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 of $19.00, reaching $19.50 before closing at $19.33 on trading volume of 234,169 shares.
• Analysts maintain a consensus “Hold” rating, with two Buy ratings and three Hold ratings; the average price target is $21.67. Weiss Ratings separately upgraded the stock’s rating from “hold (c-)” to “hold (c).”
• The company slightly exceeded quarterly EPS expectations, reporting $0.49 versus the $0.48 consensus, and announced a $0.18 special dividend. Institutional investors own approximately 10.72% of GLAD.

Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report)'s share price passed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $19.00 and traded as high as $19.50. Gladstone Capital shares last traded at $19.33, with a volume of 234,169 shares.

Wall Street Analysts Forecast Growth

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

Gladstone Capital Trading Down 0.5%

The firm has a market cap of $436.66 million, a PE ratio of 9.38 and a beta of 0.93. The company's 50-day moving average is $19.59 and its 200 day moving average is $19.00.

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. Gladstone Capital had a net margin of 50.48% and a return on equity of 9.67%. The firm had revenue of $24.50 million during the quarter, compared to analyst estimates of $24.90 million. On average, research analysts predict that Gladstone Capital Corporation will post 1.99 EPS for the current fiscal year.

Gladstone Capital Dividend Announcement

The firm also recently announced a special dividend, which was paid on Wednesday, September 16th. Stockholders of record on Thursday, September 10th were given a $0.18 dividend. The ex-dividend date of this dividend was Thursday, September 10th. Gladstone Capital's dividend payout ratio (DPR) is 87.38%.

Institutional Trading of Gladstone Capital

A number of hedge funds have recently made changes to their positions in GLAD. Miller Global Investments LLC purchased a new position in Gladstone Capital during the second quarter valued at approximately $311,000. Sunbelt Securities Inc. purchased a new stake in Gladstone Capital in the 1st quarter worth approximately $142,000. Entropy Technologies LP acquired a new stake in shares of Gladstone Capital during the 1st quarter valued at $179,000. Closed End Fund Advisors Inc. acquired a new stake in shares of Gladstone Capital during the 4th quarter valued at $551,000. Finally, UBS Group AG grew its holdings in shares of Gladstone Capital by 18.0% during the 4th quarter. UBS Group AG now owns 271,702 shares of the investment management company's stock valued at $5,613,000 after acquiring an additional 41,484 shares in the last quarter. 10.72% of the stock is owned by hedge funds and other institutional investors.

About Gladstone Capital

Gladstone Capital Corporation is a business development company that provides financing to privately held, lower middle-market companies in the United States. The company primarily seeks to support established businesses with debt and equity capital, often working with companies that may have limited access to traditional bank financing.

Its investment activities generally include senior and subordinated secured loans, unsecured debt, and equity investments. Gladstone Capital may provide financing for acquisitions, recapitalizations, refinancing, growth initiatives, and other corporate purposes.

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