Short Interest in Kayne Anderson BDC, Inc. (NYSE:KBDC) Drops By 36.3%

Key Points

• Short interest in Kayne Anderson BDC fell 36.3% to 324,408 shares as of August 14, representing about 0.5% of shares outstanding and 0.7 days of average trading volume.
• Analyst sentiment is mixed, with two Buy, two Hold and one Sell rating; the overall consensus is Hold with a $14.88 price target.
• KBDC reported quarterly EPS of $0.42, ahead of the $0.40 estimate, and announced a $0.40 quarterly dividend, equivalent to a 11.9% annualized yield.

Kayne Anderson BDC, Inc. (NYSE:KBDC - Get Free Report) saw a significant decrease in short interest during the month of August. As of August 14th, there was short interest totaling 324,408 shares, a decrease of 36.3% from the July 30th total of 509,193 shares. Approximately 0.5% of the shares of the stock are sold short. Based on an average daily volume of 444,009 shares, the short-interest ratio is presently 0.7 days.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on KBDC. Wells Fargo & Company reaffirmed an "equal weight" rating and set a $14.00 price target (down from $15.00) on shares of Kayne Anderson BDC in a research note on Friday, June 12th. Zacks Research cut shares of Kayne Anderson BDC from a "hold" rating to a "strong sell" rating in a research note on Tuesday, August 18th. Finally, Royal Bank Of Canada dropped their target price on shares of Kayne Anderson BDC from $16.00 to $15.00 and set an "outperform" rating for the company in a report on Thursday, August 13th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Kayne Anderson BDC currently has an average rating of "Hold" and a consensus price target of $14.88.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. HB Wealth Management LLC boosted its stake in shares of Kayne Anderson BDC by 19.1% during the 2nd quarter. HB Wealth Management LLC now owns 280,189 shares of the company's stock worth $3,791,000 after purchasing an additional 44,848 shares during the last quarter. Requisite Capital Management LLC lifted its stake in shares of Kayne Anderson BDC by 6.5% during the second quarter. Requisite Capital Management LLC now owns 645,130 shares of the company's stock valued at $8,987,000 after buying an additional 39,385 shares during the period. Pin Oak Investment Advisors Inc. purchased a new position in shares of Kayne Anderson BDC during the second quarter valued at approximately $248,000. Hennion & Walsh Asset Management Inc. boosted its position in 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 worth $1,350,000 after acquiring an additional 31,444 shares during the last quarter. Finally, Bank of America Corp DE boosted 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 last quarter.

Kayne Anderson BDC Price Performance

KBDC stock opened at $13.45 on Monday. Kayne Anderson BDC has a 1 year low of $13.06 and a 1 year high of $15.87. The company has a debt-to-equity ratio of 1.16, a quick ratio of 1.25 and a current ratio of 1.25. The stock's 50 day moving average price is $13.62 and its 200 day moving average price is $14.01. The firm has a market cap of $888.24 million, a P/E ratio of 12.34 and a beta of 0.31.

Kayne Anderson BDC (NYSE:KBDC - Get Free Report) last released 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 return on equity of 10.63% and a net margin of 31.54%.The company had revenue of $19.27 million during the quarter, compared to the consensus estimate of $51.86 million. On average, sell-side analysts expect that Kayne Anderson BDC will post 1.61 earnings per share for the current fiscal year.

Kayne Anderson BDC Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Investors of record on Wednesday, September 30th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 11.9%. The ex-dividend date is Wednesday, September 30th. Kayne Anderson BDC's dividend payout ratio (DPR) is currently 146.79%.

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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