Gladstone Capital Corporation is a business development company specializing in lower middle market, growth capital, add on acquisitions, change of control, buy & build strategies, debt refinancing, debt investments in senior term loans, revolving loans, secured first and second lien term loans, senior subordinated loans, unitranche loans, junior subordinated loans, and mezzanine loans and equity investments in the form of common stock, preferred stock, limited liability company interests, or warrants. It operates as a business development company. The fund also makes private equity investments in acquisitions, buyouts and recapitalizations, and refinancing existing debts. It targets small and medium-sized companies in United States. It is industry agnostic and seeks to invest in companies engaged in the business services, light and specialty manufacturing, niche industrial products and services, specialty consumer products and services, energy services, transportation and logistics, healthcare and education services, specialty chemicals, media and communications and aerospace and defense. The fund seeks to invest between $7 million and $30 million in companies that have between $20 million and $150 million in sales and EBITDA between $3 million and $25 million. It prefers to acquire minority stakes. It seeks to exit its investments through strategic acquisitions by other industry participants or financial buyers, initial public offerings of common stock, or other capital market transactions.
Gladstone Capital Stock Performance
Shares of NASDAQ:GLAD traded down $0.07 during mid-day trading on Tuesday, hitting $10.51. The company had a trading volume of 191 shares, compared to its average volume of 141,969. The company has a current ratio of 0.04, a quick ratio of 0.04 and a debt-to-equity ratio of 0.26. Gladstone Capital has a 1 year low of $9.43 and a 1 year high of $12.78. The company has a market capitalization of $360.49 million, a price-to-earnings ratio of 7.50 and a beta of 1.28. The stock's 50-day moving average price is $10.51 and its 200-day moving average price is $11.14.
Gladstone Capital (NASDAQ:GLAD - Get Rating) last posted its earnings results on Wednesday, July 27th. The investment management company reported $0.20 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.20. The business had revenue of $13.78 million for the quarter, compared to analysts' expectations of $15.01 million. Gladstone Capital had a net margin of 77.23% and a return on equity of 9.88%. On average, sell-side analysts forecast that Gladstone Capital will post 0.93 earnings per share for the current year.
Gladstone Capital Dividend Announcement
The firm also recently announced a monthly dividend, which will be paid on Friday, September 30th. Investors of record on Thursday, September 22nd will be given a dividend of $0.0675 per share. This represents a $0.81 annualized dividend and a yield of 7.71%. The ex-dividend date is Wednesday, September 21st. Gladstone Capital's payout ratio is 57.45%.
Analyst Upgrades and Downgrades
Several equities research analysts recently weighed in on GLAD shares. StockNews.com lowered Gladstone Capital from a "hold" rating to a "sell" rating in a report on Friday, July 29th. Janney Montgomery Scott started coverage on shares of Gladstone Capital in a research note on Tuesday, July 12th. They issued a "neutral" rating for the company.