Golub Capital BDC (NASDAQ:GBDC) Shares Gap Down on Disappointing Earnings

Key Points

• Shares gapped down after Golub Capital BDC reported Q earnings of $0.34 per share versus a $0.36 consensus, opening at $12.96 after a $13.68 close and reporting revenue of -$5.28M versus a $201.71M estimate.
• The firm announced a quarterly dividend of $0.33 (annualized $1.32), implying a 10.0% yield and a payout ratio of 105.6%, with ex-dividend on June 15 and payment on June 29.
• Analyst views are mixed but the MarketBeat consensus is a Buy with an average price target of $14.50, amid individual actions ranging from RBC's "Outperform" ($15) to Wall Street Zen's downgrade to "Sell."

Shares of Golub Capital BDC, Inc. (NASDAQ:GBDC - Get Free Report) gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $13.68, but opened at $12.96. Golub Capital BDC shares last traded at $13.1530, with a volume of 417,944 shares.

The investment management company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.36 by ($0.02). Golub Capital BDC had a net margin of 38.57% and a return on equity of 10.37%. The business had revenue of ($5.28) million for the quarter, compared to the consensus estimate of $201.71 million. During the same period in the previous year, the firm earned $0.30 EPS.

Golub Capital BDC Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 29th. Investors of record on Monday, June 15th will be issued a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 10.0%. The ex-dividend date is Monday, June 15th. Golub Capital BDC's payout ratio is presently 105.60%.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the company. Royal Bank Of Canada assumed coverage on Golub Capital BDC in a report on Friday, April 17th. They issued an "outperform" rating and a $15.00 target price on the stock. Lucid Cap Mkts upgraded Golub Capital BDC to a "strong-buy" rating in a report on Thursday, January 15th. Weiss Ratings restated a "hold (c)" rating on shares of Golub Capital BDC in a report on Friday, March 27th. Wells Fargo & Company lowered their price target on Golub Capital BDC from $14.00 to $13.00 and set an "overweight" rating on the stock in a report on Friday, February 6th. Finally, Wall Street Zen downgraded Golub Capital BDC from a "hold" rating to a "sell" rating in a report on Sunday, April 19th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, Golub Capital BDC has a consensus rating of "Buy" and an average price target of $14.50.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Strs Ohio boosted its stake in shares of Golub Capital BDC by 2.6% during the 1st quarter. Strs Ohio now owns 17,140,532 shares of the investment management company's stock worth $216,999,000 after acquiring an additional 435,772 shares in the last quarter. Van ECK Associates Corp boosted its stake in shares of Golub Capital BDC by 9.0% during the 3rd quarter. Van ECK Associates Corp now owns 4,843,816 shares of the investment management company's stock worth $66,312,000 after acquiring an additional 401,723 shares in the last quarter. JPMorgan Chase & Co. boosted its stake in shares of Golub Capital BDC by 53.7% during the 4th quarter. JPMorgan Chase & Co. now owns 3,917,312 shares of the investment management company's stock worth $53,158,000 after acquiring an additional 1,368,759 shares in the last quarter. Bank of America Corp DE raised its holdings in Golub Capital BDC by 5.7% in the 3rd quarter. Bank of America Corp DE now owns 3,829,788 shares of the investment management company's stock worth $52,430,000 after acquiring an additional 207,998 shares during the period. Finally, Sound Income Strategies LLC raised its holdings in Golub Capital BDC by 4.1% in the 1st quarter. Sound Income Strategies LLC now owns 3,750,533 shares of the investment management company's stock worth $46,882,000 after acquiring an additional 147,734 shares during the period. Institutional investors own 42.38% of the company's stock.

Golub Capital BDC Stock Down 3.1%

The stock has a market cap of $3.49 billion, a P/E ratio of 10.60 and a beta of 0.41. The company has a current ratio of 2.24, a quick ratio of 2.24 and a debt-to-equity ratio of 1.25. The firm's fifty day moving average is $12.66 and its 200 day moving average is $13.29.

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.

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