Kayne Anderson BDC (NYSE:KBDC) Hits New 12-Month Low - Here's Why

Key Points

• Kayne Anderson BDC shares fell to a new 52-week low, trading as low as $12.26 and below both their 50-day and 200-day moving averages.
• Analysts have lowered price targets, resulting in a consensus “Hold” rating and an average target of $14.50, despite the company beating quarterly earnings and revenue estimates.
• The company maintains a high dividend payout, issuing $0.40 per share quarterly for a 13.1% annualized yield, while director James Robo significantly increased his holdings through a 146,755-share purchase.

Kayne Anderson BDC, Inc. (NYSE:KBDC - Get Free Report)'s share price reached a new 52-week low on Monday. The company traded as low as $12.26 and last traded at $12.2140, with a volume of 15,240 shares trading hands. The stock had previously closed at $12.43.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the stock. UBS Group lowered their price target on shares of Kayne Anderson BDC from $15.00 to $13.50 and set a "neutral" rating on the stock in a report on Tuesday, September 1st. Royal Bank Of Canada decreased their target price on Kayne Anderson BDC from $16.00 to $15.00 and set an "outperform" rating for the company in a research report on Thursday, August 13th. Finally, Zacks Research upgraded Kayne Anderson BDC from a "strong sell" rating to a "hold" rating in a research note on Tuesday, October 13th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $14.50.

Kayne Anderson BDC Stock Performance

The firm has a market capitalization of $805.29 million, a PE ratio of 11.17 and a beta of 0.34. The company has a debt-to-equity ratio of 1.16, a current ratio of 1.25 and a quick ratio of 1.25. The company's fifty day simple moving average is $13.12 and its 200 day simple moving average is $13.79.

Kayne Anderson BDC (NYSE:KBDC - Get Free Report) last posted its earnings results on Monday, August 10th. The company reported $0.42 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.02. The firm had revenue of $55.70 million during the quarter, compared to the consensus estimate of $51.86 million. Kayne Anderson BDC had a net margin of 31.54% and a return on equity of 10.63%. As a group, equities research analysts expect that Kayne Anderson BDC, Inc. will post 1.61 EPS for the current fiscal year.

Kayne Anderson BDC Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, October 16th. Shareholders of record on Wednesday, September 30th were issued a dividend of $0.40 per share. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $1.60 dividend on an annualized basis and a yield of 13.1%. Kayne Anderson BDC's payout ratio is presently 146.79%.

Insider Activity

In related news, Director James Robo bought 146,755 shares of the company's stock in a transaction on Monday, September 28th. The shares were purchased at an average price of $13.03 per share, for a total transaction of $1,912,217.65. Following the completion of the transaction, the director directly owned 766,716 shares in the company, valued at approximately $9,990,309.48. The trade was a 23.67% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders acquired a total of 766,716 shares of company stock worth $10,002,000 in the last quarter. Corporate insiders own 2.90% of the company's stock.

Institutional Trading of Kayne Anderson BDC

A number of hedge funds and other institutional investors have recently made changes to their positions in KBDC. Baird Financial Group Inc. bought a new position in Kayne Anderson BDC in the 2nd quarter worth about $147,000. Sovereign Financial Group Inc. purchased a new position in Kayne Anderson BDC during the 1st quarter valued at about $155,000. MQS Management LLC bought a new stake in shares of Kayne Anderson BDC during the first quarter valued at about $204,000. Squarepoint Ops LLC increased its holdings in Kayne Anderson BDC by 126.1% during the 2nd quarter. Squarepoint Ops LLC now owns 22,705 shares of the company's stock worth $307,000 after acquiring an additional 12,663 shares during the period. Finally, TT Capital Management LLC increased its holdings in Kayne Anderson BDC by 30.5% during the 3rd quarter. TT Capital Management LLC now owns 26,100 shares of the company's stock worth $328,000 after acquiring an additional 6,100 shares during the period.

Kayne Anderson BDC Company Profile

Kayne Anderson BDC, Inc is a business development company that provides financing to privately held U.S. middle-market businesses. The company seeks to generate income and long-term capital appreciation by investing in the debt and equity securities of companies that may have limited access to traditional financing.

Its investment activities primarily include providing secured loans and other forms of credit, along with potential investments in subordinated debt, preferred equity and common equity.

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