Gladstone Investment (NASDAQ:GAIN) Reaches New 1-Year High - Time to Buy?

Key Points

• Gladstone Investment (GAIN) hit a new 52-week high of $17.00 (last $16.99) on volume ~207,500 shares and is trading above its 50- and 200-day moving averages (~$14.61 and $14.15).
• MarketBeat's consensus rating for GAIN is Hold (one Buy, four Hold), with several recent upgrades from sell/strong-sell levels but no broad analyst conviction to buy.
• The company pays a monthly dividend of $0.08 (annualized yield ~5.6%), while fundamentals show a recent EPS miss ($0.21 vs. $0.24), a P/E of 5.47, and a market cap near $677 million.

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report)'s share price hit a new 52-week high on Tuesday . The company traded as high as $17.00 and last traded at $16.99, with a volume of 207500 shares changing hands. The stock had previously closed at $16.83.

Analysts Set New Price Targets

GAIN has been the subject of a number of research reports. Weiss Ratings reissued a "buy (b-)" rating on shares of Gladstone Investment in a report on Friday, March 27th. Wall Street Zen raised shares of Gladstone Investment from a "sell" rating to a "hold" rating in a report on Saturday, February 7th. Zacks Research raised 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. One research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, Gladstone Investment presently has a consensus rating of "Hold".

Gladstone Investment Stock Performance

The company has a market cap of $676.94 million, a price-to-earnings ratio of 5.47 and a beta of 0.81. The business's 50 day moving average price is $14.61 and its 200-day moving average price is $14.15.

Gladstone Investment (NASDAQ:GAIN - Get Free Report) last announced 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). The business had revenue of $25.06 million during the quarter, compared to analyst estimates of $25.83 million. Gladstone Investment had a net margin of 118.55% and a return on equity of 6.77%. On average, equities research analysts expect that Gladstone Investment Corporation will post 0.9 earnings per share for the current fiscal year.

Gladstone Investment Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 23rd will be given a dividend of $0.08 per share. The ex-dividend date is Tuesday, June 23rd. This represents a c) dividend on an annualized basis and a dividend yield of 5.6%. Gladstone Investment's dividend payout ratio (DPR) is 30.87%.

Institutional Investors Weigh In On Gladstone Investment

Hedge funds have recently made changes to their positions in the company. Kestra Advisory Services LLC acquired a new stake in shares of Gladstone Investment during the 4th quarter worth about $26,000. International Assets Investment Management LLC acquired a new stake in shares of Gladstone Investment during the 4th quarter worth about $31,000. JPMorgan Chase & Co. increased its position in shares of Gladstone Investment by 960.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 5,304 shares of the investment management company's stock worth $76,000 after purchasing an additional 4,804 shares in the last quarter. Quantbot Technologies LP acquired a new stake in shares of Gladstone Investment during the 2nd quarter worth about $105,000. Finally, Bank of America Corp DE increased its position in shares of Gladstone Investment by 272.1% during the 3rd quarter. Bank of America Corp DE now owns 8,946 shares of the investment management company's stock worth $124,000 after purchasing an additional 6,542 shares in the last quarter. Institutional investors and hedge funds own 11.85% of the company's stock.

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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