Gladstone Capital (NASDAQ:GLAD) Releases Earnings Results, Beats Expectations By $0.08 EPS

Key Points

• Gladstone Capital exceeded earnings expectations, reporting quarterly EPS of $0.56 versus the $0.48 consensus estimate. Revenue was $24.50 million, slightly below the expected $24.90 million.
• The company declared a $0.15 monthly dividend payable September 30 to shareholders of record September 21, implying an annualized yield of approximately 9.3%; its payout ratio is 98.36%.
• GLAD shares rose to $19.35 following the results. Analysts maintain a consensus “Hold” rating, with an average price target of $21.67.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) posted its quarterly earnings results on Tuesday. The investment management company reported $0.56 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.08, FiscalAI reports. The firm had revenue of $24.50 million during the quarter, compared to the consensus estimate of $24.90 million. Gladstone Capital had a net margin of 45.15% and a return on equity of 9.79%.

Gladstone Capital Stock Performance

Shares of NASDAQ GLAD traded up $0.33 during trading on Tuesday, reaching $19.35. The stock had a trading volume of 175,100 shares, compared to its average volume of 195,965. The company has a market cap of $437.17 million, a P/E ratio of 10.57 and a beta of 0.92. Gladstone Capital has a fifty-two week low of $16.54 and a fifty-two week high of $27.59. The business's 50-day moving average price is $19.27 and its 200-day moving average price is $18.99.

Gladstone Capital Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be paid a $0.15 dividend. The ex-dividend date of this dividend is Monday, September 21st. This represents a c) dividend on an annualized basis and a dividend yield of 9.3%. Gladstone Capital's payout ratio is presently 98.36%.

Analyst Ratings Changes

GLAD has been the subject of a number of research analyst reports. Weiss Ratings upgraded Gladstone Capital from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, July 2nd. Wall Street Zen upgraded shares of Gladstone Capital from a "sell" rating to a "hold" rating in a research report on Saturday, April 11th. Finally, B. Riley Financial reiterated a "buy" rating on shares of Gladstone Capital in a research report on Friday, May 8th. Two equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Gladstone Capital presently has an average rating of "Hold" and an average target price of $21.67.

Institutional Investors Weigh In On Gladstone Capital

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 second quarter worth approximately $42,000. JPMorgan Chase & Co. acquired a new stake in Gladstone Capital during the 2nd quarter worth $46,000. Larson Financial Group LLC boosted its stake in Gladstone Capital by 380.0% during the 3rd quarter. Larson Financial Group LLC now owns 2,400 shares of the investment management company's stock worth $52,000 after purchasing an additional 1,900 shares during the period. Advisory Services Network LLC purchased a new position in Gladstone Capital during the 3rd quarter worth $74,000. Finally, Quantbot Technologies LP increased its stake in Gladstone Capital by 52.7% in the second quarter. Quantbot Technologies LP now owns 4,272 shares of the investment management company's stock valued at $115,000 after purchasing an additional 1,474 shares during the period. 10.72% of the stock is owned by hedge funds and other institutional investors.

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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