Gladstone Capital (NASDAQ:GLAD) Stock Passes Above 200-Day Moving Average - Here's Why

Key Points

• Gladstone Capital shares rose above their 200-day moving average, reaching $20.38 and last trading at $20.15, compared with the $18.89 long-term average.
• Analysts maintain a generally cautious outlook, with two Buy ratings and three Holds; the consensus rating is Hold and the average price target is $21.67.
• The company reported quarterly EPS of $0.49, slightly exceeding estimates, and declared a $0.15 monthly dividend, implying an annualized yield of about 8.9%.

Gladstone Capital Corporation (NASDAQ:GLAD - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $18.89 and traded as high as $20.38. Gladstone Capital shares last traded at $20.15, with a volume of 231,518 shares trading hands.

Analysts Set New Price Targets

A number of analysts have commented on GLAD shares. Weiss Ratings upgraded Gladstone Capital from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 2nd. B. Riley Financial reaffirmed a "buy" rating on shares of Gladstone Capital in a research note on Friday, May 8th. Two equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Gladstone Capital currently has an average rating of "Hold" and a consensus target price of $21.67.

Gladstone Capital Stock Performance

The stock has a market capitalization of $455.19 million, a price-to-earnings ratio of 9.78 and a beta of 0.92. The company has a 50-day moving average of $19.47 and a 200-day moving average of $18.89.

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

Gladstone Capital Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be paid a dividend of $0.15 per share. The ex-dividend date of this dividend is Monday, September 21st. This represents a c) dividend on an annualized basis and a dividend yield of 8.9%. Gladstone Capital's dividend payout ratio (DPR) is presently 87.38%.

Institutional Trading of Gladstone Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. lifted its holdings in Gladstone Capital by 1.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 28,853 shares of the investment management company's stock valued at $792,000 after purchasing an additional 456 shares in the last quarter. Marshall Wace LLP grew its holdings in shares of Gladstone Capital by 1.0% during the fourth quarter. Marshall Wace LLP now owns 110,304 shares of the investment management company's stock worth $2,279,000 after buying an additional 1,041 shares in the last quarter. Ausdal Financial Partners Inc. grew its holdings in shares of Gladstone Capital by 4.3% during the fourth quarter. Ausdal Financial Partners Inc. now owns 29,896 shares of the investment management company's stock worth $618,000 after buying an additional 1,222 shares in the last quarter. Quantbot Technologies LP raised its position in shares of Gladstone Capital by 52.7% in the second quarter. Quantbot Technologies LP now owns 4,272 shares of the investment management company's stock valued at $115,000 after buying an additional 1,474 shares during the last quarter. Finally, WFA of San Diego LLC acquired a new position in shares of Gladstone Capital in the second quarter valued at approximately $42,000. 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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