Gladstone Capital (NASDAQ:GLAD) Shares Break Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Gladstone Capital shares rose above their 200-day moving average, reaching $19.16 and closing near $19.13, while the stock has a market capitalization of approximately $432 million.
• Analyst sentiment is moderately positive: three analysts rate GLAD a Buy and three rate it a Hold, producing a consensus “Moderate Buy” rating and a $21.67 price target.
• The company declared a $0.15 monthly dividend, equivalent to $1.80 annually and a 9.4% yield, though its payout ratio is elevated at 87.38%.

Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) shares passed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $19.12 and traded as high as $19.16. Gladstone Capital shares last traded at $19.13, with a volume of 111,038 shares trading hands.

Analyst Ratings Changes

GLAD has been the topic of several research analyst reports. ATB Cormark Capital Markets upgraded shares of Gladstone Capital to a "moderate buy" rating in a report on Thursday, October 8th. Weiss Ratings cut shares of Gladstone Capital from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, October 14th. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $21.67.

Gladstone Capital Stock Up 2.0%

The firm has a market cap of $432.15 million, a P/E ratio of 9.29 and a beta of 0.94. The business has a fifty day moving average of $19.28 and a 200 day moving average of $19.12.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The investment management company reported $0.49 EPS for the quarter, topping analysts' consensus estimates of $0.48 by $0.01. The firm had revenue of $24.50 million for the quarter, compared to analyst estimates of $24.90 million. Gladstone Capital had a return on equity of 9.67% and a net margin of 50.48%. Research analysts expect that Gladstone Capital Corporation will post 1.99 EPS for the current year.

Gladstone Capital Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Monday, December 21st will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Monday, December 21st. This represents a $1.80 annualized dividend and a dividend yield of 9.4%. Gladstone Capital's dividend payout ratio (DPR) is 87.38%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. International Assets Investment Management LLC raised its holdings in shares of Gladstone Capital by 1,463.6% in the third quarter. International Assets Investment Management LLC now owns 250,000 shares of the investment management company's stock valued at $4,808,000 after purchasing an additional 234,011 shares during the last quarter. B. Riley Wealth Advisors Inc. lifted its holdings in Gladstone Capital by 66.0% during the third quarter. B. Riley Wealth Advisors Inc. now owns 225,027 shares of the investment management company's stock valued at $4,327,000 after purchasing an additional 89,446 shares during the last quarter. Miller Global Investments LLC boosted its holdings in Gladstone Capital by 200.8% in the 3rd quarter. Miller Global Investments LLC now owns 48,139 shares of the investment management company's stock worth $926,000 after buying an additional 32,136 shares during the period. Fortress Financial Solutions LLC bought a new position in Gladstone Capital in the 3rd quarter worth about $263,000. Finally, Entropy Technologies LP purchased a new stake in Gladstone Capital in the 1st quarter worth approximately $179,000. 10.72% of the stock is owned by institutional investors.

About Gladstone Capital

Gladstone Capital Corporation is a business development company that provides financing to small and mid-sized businesses in the United States. The company seeks to support established companies by investing in a combination of debt and equity securities.

Its investments may include first- and second-lien secured loans, unsecured and subordinated debt, mezzanine financing, and equity interests. Gladstone Capital generally partners with businesses across a range of industries, providing capital intended to support acquisitions, recapitalizations, growth initiatives, and other corporate financing needs.

Founded in 2001, Gladstone Capital is externally managed by Gladstone Management Corporation, an investment adviser affiliated with the broader Gladstone group of companies.

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