Gladstone Capital (NASDAQ:GLAD) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Gladstone Capital (NASDAQ:GLAD) from a "hold" to a "sell," though the consensus rating remains "Hold" with a $21.67 consensus target (two Buy, four Hold).
• Current price and fundamentals: GLAD opened at $16.55 with a $373.9M market cap, P/E of 10.41 and a 52‑week range of $16.54–$29.50; the company reported Q EPS of $0.50 (beating by $0.02) on $24.51M revenue, slightly below expectations.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Several other brokerages have also recently weighed in on GLAD. Weiss Ratings restated a "hold (c)" rating on shares of Gladstone Capital in a research note on Monday, December 29th. Zacks Research upgraded shares of Gladstone Capital from a "strong sell" rating to a "hold" rating in a report on Monday, December 8th. Finally, Jefferies Financial Group set a $21.00 price target on shares of Gladstone Capital and gave the company a "hold" rating in a research report on Friday, February 6th. Two equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $21.67.

Gladstone Capital Stock Performance

Shares of Gladstone Capital stock opened at $16.55 on Friday. The company has a market cap of $373.86 million, a PE ratio of 10.41 and a beta of 0.95. Gladstone Capital has a 52 week low of $16.54 and a 52 week high of $29.50. The business has a 50 day moving average price of $18.82 and a 200-day moving average price of $20.10. The company has a quick ratio of 0.05, a current ratio of 0.05 and a debt-to-equity ratio of 0.45.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last announced its earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.02. Gladstone Capital had a return on equity of 9.56% and a net margin of 39.42%.The company had revenue of $24.51 million for the quarter, compared to analysts' expectations of $24.70 million. Equities analysts anticipate that Gladstone Capital will post 2.03 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Gladstone Capital

Institutional investors have recently bought and sold shares of the company. Virtu Financial LLC bought a new position in Gladstone Capital during the fourth quarter valued at $213,000. Virtus Investment Advisers LLC raised its stake in shares of Gladstone Capital by 60.5% in the fourth quarter. Virtus Investment Advisers LLC now owns 28,401 shares of the investment management company's stock valued at $587,000 after buying an additional 10,703 shares during the period. Tudor Investment Corp ET AL purchased a new position in shares of Gladstone Capital during the 4th quarter valued at $423,000. Quadrature Capital Ltd lifted its position in shares of Gladstone Capital by 45.9% during the 4th quarter. Quadrature Capital Ltd now owns 36,791 shares of the investment management company's stock valued at $760,000 after buying an additional 11,580 shares during the last quarter. Finally, Trexquant Investment LP grew its stake in shares of Gladstone Capital by 107.7% during the 4th quarter. Trexquant Investment LP now owns 59,185 shares of the investment management company's stock worth $1,223,000 after acquiring an additional 30,695 shares during the period. Hedge funds and other institutional investors own 10.72% of the company's stock.

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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