Gladstone Capital (NASDAQ:GLAD) Shares Cross Above 200-Day Moving Average - Should You Sell?

Key Points

• Gladstone Capital shares rose above their 200-day moving average, reaching $20.19 before last trading at $19.90, compared with a 200-day average of $18.95.
• Analysts maintain an average “Hold” rating, with two Buy ratings, three Hold ratings, and an average price target of $21.67. The company slightly exceeded quarterly EPS expectations, reporting $0.49 versus the $0.48 consensus.
• Gladstone Capital announced a $0.18-per-share special dividend payable September 16 to shareholders of record September 10; its dividend payout ratio is 87.38%.

Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $18.95 and traded as high as $20.19. Gladstone Capital shares last traded at $19.90, with a volume of 201,997 shares trading hands.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings upgraded shares of Gladstone Capital from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 2nd. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, Gladstone Capital has an average rating of "Hold" and an average price target of $21.67.

Gladstone Capital Stock Down 1.0%

The firm has a fifty day moving average of $19.60 and a 200-day moving average of $18.95. The stock has a market capitalization of $449.54 million, a price-to-earnings ratio of 9.66 and a beta of 0.93.

Gladstone Capital (NASDAQ:GLAD - Get Free Report) last posted its earnings results on Tuesday, August 4th. The investment management company reported $0.49 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.01. The company 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%. As a group, research analysts forecast that Gladstone Capital Corporation will post 1.99 EPS for the current fiscal year.

Gladstone Capital Announces Dividend

The firm also recently announced a special dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Thursday, September 10th will be issued a dividend of $0.18 per share. The ex-dividend date is Thursday, September 10th. Gladstone Capital's dividend payout ratio (DPR) is 87.38%.

Institutional Trading of Gladstone Capital

Several institutional investors and hedge funds have recently modified their holdings of the business. UBS Group AG grew its position in shares of Gladstone Capital by 18.0% in the fourth quarter. UBS Group AG now owns 271,702 shares of the investment management company's stock valued at $5,613,000 after purchasing an additional 41,484 shares during the last quarter. Marshall Wace LLP increased its stake in shares of Gladstone Capital by 1.0% during the 4th quarter. Marshall Wace LLP now owns 110,304 shares of the investment management company's stock worth $2,279,000 after purchasing an additional 1,041 shares in the last quarter. Two Sigma Investments LP raised its position in shares of Gladstone Capital by 39.1% during the 3rd quarter. Two Sigma Investments LP now owns 89,519 shares of the investment management company's stock worth $1,958,000 after purchasing an additional 25,181 shares during the last quarter. Advisors Asset Management Inc. raised its position in shares of Gladstone Capital by 2.7% during the 4th quarter. Advisors Asset Management Inc. now owns 64,909 shares of the investment management company's stock worth $1,341,000 after purchasing an additional 1,727 shares during the last quarter. Finally, Raymond James Financial Inc. raised its position in shares of Gladstone Capital by 36.0% during the 3rd quarter. Raymond James Financial Inc. now owns 59,261 shares of the investment management company's stock worth $1,296,000 after purchasing an additional 15,681 shares during the last quarter. Hedge funds and other institutional investors own 10.72% of the company's stock.

About Gladstone Capital

Gladstone Capital Corporation is a publicly traded business development company (BDC) that provides debt and equity financing solutions to U.S. lower middle-market companies. Operating under an external management agreement with Gladstone Management L.P., the firm offers senior secured loans, mezzanine debt and equity investments designed to support growth initiatives, acquisitions and recapitalizations. Through its focus on privately held businesses, Gladstone Capital seeks to construct a diversified portfolio across various industry sectors.

Since its formation in 2003, Gladstone Capital has developed a track record of working closely with management teams and business owners to meet their capital needs.

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