Gladstone Capital Corporation (NASDAQ:GLAD) Sees Significant Increase in Short Interest

Key Points

• Gladstone Capital Corporation (NASDAQ:GLAD) experienced a 93.1% increase in short interest in September, with total short interest reaching 574,800 shares as of September 15th.
• The company declared a special dividend of $0.10 per share, which was paid on September 29th, with a payout ratio currently at 58.41%.
• Gladstone Capital's recent quarterly earnings met analyst expectations, reporting $0.50 earnings per share and a return on equity of 9.43% despite slight revenue misses.

Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) was the recipient of a significant increase in short interest in the month of September. As of September 15th, there was short interest totaling 574,800 shares, an increase of 93.1% from the August 31st total of 297,700 shares. Currently, 2.7% of the company's shares are sold short. Based on an average daily volume of 130,100 shares, the days-to-cover ratio is presently 4.4 days. Based on an average daily volume of 130,100 shares, the days-to-cover ratio is presently 4.4 days. Currently, 2.7% of the company's shares are sold short.

Gladstone Capital Stock Performance

Shares of GLAD stock traded down $0.42 during trading hours on Friday, reaching $21.36. 227,164 shares of the company traded hands, compared to its average volume of 264,186. Gladstone Capital has a 12-month low of $21.26 and a 12-month high of $30.43. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.08 and a quick ratio of 0.08. The company has a market cap of $476.97 million, a P/E ratio of 6.30 and a beta of 0.99. The firm has a 50-day moving average price of $25.29 and a 200 day moving average price of $26.07.

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 for the quarter, meeting analysts' consensus estimates 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. As a group, sell-side analysts predict that Gladstone Capital will post 2.03 earnings per share for the current fiscal year.

Gladstone Capital Announces Dividend

The firm also recently declared a special dividend, which was paid on Monday, September 29th. Investors of record on Tuesday, September 23rd were issued a $0.10 dividend. The ex-dividend date of this dividend was Tuesday, September 23rd. Gladstone Capital's payout ratio is currently 58.41%.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on GLAD. Weiss Ratings reissued a "buy (b)" rating on shares of Gladstone Capital in a research note on Saturday, September 27th. B. Riley upgraded Gladstone Capital to a "hold" rating in a report on Monday, June 16th. LADENBURG THALM/SH SH upgraded Gladstone Capital to a "hold" rating in a report on Wednesday, August 6th. Finally, Oppenheimer upped their target price on Gladstone Capital from $24.00 to $26.00 and gave the company a "market perform" rating in a report on Wednesday, August 6th. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Gladstone Capital currently has an average rating of "Hold" and a consensus price target of $24.50.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. CWM LLC purchased a new position in Gladstone Capital in the 2nd quarter worth approximately $32,000. Steward Partners Investment Advisory LLC bought a new stake in Gladstone Capital in the 2nd quarter worth approximately $37,000. WFA of San Diego LLC bought a new stake in Gladstone Capital in the 2nd quarter worth approximately $42,000. First Horizon Advisors Inc. bought a new stake in Gladstone Capital in the 2nd quarter worth approximately $44,000. Finally, Allworth Financial LP bought a new stake in Gladstone Capital in the 2nd quarter worth approximately $46,000. 10.72% of the stock is owned by hedge funds and other institutional investors.

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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