Golub Capital BDC, Inc. (NASDAQ:GBDC) Receives Average Recommendation of "Buy" from Analysts

Key Points

• Analyst consensus: Six analysts average a "Buy" rating (4 Buy, 1 Hold, 1 Strong Buy) with a mean 1‑year price target of $14.50, while recent notes include RBC initiating coverage at $15 and mixed downgrades from Wall Street Zen and Wells Fargo.
• Dividend cut and yield risk: The firm declared a quarterly dividend of $0.33 (annualized $1.32) for a 9.9% yield, but its dividend payout ratio is about 105.6%, suggesting the payout may be unsustainable.
• Results and valuation: Quarterly EPS matched estimates at $0.38 but revenue missed sharply ($110.2M vs. $208.9M consensus), and the stock trades near $13.29 with a PE of about 10.6 and a market cap of roughly $3.5B.

Golub Capital BDC, Inc. (NASDAQ:GBDC - Get Free Report) has received an average rating of "Buy" from the six ratings firms that are currently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a hold recommendation, four have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $14.50.

Several research firms recently commented on GBDC. Capital One Financial set a $15.00 target price on shares of Golub Capital BDC in a research report on Thursday, January 15th. Wall Street Zen downgraded shares of Golub Capital BDC from a "hold" rating to a "sell" rating in a research report on Sunday, April 19th. Wells Fargo & Company lowered their price target on shares of Golub Capital BDC from $14.00 to $13.00 and set an "overweight" rating for the company in a report on Friday, February 6th. Weiss Ratings restated a "hold (c)" rating on shares of Golub Capital BDC in a report on Friday, March 27th. Finally, Royal Bank Of Canada initiated coverage on shares of Golub Capital BDC in a report on Friday, April 17th. They set an "outperform" rating and a $15.00 price target for the company.

Golub Capital BDC Price Performance

NASDAQ:GBDC opened at $13.29 on Monday. The firm's 50 day simple moving average is $12.57 and its 200 day simple moving average is $13.30. The company has a debt-to-equity ratio of 1.25, a current ratio of 2.24 and a quick ratio of 2.24. Golub Capital BDC has a one year low of $11.77 and a one year high of $15.63. The company has a market cap of $3.50 billion, a PE ratio of 10.63 and a beta of 0.40.

Golub Capital BDC (NASDAQ:GBDC - Get Free Report) last posted its earnings results on Wednesday, February 4th. The investment management company reported $0.38 EPS for the quarter, hitting the consensus estimate of $0.38. Golub Capital BDC had a net margin of 38.57% and a return on equity of 10.37%. The business had revenue of $110.18 million for the quarter, compared to the consensus estimate of $208.89 million. During the same period last year, the company earned $0.42 EPS. On average, research analysts anticipate that Golub Capital BDC will post 1.44 earnings per share for the current year.

Golub Capital BDC Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 30th. Shareholders of record on Friday, March 13th were issued a dividend of $0.33 per share. The ex-dividend date was Friday, March 13th. This represents a $1.32 annualized dividend and a yield of 9.9%. Golub Capital BDC's dividend payout ratio (DPR) is presently 105.60%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in GBDC. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA bought a new position in Golub Capital BDC during the 3rd quarter worth approximately $33,000. CWM LLC raised its holdings in Golub Capital BDC by 13,588.0% during the 3rd quarter. CWM LLC now owns 3,422 shares of the investment management company's stock worth $47,000 after purchasing an additional 3,397 shares during the last quarter. Main Street Group LTD bought a new position in Golub Capital BDC during the 3rd quarter worth approximately $51,000. Advisory Services Network LLC bought a new position in Golub Capital BDC during the 3rd quarter worth approximately $77,000. Finally, Farther Finance Advisors LLC bought a new position in Golub Capital BDC during the 3rd quarter worth approximately $78,000. Institutional investors own 42.38% of the company's stock.

About Golub Capital BDC

Golub Capital BDC NASDAQ: GBDC is a publicly traded business development company specializing in providing debt and equity financing solutions to middle-market companies in the United States. Externally managed by Golub Capital LLC, the firm focuses on building a diversified portfolio of senior secured loans, unitranche facilities and second-lien debt instruments designed to support growth, acquisitions and recapitalizations. As a closed-end investment vehicle, GBDC offers investors direct exposure to private credit strategies within a regulated structure.

The company's core business activities center on originating and managing bespoke financing arrangements for U.S.

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