Gladstone Capital Corp. (NASDAQ:GLAD) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Wednesday.

According to Zacks, “Gladstone Capital Corporation is a specialty finance company that invests in debt securities consisting primarily of senior term loans, senior subordinated loans, and junior subordinated loans in small and medium sized companies. The Company target small and medium sized private businesses that meet some or all of our criteria, including the potential for growth, adequate assets for loan collateral, experienced management teams with significant ownership interest in the business, adequate capitalization, profitable operations based on cash flow, substantial ownership by a buyout fund or a venture capital fund and potential opportunities for us to realize appreciation and gain liquidity in our equity position. “

Separately, National Securities reiterated a “neutral” rating and set a $7.00 target price on shares of Gladstone Capital Corp. in a report on Friday, August 5th. Five equities research analysts have rated the stock with a hold rating, The stock has an average rating of “Hold” and an average target price of $7.31.

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Shares of Gladstone Capital Corp. (NASDAQ:GLAD) traded down 0.49% during mid-day trading on Wednesday, reaching $8.18. The company had a trading volume of 55,148 shares. Gladstone Capital Corp. has a 12-month low of $4.71 and a 12-month high of $9.09. The firm’s 50 day moving average is $8.31 and its 200-day moving average is $7.72.

Gladstone Capital Corp. (NASDAQ:GLAD) last released its earnings results on Wednesday, August 3rd. The investment management company reported $0.21 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.21. Gladstone Capital Corp. had a positive return on equity of 10.58% and a negative net margin of 35.47%. Equities analysts anticipate that Gladstone Capital Corp. will post $0.84 EPS for the current fiscal year.

The firm also recently disclosed a monthly dividend, which was paid on Friday, September 30th. Shareholders of record on Wednesday, September 21st were paid a $0.07 dividend. The ex-dividend date of this dividend was Monday, September 19th. This represents a $0.84 annualized dividend and a yield of 10.27%. Gladstone Capital Corp.’s dividend payout ratio is -147.37%.

In other Gladstone Capital Corp. news, President Robert L. Marcotte acquired 8,000 shares of the company’s stock in a transaction on Thursday, August 11th. The shares were purchased at an average price of $8.35 per share, for a total transaction of $66,800.00. Following the completion of the purchase, the president now directly owns 286,758 shares of the company’s stock, valued at $2,394,429.30. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, COO Terry Lee Brubaker sold 20,876 shares of the company’s stock in a transaction that occurred on Monday, August 15th. The shares were sold at an average price of $8.39, for a total value of $175,149.64. Following the completion of the sale, the chief operating officer now owns 109,610 shares in the company, valued at approximately $919,627.90. The disclosure for this sale can be found here. 6.49% of the stock is owned by company insiders.

A number of hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada raised its stake in Gladstone Capital Corp. by 133.9% in the second quarter. Royal Bank of Canada now owns 23,412 shares of the investment management company’s stock valued at $170,000 after buying an additional 13,402 shares in the last quarter. Stifel Financial Corp purchased a new position in shares of Gladstone Capital Corp. during the second quarter worth $259,000. Van ECK Associates Corp raised its position in shares of Gladstone Capital Corp. by 12.9% in the second quarter. Van ECK Associates Corp now owns 108,111 shares of the investment management company’s stock worth $783,000 after buying an additional 12,335 shares during the period. Nuveen Fund Advisors LLC purchased a new position in shares of Gladstone Capital Corp. during the second quarter worth $385,000. Finally, Janney Montgomery Scott LLC raised its position in shares of Gladstone Capital Corp. by 126.7% in the second quarter. Janney Montgomery Scott LLC now owns 49,466 shares of the investment management company’s stock worth $358,000 after buying an additional 27,650 shares during the period. Hedge funds and other institutional investors own 9.34% of the company’s stock.

About Gladstone Capital Corp.

Gladstone Capital Corporation is an externally managed, closed-end and non-diversified management investment company. The Company’s investment objectives are to achieve and grow current income by investing in debt securities of established businesses that will provide earnings and cash flow to pay expenses, which make principal and interest payments on its indebtedness and make distributions to stockholders that grow over time, and to provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities of established businesses that it can grow over time to permit customers to sell its equity investments for capital gains.

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