Gladstone Investment Corporation (NASDAQ:GAIN) Declares Monthly Dividend of $0.08

Key Points

• Gladstone Investment Corporation declared a monthly dividend of $0.08 per share, payable on July 31 to shareholders of record on July 24. The dividend’s annualized yield is listed at 5.8%.
• The company’s dividend looks relatively stretched: its payout ratio is 91.4%, and analysts expect earnings of only $0.92 per share next year versus an annual dividend of $0.96, implying a potential coverage shortfall.
• On the operating side, Gladstone Investment recently missed earnings and revenue estimates for the quarter, even as the stock traded at $16.52 with a market cap of about $657.8 million.

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report) declared a monthly dividend on Tuesday, July 14th. Shareholders of record on Friday, July 24th will be paid a dividend of 0.08 per share by the investment management company on Friday, July 31st. This represents a c) annualized dividend and a yield of 5.8%. The ex-dividend date of this dividend is Friday, July 24th.

Gladstone Investment has raised its dividend by an average of 0.1%per year over the last three years. Gladstone Investment has a dividend payout ratio of 91.4% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Equities analysts expect Gladstone Investment to earn $0.92 per share next year, which means the company may not be able to cover its $0.96 annual dividend with an expected future payout ratio of 104.3%.

Gladstone Investment Stock Performance

GAIN stock opened at $16.52 on Wednesday. Gladstone Investment has a 52-week low of $13.11 and a 52-week high of $17.14. The company has a market capitalization of $657.83 million, a P/E ratio of 3.52 and a beta of 0.78. The company has a fifty day moving average price of $15.76 and a 200-day moving average price of $14.83.

Gladstone Investment (NASDAQ:GAIN - Get Free Report) last announced its earnings results on Tuesday, May 12th. The investment management company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.02). The company had revenue of $25.19 million for the quarter, compared to the consensus estimate of $25.80 million. Gladstone Investment had a return on equity of 6.05% and a net margin of 186.47%. As a group, sell-side analysts forecast that Gladstone Investment will post 0.91 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Cetera Investment Advisers raised its holdings in shares of Gladstone Investment by 2.3% in the 1st quarter. Cetera Investment Advisers now owns 31,653 shares of the investment management company's stock worth $449,000 after acquiring an additional 717 shares during the last quarter. Raymond James Financial Inc. boosted its stake in Gladstone Investment by 2.0% during the 2nd quarter. Raymond James Financial Inc. now owns 40,857 shares of the investment management company's stock valued at $583,000 after purchasing an additional 814 shares during the last quarter. NewEdge Advisors LLC boosted its stake in Gladstone Investment by 5.6% during the 4th quarter. NewEdge Advisors LLC now owns 20,460 shares of the investment management company's stock valued at $286,000 after purchasing an additional 1,084 shares during the last quarter. Wells Fargo & Company MN increased its holdings in Gladstone Investment by 11.3% during the 4th quarter. Wells Fargo & Company MN now owns 14,777 shares of the investment management company's stock worth $206,000 after purchasing an additional 1,500 shares in the last quarter. Finally, Kestra Advisory Services LLC bought a new stake in Gladstone Investment during the 4th quarter worth approximately $26,000. 11.85% of the stock is owned by institutional investors.

About Gladstone Investment

Gladstone Investment NASDAQ: GAIN is a publicly traded business development company (BDC) that focuses on providing debt and equity financing to U.S. middle-market companies. As an externally managed closed-end fund, Gladstone Investment seeks to generate current income and capital appreciation for its shareholders by originating senior secured debt, subordinated debt and equity investments. The firm typically targets established businesses with revenues between $10 million and $150 million, across a range of industry sectors including business services, health care, industrials and specialty manufacturing.

The company's investment strategy centers on deploying capital through first-lien and second-lien term loans, mezzanine debt and equity co-investments, often including warrants or other equity kickers.

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