Kayne Anderson BDC (NYSE:KBDC) Reaches New 52-Week Low - Here's What Happened

Key Points

• KBDC shares hit a new 52-week low, falling 3.1% intraday to $12.65 before last trading at $12.75, below the prior close of $13.07.
• Analyst sentiment is cautious: the stock has a consensus “Hold” rating and an average price target of $14.50, with several firms recently lowering their targets.
• The company reported quarterly EPS of $0.42, beating estimates by $0.02, and announced a $0.40 quarterly dividend, representing a 12.6% yield. Director James Robo also purchased 105,000 shares worth approximately $1.37 million.

Kayne Anderson BDC, Inc. (NYSE:KBDC - Get Free Report) shares hit a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $12.65 and last traded at $12.75, with a volume of 37753 shares traded. The stock had previously closed at $13.07.

Analyst Upgrades and Downgrades

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

Kayne Anderson BDC Trading Down 3.1%

The company has a market cap of $836.70 million, a price-to-earnings ratio of 11.62 and a beta of 0.32. The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 1.16. The business's fifty day simple moving average is $13.40 and its two-hundred day simple moving average is $13.91.

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

Kayne Anderson BDC Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Shareholders of record on Wednesday, September 30th will be issued a dividend of $0.40 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $1.60 annualized dividend and a dividend yield of 12.6%. Kayne Anderson BDC's dividend payout ratio (DPR) is presently 146.79%.

Insider Activity at Kayne Anderson BDC

In other news, Director James Robo bought 105,000 shares of Kayne Anderson BDC stock in a transaction dated Thursday, September 24th. The stock was acquired at an average cost of $13.05 per share, with a total value of $1,370,250.00. Following the acquisition, the director owned 619,961 shares of the company's stock, valued at approximately $8,090,491.05. This trade represents a 20.39% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders bought a total of 619,961 shares of company stock worth $8,089,782 in the last 90 days. 2.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE grew its holdings in shares of 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 buying an additional 143,854 shares during the last quarter. Renaissance Technologies LLC increased its position in Kayne Anderson BDC by 101.8% in the 1st quarter. Renaissance Technologies LLC now owns 145,322 shares of the company's stock valued at $1,994,000 after acquiring an additional 73,322 shares during the period. Closed End Fund Advisors Inc. purchased a new stake in Kayne Anderson BDC during the 4th quarter valued at approximately $1,048,000. Sei Investments Co. purchased a new stake in Kayne Anderson BDC during the 1st quarter valued at approximately $730,000. Finally, HB Wealth Management LLC raised its stake in Kayne Anderson BDC by 19.1% during the 2nd quarter. HB Wealth Management LLC now owns 280,189 shares of the company's stock valued at $3,791,000 after acquiring an additional 44,848 shares during the last quarter.

Kayne Anderson BDC Company Profile

Kayne Anderson BDC, Inc NYSE: KBDC is a business development company focused on providing financing to privately held middle-market companies. The company seeks to support businesses that may have limited access to traditional bank lending or public capital markets.

Its investment activities primarily include originating and investing in debt securities, such as senior secured loans, as well as other debt and equity investments. Through these investments, Kayne Anderson BDC aims to provide companies with capital for acquisitions, growth initiatives, refinancing, recapitalizations and other corporate purposes.

Kayne Anderson BDC is externally managed by an affiliate of Kayne Anderson, an investment management firm with experience across alternative asset classes.

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