Gladstone Investment (NASDAQ:GAIN) Sets New 52-Week High - Should You Buy?

Key Points

• Gladstone Investment (GAIN) reached a new 52-week high of $16.06 (last traded $16.025) and is trading above its 50‑day ($14.23) and 200‑day ($14.00) moving averages.
• The firm announced a monthly dividend of $0.08 (annualized yield ~6.0%), with an ex‑dividend date of June 23 and payment on June 30; the dividend payout ratio is about 30.87%.
• Analyst sentiment is a consensus "Hold" (one Buy, four Holds) after a recent quarter that missed EPS ($0.21 vs. $0.24); the stock trades at a P/E of 5.15 and has a market cap of roughly $638 million.

Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report) reached a new 52-week high during trading on Tuesday . The stock traded as high as $16.06 and last traded at $16.0250, with a volume of 16550 shares traded. The stock had previously closed at $15.89.

Wall Street Analyst Weigh In

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

Gladstone Investment Stock Up 0.8%

The firm has a 50 day moving average price of $14.23 and a 200 day moving average price of $14.00. The stock has a market cap of $637.92 million, a P/E ratio of 5.15 and a beta of 0.78.

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

Gladstone Investment Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 23rd will be paid a dividend of $0.08 per share. This represents a c) annualized dividend and a yield of 6.0%. The ex-dividend date of this dividend is Tuesday, June 23rd. Gladstone Investment's dividend payout ratio (DPR) is 30.87%.

Institutional Trading of Gladstone Investment

Several institutional investors and hedge funds have recently added to or reduced their stakes in GAIN. UBS Group AG raised its stake in Gladstone Investment by 89.6% during the 3rd quarter. UBS Group AG now owns 484,848 shares of the investment management company's stock valued at $6,701,000 after purchasing an additional 229,192 shares during the period. PFG Advisors raised its stake in Gladstone Investment by 206.0% during the 4th quarter. PFG Advisors now owns 305,248 shares of the investment management company's stock valued at $4,264,000 after purchasing an additional 205,504 shares during the period. Osaic Holdings Inc. raised its stake in Gladstone Investment by 395.5% during the 4th quarter. Osaic Holdings Inc. now owns 88,410 shares of the investment management company's stock valued at $1,235,000 after purchasing an additional 70,566 shares during the period. Melia Wealth LLC raised its stake in Gladstone Investment by 5.7% during the 3rd quarter. Melia Wealth LLC now owns 1,197,594 shares of the investment management company's stock valued at $16,551,000 after purchasing an additional 64,564 shares during the period. Finally, Invesco Ltd. bought a new stake in Gladstone Investment during the 2nd quarter valued at approximately $735,000. 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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