Gladstone Investment (NASDAQ:GAIN) Sets New 1-Year High Following Dividend Announcement

Key Points

• Gladstone Investment's shares hit a new 52-week high intraday ($15.34) after the company announced a dividend of $0.08 per share payable June 30 with record/ex-dividend date June 23, implying an annualized yield of about 6.3% and a payout ratio of 30.87%.
• The stock carries a consensus analyst rating of Hold (one Buy, four Hold), trades at a PE of 4.92 with a market cap near $609 million, and recently missed quarterly expectations (EPS $0.21 vs. $0.24; revenue $25.06M vs. $25.83M).
• Positive media coverage and inclusion on high-yield dividend lists, along with modest institutional buying, could attract income-focused investors and help support the share price.

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Wednesday after the company announced a dividend. The stock traded as high as $15.34 and last traded at $15.31, with a volume of 206753 shares trading hands. The stock had previously closed at $15.14.The newly announced dividend which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 23rd will be given a dividend of $0.08 per share. The ex-dividend date of this dividend is Tuesday, June 23rd. This represents a c) dividend on an annualized basis and a yield of 6.3%. Gladstone Investment's dividend payout ratio (DPR) is 30.87%.

Analyst Ratings Changes

A number of research analysts have commented on the stock. B. Riley Financial reissued a "neutral" rating on shares of Gladstone Investment in a research report on Monday, February 9th. Wall Street Zen raised shares of Gladstone Investment from a "sell" rating to a "hold" rating in a research report on Saturday, February 7th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Gladstone Investment in a research report on Friday, March 27th. Finally, Zacks Research raised shares of Gladstone Investment from a "strong sell" rating to a "hold" rating in a research report on Friday, March 6th. One research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold".

Gladstone Investment Trading Up 1.1%

The business's 50-day moving average price is $14.09 and its 200-day moving average price is $13.95. The stock has a market cap of $609.25 million, a PE ratio of 4.92 and a beta of 0.78.

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). The firm had revenue of $25.06 million during the quarter, compared to analysts' expectations of $25.83 million. Gladstone Investment had a return on equity of 6.77% and a net margin of 118.55%. As a group, analysts predict that Gladstone Investment Corporation will post 0.96 earnings per share for the current year.

Key Gladstone Investment News

Here are the key news stories impacting Gladstone Investment this week:

• Positive Sentiment: Board declared monthly cash distributions of $0.08 per share for April, May and June (annualized yield ~6.3%); ex-dividend dates and payment dates were provided, giving income-focused investors clarity and predictability. Press Release: Monthly Cash Distributions
• Positive Sentiment: Coverage on Seeking Alpha framed the company as delivering “monthly pay with strong results,” which can attract yield-seeking retail and income investors and support the share price. Gladstone Investment: Monthly Pay With Strong Results
• Neutral Sentiment: Company announced timing for its fourth fiscal quarter earnings release and conference call; this provides a catalyst (earnings day) that could move the stock either way depending on portfolio performance and fee/income details. Earnings Release & Call Dates
• Neutral Sentiment: Inclusion in a 247wallst article about high-yield dividend stocks may raise visibility among income investors but is unlikely by itself to produce sustained upside. Article: High-Yield Dividend Stocks

Institutional Trading of Gladstone Investment

Several large investors have recently bought and sold shares of the stock. Raymond James Financial Inc. grew its position 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 worth $583,000 after purchasing an additional 814 shares during the last quarter. NewEdge Advisors LLC lifted 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 acquiring an additional 1,084 shares during the period. Wells Fargo & Company MN lifted its stake 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 valued at $206,000 after acquiring an additional 1,500 shares during the period. Kestra Advisory Services LLC acquired a new stake in Gladstone Investment during the 4th quarter valued at approximately $26,000. Finally, JPMorgan Chase & Co. lifted its stake in Gladstone Investment by 36.7% during the 3rd quarter. JPMorgan Chase & Co. now owns 7,249 shares of the investment management company's stock valued at $100,000 after acquiring an additional 1,945 shares during the period. Hedge funds and other institutional investors 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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