.6667.

GLAD has been the subject of a number of recent analyst reports. 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. B. Riley Financial reissued a "buy" rating on shares of Gladstone Capital in a research report on Friday, May 8th.

Institutional Investors Weigh In On Gladstone Capital

A number of hedge funds have recently made changes to their positions in GLAD. WFA of San Diego LLC bought a new position in Gladstone Capital during the second quarter valued at about $42,000. JPMorgan Chase & Co. purchased a new position in Gladstone Capital in the second quarter valued at about $46,000. Garner Asset Management Corp purchased a new position in Gladstone Capital in the fourth quarter valued at about $36,000. Larson Financial Group LLC boosted its stake in Gladstone Capital by 380.0% in the third quarter. Larson Financial Group LLC now owns 2,400 shares of the investment management company's stock valued at $52,000 after acquiring an additional 1,900 shares during the last quarter. Finally, Advisory Services Network LLC bought a new position in shares of Gladstone Capital during the 3rd quarter valued at approximately $74,000. 10.72% of the stock is currently owned by institutional investors.

Gladstone Capital Price Performance

GLAD opened at $19.67 on Monday. Gladstone Capital has a 1 year low of $16.54 and a 1 year high of $26.84. The company has a market capitalization of $444.35 million, a price-to-earnings ratio of 9.55 and a beta of 0.92. The firm's fifty day moving average price is $19.35 and its two-hundred day moving average price is $18.87.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last announced its earnings results on Tuesday, August 4th. The investment management company reported $0.49 EPS for the quarter, beating the consensus estimate of $0.48 by $0.01. Gladstone Capital had a net margin of 50.48% and a return on equity of 9.67%. The company had revenue of $24.50 million during the quarter, compared to the consensus estimate of $24.90 million. As a group, equities analysts anticipate that Gladstone Capital will post 1.99 EPS for the current year.

Gladstone Capital Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Wednesday, September 30th. Investors 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 dividend yield of 9.2%. The ex-dividend date of this dividend is Monday, September 21st. Gladstone Capital's dividend payout ratio (DPR) is presently 87.38%.

Gladstone Capital Company Profile

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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