Kayne Anderson BDC (NYSE:KBDC) Reaches New 1-Year Low - Time to Sell?

Key Points

• KBDC shares fell to a new 52-week low of $13.04, below the stock’s 50-day and 200-day moving averages. Analysts have an average “Hold” rating and a consensus price target of $14.50, though several firms recently lowered their targets.
• The company exceeded quarterly EPS expectations, reporting $0.42 versus the $0.40 consensus estimate, but revenue of $19.27 million was well below analysts’ $51.86 million forecast.
• KBDC declared a quarterly dividend of $0.40 per share, or $1.60 annualized, implying a 12.2% yield; however, its dividend payout ratio is elevated at 146.79%.

Kayne Anderson BDC, Inc. (NYSE:KBDC - Get Free Report) shares reached a new 52-week low on Wednesday . The stock traded as low as $13.04 and last traded at $13.0460, with a volume of 65094 shares changing hands. The stock had previously closed at $13.19.

Wall Street Analyst Weigh In

KBDC has been the subject of a number of research reports. UBS Group reduced 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 research report on Tuesday, September 1st. Royal Bank Of Canada lowered 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 report on Thursday, August 13th. Wells Fargo & Company reaffirmed an "equal weight" rating and issued a $14.00 price target (down from $15.00) on shares of Kayne Anderson BDC in a report on Friday, June 12th. Finally, Zacks Research downgraded Kayne Anderson BDC from a "hold" rating to a "strong sell" rating in a research note on Tuesday, August 18th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Kayne Anderson BDC has an average rating of "Hold" and a consensus target price of $14.50.

Kayne Anderson BDC Trading Down 0.9%

The company has a current ratio of 1.25, a quick ratio of 1.25 and a debt-to-equity ratio of 1.16. The company has a market capitalization of $863.45 million, a PE ratio of 12.00 and a beta of 0.32. The stock has a fifty day moving average of $13.58 and a two-hundred day moving average of $13.99.

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

Kayne Anderson BDC Announces Dividend

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 12.2%. The ex-dividend date is Wednesday, September 30th. Kayne Anderson BDC's dividend payout ratio is currently 146.79%.

Institutional Investors Weigh In On Kayne Anderson BDC

A number of large investors have recently added to or reduced their stakes in the company. Koch Inc. purchased a new stake in shares of Kayne Anderson BDC during the second quarter worth about $185,887,000. Bank of America Corp DE increased its holdings in Kayne Anderson BDC by 180.1% during the 2nd quarter. Bank of America Corp DE now owns 4,596,731 shares of the company's stock valued at $70,146,000 after purchasing an additional 2,955,661 shares during the period. Pathstone Holdings LLC raised its position in Kayne Anderson BDC by 612.8% during the 3rd quarter. Pathstone Holdings LLC now owns 1,446,054 shares of the company's stock valued at $19,261,000 after purchasing an additional 1,243,181 shares during the last quarter. Van ECK Associates Corp bought a new position in Kayne Anderson BDC during the 4th quarter valued at approximately $11,804,000. Finally, UBS Group AG lifted its holdings in Kayne Anderson BDC by 265.0% in the 4th quarter. UBS Group AG now owns 576,812 shares of the company's stock worth $8,260,000 after buying an additional 418,789 shares during the period.

About Kayne Anderson BDC

Kayne Anderson BDC, Inc NYSE: KBDC is a closed-end, non-diversified management investment company structured as a business development company under the Investment Company Act of 1940. The firm focuses on providing bespoke financing solutions to U.S. middle-market companies, offering first-lien and second-lien secured loans, unitranche facilities, mezzanine debt and selected equity co-investments. KBDC targets businesses with EBITDA profiles generally ranging from $10 million to $100 million, aiming to generate attractive income and potential capital appreciation for shareholders.

The company's portfolio spans a variety of sectors, including healthcare, technology, energy services, consumer products and industrials.

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