Gladstone Capital Corporation (NASDAQ:GLAD) Receives Average Rating of "Hold" from Analysts

Key Points

• Gladstone Capital has an average analyst rating of Hold from six brokerages (four hold, two buy) with an average 1-year target price of $21.67.
• The firm announced a monthly dividend of $0.15 (ex-dividend June 23), representing an annualized yield of 9.4% and a payout ratio of about 113%.
• Operational snapshot: quarterly EPS of $0.50 beat estimates by $0.02, the stock has a $432M market cap and a P/E of 12.04, and institutional ownership is roughly 10.7% with recent stake increases from firms like UBS and Two Sigma.

Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) has earned an average rating of "Hold" from the six brokerages that are currently covering the company, 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 1 year target price among brokerages that have covered the stock in the last year is $21.6667.

Several research firms have weighed in on GLAD. Wall Street Zen upgraded Gladstone Capital from a "sell" rating to a "hold" rating in a research note on Saturday, April 11th. Jefferies Financial Group set a $21.00 target price on Gladstone Capital and gave the stock a "hold" rating in a research note on Friday, February 6th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Gladstone Capital in a research note on Monday, December 29th.

Institutional Investors Weigh In On Gladstone Capital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. UBS Group AG lifted its stake in Gladstone Capital by 18.0% during the fourth quarter. UBS Group AG now owns 271,702 shares of the investment management company's stock worth $5,613,000 after purchasing an additional 41,484 shares during the last quarter. D.A. Davidson & CO. lifted its stake in Gladstone Capital by 2.4% during the third quarter. D.A. Davidson & CO. now owns 115,951 shares of the investment management company's stock worth $2,536,000 after purchasing an additional 2,711 shares during the last quarter. Marshall Wace LLP lifted its stake in Gladstone Capital by 1.0% during the fourth quarter. Marshall Wace LLP now owns 110,304 shares of the investment management company's stock worth $2,279,000 after purchasing an additional 1,041 shares during the last quarter. Two Sigma Investments LP lifted its stake in Gladstone Capital by 39.1% during the third quarter. Two Sigma Investments LP now owns 89,519 shares of the investment management company's stock worth $1,958,000 after purchasing an additional 25,181 shares during the last quarter. Finally, Advisors Asset Management Inc. lifted its stake in Gladstone Capital by 2.7% during the fourth quarter. Advisors Asset Management Inc. now owns 64,909 shares of the investment management company's stock worth $1,341,000 after purchasing an additional 1,727 shares during the last quarter. 10.72% of the stock is currently owned by institutional investors.

Gladstone Capital Trading Down 0.4%

Shares of NASDAQ:GLAD opened at $19.14 on Tuesday. The company has a market capitalization of $432.37 million, a P/E ratio of 12.04 and a beta of 0.95. Gladstone Capital has a 1 year low of $16.54 and a 1 year high of $29.50. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.05 and a quick ratio of 0.05. The business's 50 day simple moving average is $18.13 and its 200 day simple moving average is $19.54.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last issued its quarterly earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.48 by $0.02. The business had revenue of $24.51 million for the quarter, compared to the consensus estimate of $24.70 million. Gladstone Capital had a return on equity of 9.56% and a net margin of 39.42%. On average, research analysts anticipate that Gladstone Capital will post 1.95 EPS for the current fiscal year.

Gladstone Capital Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 23rd will be paid a dividend of $0.15 per share. The ex-dividend date is Tuesday, June 23rd. This represents a c) annualized dividend and a yield of 9.4%. Gladstone Capital's dividend payout ratio is presently 113.21%.

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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