Gladstone Investment Corporation (NASDAQ:GAIN) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts give Gladstone Investment (GAIN) an average rating of Hold from five brokerages (four holds, one buy), with recent upgrades from Wall Street Zen and Zacks and a buy reissue from Weiss Ratings.
• The company missed quarterly expectations, reporting EPS of $0.21 vs. $0.24 consensus and revenue of $25.06M vs. $25.83M, while the stock trades near $16.82 with a market cap of about $670M and a P/E of 5.41.
• Gladstone declared a monthly dividend of $0.08 payable June 30 (ex-dividend June 23), representing an annualized yield of 5.7% and a payout ratio around 30.9%.

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report) has earned an average rating of "Hold" from the five brokerages that are covering the company, Marketbeat Ratings reports. Four investment analysts have rated the stock with a hold recommendation and one has given a buy recommendation to the company.

Several brokerages have commented on GAIN. Wall Street Zen upgraded shares of Gladstone Investment from a "sell" rating to a "hold" rating in a report on Saturday, February 7th. Weiss Ratings reissued a "buy (b-)" rating on shares of Gladstone Investment in a research report on Friday, March 27th. Zacks Research upgraded shares of Gladstone Investment from a "strong sell" rating to a "hold" rating in a report on Friday, March 6th. Finally, B. Riley Financial reaffirmed a "neutral" rating on shares of Gladstone Investment in a research report on Monday, February 9th.

Hedge Funds Weigh In On Gladstone Investment

Several large investors have recently made changes to their positions in GAIN. Melia Wealth LLC boosted its position in shares of Gladstone Investment by 5.7% in the 3rd quarter. Melia Wealth LLC now owns 1,197,594 shares of the investment management company's stock worth $16,551,000 after purchasing an additional 64,564 shares in the last quarter. Van ECK Associates Corp increased its position in Gladstone Investment by 2.2% during the 3rd quarter. Van ECK Associates Corp now owns 854,730 shares of the investment management company's stock valued at $11,812,000 after buying an additional 18,089 shares in the last quarter. UBS Group AG raised its stake in Gladstone Investment by 47.1% during the fourth quarter. UBS Group AG now owns 713,016 shares of the investment management company's stock valued at $9,961,000 after buying an additional 228,168 shares during the last quarter. PFG Advisors boosted its holdings in Gladstone Investment by 206.0% in the fourth quarter. PFG Advisors now owns 305,248 shares of the investment management company's stock worth $4,264,000 after acquiring an additional 205,504 shares in the last quarter. Finally, Legal & General Group Plc boosted its holdings in Gladstone Investment by 23.0% in the fourth quarter. Legal & General Group Plc now owns 273,752 shares of the investment management company's stock worth $3,833,000 after acquiring an additional 51,205 shares in the last quarter. 11.85% of the stock is currently owned by hedge funds and other institutional investors.

Gladstone Investment Stock Up 1.3%

Shares of GAIN stock opened at $16.82 on Friday. The firm has a market capitalization of $669.77 million, a price-to-earnings ratio of 5.41 and a beta of 0.81. The stock has a fifty day moving average of $14.61 and a 200 day moving average of $14.15. Gladstone Investment has a 52 week low of $13.11 and a 52 week high of $16.94.

Gladstone Investment (NASDAQ:GAIN - Get Free Report) last issued its quarterly earnings data on Tuesday, February 3rd. The investment management company reported $0.21 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.24 by ($0.03). Gladstone Investment had a net margin of 118.55% and a return on equity of 6.77%. The company had revenue of $25.06 million for the quarter, compared to analysts' expectations of $25.83 million. Equities research analysts anticipate that Gladstone Investment will post 0.9 earnings per share for the current year.

Gladstone Investment Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 23rd will be issued a $0.08 dividend. This represents a c) dividend on an annualized basis and a yield of 5.7%. The ex-dividend date is Tuesday, June 23rd. Gladstone Investment's dividend payout ratio is 30.87%.

Gladstone Investment Company Profile

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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