Gladstone Capital’s (GLAD) Sell Rating Reiterated at National Securities
Gladstone Capital Co. (NASDAQ:GLAD)‘s stock had its “sell” rating restated by research analysts at National Securities in a research note issued to investors on Monday. They currently have a $8.00 target price on the investment management company’s stock. National Securities’ price objective suggests a potential downside of 20.48% from the company’s current price.
The analysts wrote, “• For fiscal 2Q17, GLAD posted NII/share of $0.21, in-line with both our own estimate and consensus estimates. We note, however, that this was the result of $0.06/share worth of fee waivers. We’d prefer to see the company cover the dividend absent fee waivers in the future.
• D/E finished 3/31/17 at 0.53x, well under leverage the company has operated at in the past although we suspect that given the aging of the credit cycle the company will try not to exceed 0.80x. The low leverage combined with a stock well above NAV/share should permit robust portfolio growth for Gladstone in both fiscal 2017 and fiscal 2018.
• NAV/share decreased very slightly Q/Q to $8.33 from $8.36 largely driven by unrealized depreciation likely pertaining to the new non-accrual which was marked with an unrealized loss of $2.2 million. We expect NAV/share to finish fiscal 2017 at $8.27 and fiscal 2018 at $8.30.
• We are revising our fiscal 2017 NII/share estimate to $0.84 from $0.86 and our fiscal 2018 NII/share estimate to $0.86 from $0.88.”
Several other research firms have also issued reports on GLAD. Hilliard Lyons lowered shares of Gladstone Capital from a “neutral” rating to an “underperform” rating in a research report on Friday, February 10th. DA Davidson reiterated a “buy” rating and set a $10.00 price objective on shares of Gladstone Capital in a research note on Wednesday, March 29th. Finally, TheStreet downgraded shares of Gladstone Capital from a “b” rating to a “c+” rating in a research note on Friday, February 17th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and one has given a buy rating to the company. The stock presently has an average rating of “Hold” and an average price target of $8.75.
Gladstone Capital (NASDAQ:GLAD) remained flat at $10.06 during mid-day trading on Monday. 159,491 shares of the stock were exchanged. Gladstone Capital has a one year low of $6.80 and a one year high of $10.12. The company has a market capitalization of $256.70 million, a PE ratio of 11.37 and a beta of 1.17. The company’s 50-day moving average is $9.49 and its 200-day moving average is $9.04.
Gladstone Capital (NASDAQ:GLAD) last released its quarterly earnings data on Wednesday, May 3rd. The investment management company reported $0.21 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.21. Gladstone Capital had a net margin of 53.78% and a return on equity of 10.15%. The company earned $8.79 million during the quarter, compared to analyst estimates of $9.78 million. Equities analysts forecast that Gladstone Capital will post $0.84 earnings per share for the current year.
The company also recently disclosed a monthly dividend, which will be paid on Wednesday, May 31st. Investors of record on Friday, May 19th will be issued a $0.07 dividend. The ex-dividend date is Wednesday, May 17th. This represents a $0.84 dividend on an annualized basis and a dividend yield of 8.35%. Gladstone Capital’s dividend payout ratio (DPR) is presently 87.50%.
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In other news, President Robert L. Marcotte acquired 16,000 shares of the company’s stock in a transaction that occurred on Tuesday, February 28th. The shares were acquired at an average price of $9.13 per share, with a total value of $146,080.00. Following the acquisition, the president now directly owns 336,663 shares in the company, valued at $3,073,733.19. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, President Robert L. Marcotte acquired 10,000 shares of the company’s stock in a transaction that occurred on Thursday, March 9th. The stock was purchased at an average cost of $8.96 per share, for a total transaction of $89,600.00. Following the acquisition, the president now owns 343,743 shares in the company, valued at $3,079,937.28. The disclosure for this purchase can be found here. 6.45% of the stock is owned by company insiders.
Several hedge funds have recently added to or reduced their stakes in GLAD. Ladenburg Thalmann Financial Services Inc. boosted its position in Gladstone Capital by 796.4% in the fourth quarter. Ladenburg Thalmann Financial Services Inc. now owns 11,931 shares of the investment management company’s stock valued at $112,000 after buying an additional 10,600 shares during the last quarter. TCI Wealth Advisors Inc. boosted its position in Gladstone Capital by 2.7% in the third quarter. TCI Wealth Advisors Inc. now owns 15,950 shares of the investment management company’s stock valued at $130,000 after buying an additional 416 shares during the last quarter. Eqis Capital Management Inc. bought a new position in Gladstone Capital during the first quarter valued at approximately $141,000. Winslow Evans & Crocker Inc. boosted its position in Gladstone Capital by 150.8% in the first quarter. Winslow Evans & Crocker Inc. now owns 15,300 shares of the investment management company’s stock valued at $145,000 after buying an additional 9,200 shares during the last quarter. Finally, Koshinski Asset Management Inc. boosted its position in Gladstone Capital by 12.8% in the first quarter. Koshinski Asset Management Inc. now owns 24,678 shares of the investment management company’s stock valued at $234,000 after buying an additional 2,807 shares during the last quarter. 8.80% of the stock is currently owned by institutional investors and hedge funds.
Gladstone Capital Company Profile
Gladstone Capital Corporation is a closed-end, non-diversified management investment company, operating as a business development company (BDC). The objectives of the Company are to achieve and grow current income by investing in debt securities of established businesses that it believes will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding 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 believes can grow over time to permit it to sell its equity investments for capital gains.
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