Golub Capital BDC (NASDAQ:GBDC) Posts Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• EPS miss: Golub Capital BDC reported Q results of $0.34 EPS, missing the $0.36 consensus by $0.02, and reported a 10.37% ROE and 38.57% net margin; notably revenue was negative $5.28 million versus analysts' $201.71 million estimate.
• Shares fell about 0.9% to $13.68 on the report; the stock trades at a P/E of 10.94 with a market cap of $3.60 billion and an average analyst price target of $14.50 (consensus: Buy).
• Institutional buying: Several funds increased positions—JPMorgan added ~1.37M shares (+53.7%) and Rivernorth ~1.19M shares (+226.6%)—with institutional investors owning roughly 42.38% of the company.

Golub Capital BDC (NASDAQ:GBDC - Get Free Report) issued its earnings results on Monday. The investment management company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.36 by ($0.02), Zacks reports. Golub Capital BDC had a return on equity of 10.37% and a net margin of 38.57%.The firm had revenue of ($5.28) million during the quarter, compared to analysts' expectations of $201.71 million. During the same period last year, the business posted $0.30 earnings per share.

Golub Capital BDC Stock Down 0.9%

Shares of NASDAQ GBDC traded down $0.12 during trading on Monday, reaching $13.68. 2,010,700 shares of the stock were exchanged, compared to its average volume of 2,493,580. The company has a market capitalization of $3.60 billion, a price-to-earnings ratio of 10.94 and a beta of 0.41. The business's 50-day moving average price is $12.66 and its 200 day moving average price is $13.29. The company has a quick ratio of 2.24, a current ratio of 2.24 and a debt-to-equity ratio of 1.25. Golub Capital BDC has a twelve month low of $11.77 and a twelve month high of $15.63.

Hedge Funds Weigh In On Golub Capital BDC

A number of institutional investors have recently added to or reduced their stakes in GBDC. JPMorgan Chase & Co. grew its position in shares of Golub Capital BDC by 53.7% during the fourth quarter. JPMorgan Chase & Co. now owns 3,917,312 shares of the investment management company's stock worth $53,158,000 after buying an additional 1,368,759 shares in the last quarter. Rivernorth Capital Management LLC boosted its stake in Golub Capital BDC by 226.6% during the 4th quarter. Rivernorth Capital Management LLC now owns 1,714,828 shares of the investment management company's stock valued at $23,270,000 after acquiring an additional 1,189,706 shares during the last quarter. Coastal Bridge Advisors LLC acquired a new position in Golub Capital BDC during the 4th quarter worth $6,760,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new position in Golub Capital BDC during the 1st quarter worth $6,491,000. Finally, Raymond James Financial Inc. increased its position in shares of Golub Capital BDC by 107.1% in the 3rd quarter. Raymond James Financial Inc. now owns 789,968 shares of the investment management company's stock worth $10,815,000 after purchasing an additional 408,510 shares during the last quarter. Institutional investors and hedge funds own 42.38% of the company's stock.

Analysts Set New Price Targets

GBDC has been the subject of several research analyst reports. Wells Fargo & Company dropped their price target on Golub Capital BDC from $14.00 to $13.00 and set an "overweight" rating for the company in a research note on Friday, February 6th. Lucid Cap Mkts upgraded Golub Capital BDC to a "strong-buy" rating in a 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. Capital One Financial set a $15.00 price target on shares of Golub Capital BDC in a research report on Thursday, January 15th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Golub Capital BDC in a research report on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, Golub Capital BDC has a consensus rating of "Buy" and an average price target of $14.50.

Golub Capital BDC Company Profile

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.