Golub Capital BDC (NASDAQ:GBDC) Posts Quarterly Earnings Results, Beats Expectations 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) announced its quarterly earnings results on Monday. The investment management company reported $0.39 earnings per share for the quarter, beating analysts' consensus estimates of $0.38 by $0.01, Zacks reports. The business had revenue of $218.34 million for the quarter, compared to the consensus estimate of $215.47 million. Golub Capital BDC had a net margin of 42.81% and a return on equity of 10.87%. During the same period last year, the company posted $0.39 EPS.

Golub Capital BDC Trading Up 0.6%

NASDAQ:GBDC traded up $0.09 on Friday, reaching $14.82. 317,084 shares of the stock traded hands, compared to its average volume of 1,437,883. The firm has a market capitalization of $3.95 billion, a price-to-earnings ratio of 10.44 and a beta of 0.51. The company's 50 day moving average is $14.93 and its 200-day moving average is $14.92. The company has a current ratio of 2.37, a quick ratio of 3.01 and a debt-to-equity ratio of 1.28. Golub Capital BDC has a 1-year low of $12.68 and a 1-year high of $16.00.

Golub Capital BDC Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Monday, September 15th will be given a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a yield of 10.5%. The ex-dividend date of this dividend is Monday, September 15th. Golub Capital BDC's dividend payout ratio is currently 109.86%.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on GBDC shares. Wells Fargo & Company cut their price target on shares of 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. Wall Street Zen upgraded shares of Golub Capital BDC from a "sell" rating to a "hold" rating in a report on Tuesday, May 6th. Finally, Bank of America lowered their price objective on shares of Golub Capital BDC from $16.50 to $15.50 and set a "buy" rating on the stock in a report on Monday, May 12th.

Insiders Place Their Bets

In other Golub Capital BDC news, Chairman Lawrence E. Golub purchased 6,059,971 shares of the business's stock in a transaction on Tuesday, May 27th. The shares were purchased at an average cost of $15.13 per share, for a total transaction of $91,687,361.23. Following the acquisition, the chairman owned 6,059,971 shares of the company's stock, valued at approximately $91,687,361.23. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate 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 business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new position in shares of Golub Capital BDC in the 1st quarter worth $6,491,000. Royal Bank of Canada raised its position 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 valued at $1,991,000 after buying an additional 38,534 shares during the last quarter. NewEdge Advisors LLC raised its position 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 valued at $659,000 after buying an additional 7,178 shares during the last quarter. Focus Partners Wealth increased its position in shares of Golub Capital BDC by 24.9% during the 1st quarter. Focus Partners Wealth now owns 33,355 shares of the investment management company's stock valued at $505,000 after purchasing an additional 6,658 shares during the last quarter. Finally, Empowered Funds LLC increased its position in shares of Golub Capital BDC by 140.0% during the 1st quarter. Empowered Funds LLC now owns 27,411 shares of the investment management company's stock valued at $415,000 after purchasing an additional 15,988 shares during the last quarter. 42.38% of the stock is currently owned by institutional investors.

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.