Kayne Anderson BDC (NYSE:KBDC) Trading Down 1.5% - Should You Sell?

Key Points

• Kayne Anderson BDC shares fell 1.5% on Friday, closing at $13.7050 after trading as low as $13.63, with volume running about 20% above average.
• Analysts remain cautiously positive: the stock has a Moderate Buy consensus rating and a $15.12 price target, though Wells Fargo recently cut its target to $14 and kept an equal weight rating.
• The company reported better-than-expected EPS of $0.43 last quarter, but revenue missed estimates; it also paid a $0.40 quarterly dividend, implying an annualized yield of 11.7% with a payout ratio of 125%.

Kayne Anderson BDC, Inc. (NYSE:KBDC - Get Free Report)'s stock price fell 1.5% during trading on Friday . The stock traded as low as $13.63 and last traded at $13.7050. Approximately 332,006 shares were traded during trading, an increase of 20% from the average session volume of 276,693 shares. The stock had previously closed at $13.92.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on KBDC. Wells Fargo & Company restated an "equal weight" rating and set a $14.00 price objective (down from $15.00) on shares of Kayne Anderson BDC in a research note on Friday, June 12th. 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. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, Kayne Anderson BDC presently has a consensus rating of "Moderate Buy" and a consensus price target of $15.12.

Kayne Anderson BDC Stock Down 1.5%

The company has a debt-to-equity ratio of 1.04, a current ratio of 1.15 and a quick ratio of 1.15. The firm's 50 day moving average is $14.19 and its two-hundred day moving average is $14.20. The firm has a market capitalization of $909.33 million, a P/E ratio of 10.71 and a beta of 0.30.

Kayne Anderson BDC (NYSE:KBDC - Get Free Report) last issued its earnings results on Monday, May 11th. The company reported $0.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.41 by $0.02. The business had revenue of $24.86 million for the quarter, compared to the consensus estimate of $52.40 million. Kayne Anderson BDC had a net margin of 37.30% and a return on equity of 10.47%. Research analysts predict that Kayne Anderson BDC, Inc. will post 1.62 EPS for the current year.

Kayne Anderson BDC Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 16th. Stockholders of record on Tuesday, June 30th were paid a dividend of $0.40 per share. The ex-dividend date was Tuesday, June 30th. This represents a $1.60 annualized dividend and a dividend yield of 11.7%. Kayne Anderson BDC's payout ratio is currently 125.00%.

Institutional Investors Weigh In On Kayne Anderson BDC

Several hedge funds have recently bought and sold shares of KBDC. Advisory Services Network LLC raised its position in shares of Kayne Anderson BDC by 16.0% in the fourth quarter. Advisory Services Network LLC now owns 10,206 shares of the company's stock valued at $146,000 after purchasing an additional 1,407 shares during the period. BNP Paribas Financial Markets boosted its holdings in shares of Kayne Anderson BDC by 14.6% during the 3rd quarter. BNP Paribas Financial Markets now owns 17,265 shares of the company's stock worth $230,000 after buying an additional 2,203 shares during the period. Osaic Holdings Inc. boosted its holdings in shares of Kayne Anderson BDC by 70.9% during the 2nd quarter. Osaic Holdings Inc. now owns 10,268 shares of the company's stock worth $157,000 after buying an additional 4,261 shares during the period. Global View Capital Management LLC grew its stake in Kayne Anderson BDC by 50.0% in the 2nd quarter. Global View Capital Management LLC now owns 15,468 shares of the company's stock valued at $236,000 after buying an additional 5,156 shares during the last quarter. Finally, Invesco Ltd. grew its stake in Kayne Anderson BDC by 15.1% in the 2nd quarter. Invesco Ltd. now owns 45,063 shares of the company's stock valued at $688,000 after buying an additional 5,916 shares during the last quarter.

About Kayne Anderson BDC

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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