Gladstone Capital (NASDAQ:GLAD) Stock Price Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• Gladstone Capital Corporation (NASDAQ:GLAD) recently crossed above its 200-day moving average of $27.18, trading as high as $27.46 before settling at $26.91.
• The company announced a dividend of $0.165 per share, resulting in a significant yield of 685.0%, with a payout ratio of 50.25%.
• Analysts expect Gladstone Capital to post 2.03 earnings per share for the current year, following a recent quarterly earnings report matching consensus estimates.

Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) shares crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $27.18 and traded as high as $27.46. Gladstone Capital shares last traded at $26.91, with a volume of 75,993 shares.

Wall Street Analyst Weigh In

A number of analysts have weighed in on GLAD shares. B. Riley upgraded Gladstone Capital to a "hold" rating in a research note on Monday, June 16th. Oppenheimer upped their target price on shares of Gladstone Capital from $24.00 to $26.00 and gave the company a "market perform" rating in a report on Wednesday. Finally, LADENBURG THALM/SH SH upgraded shares of Gladstone Capital to a "hold" rating in a research report on Wednesday.

Gladstone Capital Stock Up 0.5%

The firm has a market cap of $608.49 million, a PE ratio of 8.04 and a beta of 1.01. The company has a quick ratio of 0.04, a current ratio of 0.08 and a debt-to-equity ratio of 0.06. The firm's 50 day moving average is $27.44 and its 200-day moving average is $27.16.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last posted its quarterly earnings data on Monday, August 4th. The investment management company reported $0.50 EPS for the quarter, meeting analysts' consensus estimates of $0.50. Gladstone Capital had a net margin of 84.60% and a return on equity of 9.43%. The company had revenue of $21.66 million during the quarter, compared to the consensus estimate of $21.93 million. As a group, equities research analysts expect that Gladstone Capital Corporation will post 2.03 earnings per share for the current fiscal year.

Gladstone Capital Announces Dividend

The firm also recently declared a dividend, which was paid on Thursday, July 31st. Shareholders of record on Tuesday, July 22nd were given a dividend of $0.165 per share. This represents a yield of 685.0%. The ex-dividend date of this dividend was Monday, July 21st. Gladstone Capital's payout ratio is 58.41%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. CWM LLC purchased a new stake in Gladstone Capital during the 2nd quarter worth $32,000. First Horizon Advisors Inc. acquired a new stake in shares of Gladstone Capital during the second quarter valued at about $44,000. Allworth Financial LP purchased a new stake in shares of Gladstone Capital during the second quarter worth about $46,000. Quantbot Technologies LP acquired a new position in shares of Gladstone Capital in the first quarter worth about $77,000. Finally, Farther Finance Advisors LLC boosted its holdings in Gladstone Capital by 78.2% in the first quarter. Farther Finance Advisors LLC now owns 3,409 shares of the investment management company's stock valued at $94,000 after purchasing an additional 1,496 shares during the last quarter. Institutional investors and hedge funds own 10.72% of the company's stock.

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.