Kayne Anderson BDC, Inc. (NYSE:KBDC) Short Interest Update

Key Points

• Short interest fell 19.3% — short interest declined to 514,661 shares as of April 15 (about 0.8% of shares) with a days-to-cover ratio of 1.8.
• High dividend yield but stretched payout — the company pays a $0.40 quarterly dividend ($1.60 annualized) for a 10.7% yield, while the dividend payout ratio is roughly 120.3%, suggesting potential sustainability concerns.
• Mixed quarterly results — KBDC reported $0.44 EPS (beating the $0.41 estimate) but revenue missed at $33.44M versus $56.48M expected; analysts forecast about 1.6 EPS for the year.

Kayne Anderson BDC, Inc. (NYSE:KBDC - Get Free Report) was the recipient of a large drop in short interest in April. As of April 15th, there was short interest totaling 514,661 shares, a drop of 19.3% from the March 31st total of 637,384 shares. Approximately 0.8% of the shares of the stock are sold short. Based on an average daily trading volume, of 293,716 shares, the days-to-cover ratio is presently 1.8 days.

Kayne Anderson BDC Price Performance

KBDC stock traded up $0.48 during mid-day trading on Thursday, reaching $14.92. The company's stock had a trading volume of 200,213 shares, compared to its average volume of 264,815. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.01. The company's 50 day moving average is $14.02 and its two-hundred day moving average is $14.38. Kayne Anderson BDC has a fifty-two week low of $13.06 and a fifty-two week high of $16.40. The stock has a market cap of $991.20 million, a PE ratio of 11.22 and a beta of 0.04.

Kayne Anderson BDC (NYSE:KBDC - Get Free Report) last issued its earnings results on Monday, March 2nd. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.03. Kayne Anderson BDC had a return on equity of 10.23% and a net margin of 39.74%.The business had revenue of $33.44 million for the quarter, compared to analysts' expectations of $56.48 million. Equities research analysts expect that Kayne Anderson BDC will post 1.6 EPS for the current year.

Kayne Anderson BDC Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, April 16th. Shareholders of record on Tuesday, March 31st were issued a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 10.7%. The ex-dividend date was Tuesday, March 31st. Kayne Anderson BDC's dividend payout ratio is presently 120.30%.

Insider Transactions at Kayne Anderson BDC

In other news, Director George E. Marucci, Jr. acquired 9,000 shares of the stock in a transaction that occurred on Friday, March 6th. The shares were bought at an average cost of $13.74 per share, for a total transaction of $123,660.00. Following the acquisition, the director owned 10,000 shares in the company, valued at approximately $137,400. This represents a 900.00% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 3.10% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. NewEdge Advisors LLC acquired a new position in shares of Kayne Anderson BDC during the 1st quarter valued at about $228,000. Goldman Sachs Group Inc. increased its position in Kayne Anderson BDC by 119.7% during the first quarter. Goldman Sachs Group Inc. now owns 30,285 shares of the company's stock worth $491,000 after purchasing an additional 16,501 shares during the last quarter. Acadian Asset Management LLC increased its position in Kayne Anderson BDC by 341.2% during the first quarter. Acadian Asset Management LLC now owns 10,788 shares of the company's stock worth $173,000 after purchasing an additional 8,343 shares during the last quarter. JPMorgan Chase & Co. raised its stake in Kayne Anderson BDC by 294.3% during the second quarter. JPMorgan Chase & Co. now owns 19,301 shares of the company's stock worth $295,000 after purchasing an additional 14,406 shares during the period. Finally, Invesco Ltd. raised its stake in Kayne Anderson BDC by 15.1% during the second quarter. Invesco Ltd. now owns 45,063 shares of the company's stock worth $688,000 after purchasing an additional 5,916 shares during the period.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on KBDC shares. Keefe, Bruyette & Woods lowered their price target on Kayne Anderson BDC from $16.00 to $15.50 and set an "outperform" rating on the stock in a research note on Wednesday, March 4th. Wells Fargo & Company reduced their price objective on Kayne Anderson BDC from $15.00 to $14.00 and set an "overweight" rating for the company in a research note on Wednesday, March 4th. Finally, UBS Group lifted their target price on shares of Kayne Anderson BDC from $14.50 to $15.00 and gave the stock a "neutral" rating in a research note on Monday, April 20th. Three equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $15.13.

Kayne Anderson BDC Company Profile

Kayne Anderson BDC, Inc NYSE: KBDC is a closed-end, non-diversified management investment company structured as a business development company under the Investment Company Act of 1940. The firm focuses on providing bespoke financing solutions to U.S. middle-market companies, offering first-lien and second-lien secured loans, unitranche facilities, mezzanine debt and selected equity co-investments. KBDC targets businesses with EBITDA profiles generally ranging from $10 million to $100 million, aiming to generate attractive income and potential capital appreciation for shareholders.

The company's portfolio spans a variety of sectors, including healthcare, technology, energy services, consumer products and industrials.

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