Kayne Anderson BDC (NYSE:KBDC) Reaches New 1-Year Low - Here's Why

Key Points

• Kayne Anderson BDC shares hit a new 52-week low of $12.42, below the prior close of $12.70. The stock’s consensus analyst rating is “Hold,” with an average price target of $14.50 after several firms reduced their targets.
• The company reported quarterly EPS of $0.42, exceeding the $0.40 analyst estimate, while revenue totaled $19.27 million. Analysts expect full-year EPS of approximately $1.61.
• Kayne Anderson BDC declared a quarterly dividend of $0.40 per share, equivalent to a 12.9% annualized yield, although its payout ratio is elevated at 146.79%. Director James Robo also purchased 146,755 shares, increasing his position by 23.67%.

Kayne Anderson BDC, Inc. (NYSE:KBDC - Get Free Report) reached a new 52-week low during trading on Wednesday. The company traded as low as $12.42 and last traded at $12.4250, with a volume of 46762 shares trading hands. The stock had previously closed at $12.70.

Analyst Ratings Changes

Several research analysts have recently weighed in on KBDC shares. Zacks Research lowered shares of Kayne Anderson BDC from a "hold" rating to a "strong sell" rating in a report on Tuesday, August 18th. UBS Group lowered their target price on shares of Kayne Anderson BDC from $15.00 to $13.50 and set a "neutral" rating for the company in a report on Tuesday, September 1st. Wells Fargo & Company reaffirmed an "equal weight" rating and set a $14.00 price target (down from $15.00) on shares of Kayne Anderson BDC in a research report on Friday, June 12th. Finally, Royal Bank Of Canada cut their price target on shares of Kayne Anderson BDC from $16.00 to $15.00 and set an "outperform" rating on the stock in a research note on Thursday, August 13th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Kayne Anderson BDC presently has a consensus rating of "Hold" and a consensus target price of $14.50.

Kayne Anderson BDC Stock Performance

The stock has a 50-day simple moving average of $13.31 and a 200-day simple moving average of $13.87. 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 stock has a market cap of $821.34 million, a PE ratio of 11.39 and a beta of 0.34.

Kayne Anderson BDC (NYSE:KBDC - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The company reported $0.42 EPS for the quarter, topping analysts' consensus estimates of $0.40 by $0.02. The company had revenue of $19.27 million for the quarter, compared to the consensus estimate of $51.86 million. Kayne Anderson BDC had a return on equity of 10.63% and a net margin of 31.54%. Equities analysts predict that Kayne Anderson BDC, Inc. will post 1.61 earnings per share for the current fiscal year.

Kayne Anderson BDC Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 16th. Investors of record on Wednesday, September 30th will be issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 12.9%. The ex-dividend date of this dividend is Wednesday, September 30th. Kayne Anderson BDC's dividend payout ratio (DPR) is presently 146.79%.

Insider Transactions at Kayne Anderson BDC

In other news, Director James Robo acquired 146,755 shares of the business'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 acquisition, the director directly owned 766,716 shares of the company's stock, valued at $9,990,309.48. This represents a 23.67% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Over the last quarter, insiders have acquired 766,716 shares of company stock worth $10,002,000. 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 modified their holdings of KBDC. Bank of America Corp DE lifted its stake in Kayne Anderson BDC by 2.7% during the first quarter. Bank of America Corp DE now owns 5,565,223 shares of the company's stock worth $76,355,000 after purchasing an additional 143,854 shares during the last quarter. Renaissance Technologies LLC increased its stake in Kayne Anderson BDC by 101.8% during the first quarter. Renaissance Technologies LLC now owns 145,322 shares of the company's stock valued at $1,994,000 after purchasing an additional 73,322 shares during the last quarter. Sei Investments Co. bought a new stake in Kayne Anderson BDC during the first quarter valued at $730,000. HB Wealth Management LLC raised its holdings in shares of Kayne Anderson BDC by 19.1% during the second quarter. HB Wealth Management LLC now owns 280,189 shares of the company's stock worth $3,791,000 after purchasing an additional 44,848 shares during the period. Finally, Requisite Capital Management LLC raised its holdings in shares of Kayne Anderson BDC by 6.5% during the second quarter. Requisite Capital Management LLC now owns 645,130 shares of the company's stock worth $8,987,000 after purchasing an additional 39,385 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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