Golub Capital BDC (NASDAQ:GBDC) Rating Increased to Moderate Buy at Royal Bank Of Canada

Key Points

• Royal Bank of Canada upgraded Golub Capital BDC (NASDAQ:GBDC) to a "moderate buy"; the stock has a consensus "Buy" rating from analysts and an average target price of $14.50.
• GBDC reported quarterly EPS of $0.38 (in line with expectations) but revenue of $110.18 million, well below the $208.89 million consensus; the company has a P/E of 10.9 and a market cap of about $3.59 billion.
• Several institutional investors boosted stakes in the company (including STRS Ohio, VanEck, JPMorgan and Bank of America), and institutions now own roughly 42.4% of the shares.

Golub Capital BDC (NASDAQ:GBDC - Get Free Report) was upgraded by equities researchers at Royal Bank Of Canada to a "moderate buy" rating in a research report issued to clients and investors on Friday,Zacks.com reports.

A number of other analysts also recently issued reports on GBDC. Lucid Cap Mkts raised Golub Capital BDC to a "strong-buy" rating in a research report on Thursday, January 15th. Wells Fargo & Company lowered their target price on Golub Capital BDC from $14.00 to $13.00 and set an "overweight" rating on the stock in a research report on Friday, February 6th. Capital One Financial set a $15.00 target price on Golub Capital BDC in a research report on Thursday, January 15th. Wall Street Zen raised Golub Capital BDC from a "sell" rating to a "hold" rating in a research report on Saturday, April 11th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Golub Capital BDC in a report on Friday, March 27th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Buy" and an average target price of $14.50.

Golub Capital BDC Price Performance

NASDAQ:GBDC opened at $13.63 on Friday. The company has a debt-to-equity ratio of 1.25, a quick ratio of 2.24 and a current ratio of 2.24. The stock's 50-day simple moving average is $12.51 and its 200 day simple moving average is $13.32. The company has a market cap of $3.59 billion, a P/E ratio of 10.90 and a beta of 0.40. Golub Capital BDC has a 52-week low of $11.77 and a 52-week high of $15.63.

Golub Capital BDC (NASDAQ:GBDC - Get Free Report) last released its earnings results on Wednesday, February 4th. The investment management company reported $0.38 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.38. The business had revenue of $110.18 million for the quarter, compared to the consensus estimate of $208.89 million. Golub Capital BDC had a return on equity of 10.37% and a net margin of 38.57%.During the same quarter in the previous year, the business earned $0.42 earnings per share. As a group, sell-side analysts forecast that Golub Capital BDC will post 1.6 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Strs Ohio grew its holdings in Golub Capital BDC by 2.9% in the 4th quarter. Strs Ohio now owns 16,704,760 shares of the investment management company's stock valued at $226,684,000 after buying an additional 466,978 shares in the last quarter. Van ECK Associates Corp grew its holdings in Golub Capital BDC by 9.0% in the 3rd quarter. Van ECK Associates Corp now owns 4,843,816 shares of the investment management company's stock valued at $66,312,000 after buying an additional 401,723 shares in the last quarter. JPMorgan Chase & Co. boosted its stake in shares of Golub Capital BDC by 53.7% in the fourth quarter. JPMorgan Chase & Co. now owns 3,917,312 shares of the investment management company's stock valued at $53,158,000 after buying an additional 1,368,759 shares during the period. Bank of America Corp DE boosted its stake in shares of Golub Capital BDC by 5.7% in the third quarter. Bank of America Corp DE now owns 3,829,788 shares of the investment management company's stock valued at $52,430,000 after buying an additional 207,998 shares during the period. Finally, Sound Income Strategies LLC boosted its stake in shares of Golub Capital BDC by 6.6% in the fourth quarter. Sound Income Strategies LLC now owns 3,602,799 shares of the investment management company's stock valued at $49,791,000 after buying an additional 224,142 shares during the period. 42.38% of the stock is owned by institutional investors and hedge funds.

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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