Golub Capital BDC (NASDAQ:GBDC) Posts Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Golub Capital BDC reported $0.39 EPS for the quarter, exceeding estimates by $0.01.
• The company's stock has been upgraded from a "sell" to a "hold" rating, with a consensus price target set at $15.50.
• Chairman Lawrence E. Golub acquired over 6 million shares of Golub Capital BDC stock, significantly increasing his ownership stake.

Golub Capital BDC (NASDAQ:GBDC - Get Free Report) issued its quarterly earnings results on Monday. The investment management company reported $0.39 earnings per share for the quarter, topping the consensus estimate of $0.38 by $0.01, Zacks reports. The company had revenue of $218.34 million during the quarter, compared to analysts' expectations of $215.47 million. Golub Capital BDC had a net margin of 42.81% and a return on equity of 10.85%. During the same period last year, the business earned $0.39 EPS.

Golub Capital BDC Stock Performance

Golub Capital BDC stock traded down $0.04 during mid-day trading on Wednesday, reaching $14.76. The company had a trading volume of 659,090 shares, compared to its average volume of 1,446,665. Golub Capital BDC has a 52 week low of $12.68 and a 52 week high of $16.00. The firm has a market cap of $3.93 billion, a price-to-earnings ratio of 10.39 and a beta of 0.51. The company has a quick ratio of 3.01, a current ratio of 3.01 and a debt-to-equity ratio of 1.19. The company has a 50 day moving average of $14.95 and a 200-day moving average of $14.93.

Golub Capital BDC Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Monday, September 15th will be paid a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 10.6%. The ex-dividend date is Monday, September 15th. Golub Capital BDC's dividend payout ratio is currently 138.05%.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on GBDC shares. Bank of America decreased their price target on Golub Capital BDC from $16.50 to $15.50 and set a "buy" rating on the stock in a research report on Monday, May 12th. Wall Street Zen upgraded Golub Capital BDC from a "sell" rating to a "hold" rating in a research note on Tuesday, May 6th. Wells Fargo & Company cut their price objective on Golub Capital BDC from $15.00 to $14.00 and set an "equal weight" rating on the stock in a research report on Monday, April 28th. Finally, Keefe, Bruyette & Woods cut their price target on Golub Capital BDC from $16.50 to $15.50 and set an "outperform" rating for the company in a report on Tuesday, April 8th. Two research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat, Golub Capital BDC presently has an average rating of "Moderate Buy" and a consensus price target of $15.50.

Insiders Place Their Bets

In other Golub Capital BDC news, Chairman Lawrence E. Golub bought 6,059,971 shares of Golub Capital BDC stock in a transaction dated Tuesday, May 27th. The shares were bought at an average price of $15.13 per share, with a total value of $91,687,361.23. Following the purchase, the chairman owned 6,059,971 shares of the company's stock, valued at $91,687,361.23. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On Golub Capital BDC

Institutional investors and hedge funds have recently modified their holdings of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in shares of Golub Capital BDC during the 1st quarter worth approximately $6,491,000. Royal Bank of Canada increased its holdings in Golub Capital BDC by 41.4% in the 1st quarter. Royal Bank of Canada now owns 131,544 shares of the investment management company's stock worth $1,991,000 after acquiring an additional 38,534 shares during the last quarter. Empowered Funds LLC increased its holdings in Golub Capital BDC by 140.0% in the 1st quarter. Empowered Funds LLC now owns 27,411 shares of the investment management company's stock worth $415,000 after acquiring an additional 15,988 shares during the last quarter. NewEdge Advisors LLC increased its holdings in Golub Capital BDC by 19.7% in the 1st quarter. NewEdge Advisors LLC now owns 43,534 shares of the investment management company's stock worth $659,000 after acquiring an additional 7,178 shares during the last quarter. Finally, Focus Partners Wealth increased its holdings in Golub Capital BDC by 24.9% in the 1st quarter. Focus Partners Wealth now owns 33,355 shares of the investment management company's stock worth $505,000 after acquiring an additional 6,658 shares during the last quarter. 42.38% of the stock is currently owned by institutional investors and hedge funds.

About Golub Capital BDC

Golub Capital BDC, Inc (GBDC) is a business development company and operates as an externally managed closed-end non-diversified management investment company. It invests in debt and minority equity investments in middle-market companies that are, in most cases, sponsored by private equity investors.