Barings Bdc (NYSE:BBDC) Shares Break Above Two Hundred Day Moving Average - Here's Why

Key Points

• Barings BDC shares rose 1.9% and briefly traded above their 200-day moving average of $8.68, reaching $8.74 before closing near $8.735.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating from five analysts, with an average price target of $9.50, although Wells Fargo raised its target to $10.00 and assigned an “overweight” rating.
• The company reported quarterly EPS of $0.28, beating estimates by $0.03, and declared a quarterly dividend of $0.26 per share, equivalent to a 11.9% annualized yield.

Shares of Barings Bdc, Inc. (NYSE:BBDC - Get Free Report) passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $8.68 and traded as high as $8.74. Barings Bdc shares last traded at $8.7350, with a volume of 387,252 shares trading hands.

Analyst Ratings Changes

Several research firms recently issued reports on BBDC. Zacks Research lowered Barings Bdc from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, July 22nd. Weiss Ratings lowered shares of Barings Bdc from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, September 16th. Raymond James Financial set a $9.00 price target on shares of Barings Bdc in a research note on Thursday, October 22nd. Finally, Wells Fargo & Company increased their price target on shares of Barings Bdc from $9.50 to $10.00 and gave the stock an "overweight" rating in a research report on Monday, August 10th. One analyst has rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, Barings Bdc presently has a consensus rating of "Hold" and an average price target of $9.50.

Barings Bdc Trading Up 1.9%

The company's 50 day simple moving average is $8.76 and its 200 day simple moving average is $8.68. The firm has a market cap of $914.64 million, a price-to-earnings ratio of 10.52 and a beta of 0.64. The company has a debt-to-equity ratio of 0.24, a current ratio of 0.09 and a quick ratio of 0.09.

Barings Bdc (NYSE:BBDC - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.25 by $0.03. The business had revenue of $54.58 million for the quarter, compared to analysts' expectations of $60.10 million. Barings Bdc had a return on equity of 10.07% and a net margin of 32.73%. During the same period last year, the firm earned $0.28 earnings per share. As a group, research analysts expect that Barings Bdc, Inc. will post 1.04 earnings per share for the current fiscal year.

Barings Bdc Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Wednesday, September 2nd were issued a dividend of $0.26 per share. The ex-dividend date was Wednesday, September 2nd. This represents a $1.04 annualized dividend and a yield of 11.9%. Barings Bdc's dividend payout ratio is 125.30%.

Institutional Investors Weigh In On Barings Bdc

A number of hedge funds have recently bought and sold shares of BBDC. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Barings Bdc during the second quarter worth approximately $28,000. Quantbot Technologies LP acquired a new stake in Barings Bdc in the second quarter valued at approximately $35,000. Global Assets Advisory LLC purchased a new position in Barings Bdc in the first quarter worth approximately $79,000. Sanctuary Advisors LLC purchased a new position in Barings Bdc in the second quarter worth approximately $89,000. Finally, Simplicity Wealth LLC purchased a new position in Barings Bdc in the first quarter worth approximately $91,000. Institutional investors and hedge funds own 44.09% of the company's stock.

Barings Bdc Company Profile

Barings BDC, Inc NYSE: BBDC is a business development company that provides financing to privately owned, middle-market businesses. The company seeks to support companies across a range of industries by investing in their debt and equity securities.

Barings BDC primarily invests in senior secured loans, including first-lien and second-lien debt, as well as subordinated debt and selected equity investments. Its portfolio companies are generally based in the United States and may use the financing for acquisitions, recapitalizations, refinancing, growth initiatives, and other corporate purposes.

The company was formerly known as Triangle Capital Corporation and adopted the Barings BDC name following a change in its investment management arrangements.

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