Kayne Anderson BDC (NYSE:KBDC) Stock Price Breaks Above Fifty Day Moving Average Following Analyst Downgrade

Key Points

• Shares rose above the 50-day moving average, trading at $12.93 versus the average of $12.86, after Zacks Research upgraded KBDC from strong sell to hold. Analysts’ consensus rating is hold, with an average price target of $13.75.
• Quarterly results beat expectations: Kayne Anderson BDC reported EPS of $0.46 versus the $0.39 consensus and revenue of $58.96 million versus estimates of $57.35 million.
• Insiders bought 766,716 shares worth about $10 million over the last quarter, including director James Robo’s purchase of 340,000 shares. The company also declared a $0.40 quarterly dividend, a 12.4% indicated yield.

Kayne Anderson BDC, Inc. (NYSE:KBDC - Get Free Report) shares crossed above its 50 day moving average during trading on Tuesday after Zacks Research upgraded the stock from a strong sell rating to a hold rating. The stock has a 50 day moving average of $12.86 and traded as high as $12.97. Kayne Anderson BDC shares last traded at $12.93, with a volume of 347,193 shares.

KBDC has been the topic of a number of other reports. UBS Group reduced their price objective 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. Royal Bank Of Canada dropped their target price on shares of 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. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $13.75.

Insiders Place Their Bets

In related news, Director James Robo bought 340,000 shares of Kayne Anderson BDC stock in a transaction on Wednesday, September 16th. The shares were purchased at an average price of $13.04 per share, for a total transaction of $4,433,600.00. Following the completion of the acquisition, the director owned 400,000 shares in the company, valued at approximately $5,216,000. This represents a 566.67% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders bought a total of 766,716 shares of company stock valued at $10,002,000 over the last quarter. Corporate insiders own 2.90% of the company's stock.

Key Kayne Anderson BDC News

Here are the key news stories impacting Kayne Anderson BDC this week:

• Positive Sentiment: Keefe, Bruyette & Woods lowered its price target to $14.50 from $15.00 but maintained an “outperform” rating, leaving its target above the recent share price. Keefe, Bruyette & Woods analyst update
• Positive Sentiment: A summary of KBDC’s earnings call highlighted income strength. The company also recently beat quarterly estimates, reporting $0.46 per share versus the $0.39 consensus and revenue of $58.96 million versus expectations of $57.35 million. Earnings call highlights
• Neutral Sentiment: Wells Fargo cut its target to $13 from $14 and maintained an “equal weight” rating, indicating a more cautious view despite a target near the recent share price. Wells Fargo price target update
• Negative Sentiment: UBS lowered its target to $12.50 from $13.50 and kept a “neutral” rating; the new target is below the recent share price, signaling limited upside in its view. UBS price target update

Institutional Trading of Kayne Anderson BDC

A number of hedge funds have recently modified their holdings of the company. Russell Investments Group Ltd. grew its holdings in Kayne Anderson BDC by 2.9% during the third quarter. Russell Investments Group Ltd. now owns 819,478 shares of the company's stock valued at $10,293,000 after purchasing an additional 23,154 shares during the period. TT Capital Management LLC raised its holdings in Kayne Anderson BDC by 30.5% in the third quarter. TT Capital Management LLC now owns 26,100 shares of the company's stock worth $328,000 after purchasing an additional 6,100 shares during the period. Columbus Macro LLC raised its holdings in Kayne Anderson BDC by 6.1% in the third quarter. Columbus Macro LLC now owns 647,693 shares of the company's stock worth $8,135,000 after purchasing an additional 36,957 shares during the period. Confluence Investment Management LLC raised its holdings in Kayne Anderson BDC by 2.8% in the third quarter. Confluence Investment Management LLC now owns 76,898 shares of the company's stock worth $966,000 after purchasing an additional 2,077 shares during the period. Finally, Squarepoint Ops LLC raised its holdings in Kayne Anderson BDC by 126.1% in the second quarter. Squarepoint Ops LLC now owns 22,705 shares of the company's stock worth $307,000 after purchasing an additional 12,663 shares during the period.

Kayne Anderson BDC Trading Up 0.7%

The business's 50-day moving average price is $12.86 and its two-hundred day moving average price is $13.73. The company has a market capitalization of $850.92 million, a P/E ratio of 15.39 and a beta of 0.32. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.12 and a quick ratio of 1.25.

Kayne Anderson BDC (NYSE:KBDC - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The company reported $0.46 EPS for the quarter, beating analysts' consensus estimates of $0.39 by $0.07. The business had revenue of $58.96 million during the quarter, compared to analysts' expectations of $57.35 million. Kayne Anderson BDC had a net margin of 24.17% and a return on equity of 10.90%. As a group, analysts forecast that Kayne Anderson BDC, Inc. will post 1.61 EPS for the current fiscal year.

Kayne Anderson BDC Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, January 19th. Shareholders of record on Thursday, December 31st will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 12.4%. The ex-dividend date is Thursday, December 31st. Kayne Anderson BDC's dividend payout ratio is 190.48%.

About Kayne Anderson BDC

Kayne Anderson BDC, Inc. is a business development company that provides financing to middle-market businesses, primarily in the United States. Its investment strategy focuses on privately held companies and aims to generate income and long-term capital appreciation through private credit investments. The company primarily makes senior secured loans, including first-lien and unitranche loans, and may also invest in other forms of debt and equity. Its investment adviser is KA Credit Advisors, an affiliate of Kayne Anderson Capital Advisors, which manages the company's investment activities.

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