Kayne Anderson BDC (NYSE:KBDC) Shares Gap Down - Here's Why

Key Points

• KBDC shares fell at the open, dropping from a previous close of $13.97 to $13.40 before recovering to around $13.80. The company has a “Moderate Buy” consensus rating and an average analyst price target of $15.12.
• Kayne Anderson BDC exceeded quarterly earnings expectations, reporting $0.42 in EPS versus the $0.40 consensus, although revenue of $19.27 million was below the $51.86 million estimate.
• The company declared a quarterly dividend of $0.40 per share, or $1.60 annualized, implying an approximately 11.7% yield; however, its payout ratio is high at 125%.

Kayne Anderson BDC, Inc. (NYSE:KBDC - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $13.97, but opened at $13.40. Kayne Anderson BDC shares last traded at $13.7950, with a volume of 61,208 shares changing hands.

Analyst Upgrades and Downgrades

KBDC has been the topic of a number of research analyst reports. UBS Group upped their target price on Kayne Anderson BDC from $14.50 to $15.00 and gave the stock a "neutral" rating in a report on Monday, April 20th. Wells Fargo & Company restated an "equal weight" rating and issued a $14.00 target price (down from $15.00) on shares of Kayne Anderson BDC in a report on Friday, June 12th. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $15.12.

Kayne Anderson BDC Price Performance

The firm has a market capitalization of $910.92 million, a PE ratio of 10.75 and a beta of 0.31. The firm's fifty day moving average price is $13.84 and its 200 day moving average price is $14.09. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 1.04.

Kayne Anderson BDC (NYSE:KBDC - Get Free Report) last posted its quarterly earnings results on Monday, August 10th. The company reported $0.42 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.02. Kayne Anderson BDC had a net margin of 37.30% and a return on equity of 10.47%. The firm had revenue of $19.27 million for the quarter, compared to the consensus estimate of $51.86 million. As a group, equities analysts forecast that Kayne Anderson BDC, Inc. will post 1.62 earnings per share for the current year.

Kayne Anderson BDC Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Investors of record on Wednesday, September 30th will be paid a dividend of $0.40 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $1.60 annualized dividend and a dividend yield of 11.7%. Kayne Anderson BDC's dividend payout ratio is presently 125.00%.

Hedge Funds Weigh In On Kayne Anderson BDC

Large investors have recently added to or reduced their stakes in the company. Hennion & Walsh Asset Management Inc. raised its holdings in shares of Kayne Anderson BDC by 46.0% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 99,755 shares of the company's stock valued at $1,350,000 after acquiring an additional 31,444 shares during the period. Bank of America Corp DE increased its position in Kayne Anderson BDC by 2.7% during the first quarter. Bank of America Corp DE now owns 5,565,223 shares of the company's stock worth $76,355,000 after acquiring an additional 143,854 shares during the period. Royal Bank of Canada increased its position in shares of Kayne Anderson BDC by 62.8% during the first quarter. Royal Bank of Canada now owns 67,563 shares of the company's stock valued at $927,000 after purchasing an additional 26,066 shares during the period. Renaissance Technologies LLC increased its stake in Kayne Anderson BDC by 101.8% in the first quarter. Renaissance Technologies LLC now owns 145,322 shares of the company's stock valued at $1,994,000 after acquiring an additional 73,322 shares during the period. Finally, Sei Investments Co. acquired a new stake in shares of Kayne Anderson BDC in the 1st quarter valued at $730,000.

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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