Barings BDC (NYSE:BBDC) Shares Gap Down Following Weak Earnings

Barings BDC, Inc. (NYSE:BBDCGet Free Report) shares gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $8.70, but opened at $8.40. Barings BDC shares last traded at $8.55, with a volume of 196,237 shares changing hands.

The company reported $0.25 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.03). The firm had revenue of $64.44 million for the quarter, compared to the consensus estimate of $67.78 million. Barings BDC had a return on equity of 10.94% and a net margin of 38.54%. The company’s revenue was down 7.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.28 EPS.

Barings BDC Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 11th. Stockholders of record on Wednesday, June 4th will be issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 12.12%. Barings BDC’s dividend payout ratio is currently 100.00%.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on BBDC. Keefe, Bruyette & Woods lowered their price target on shares of Barings BDC from $10.50 to $9.50 and set a “market perform” rating on the stock in a research report on Tuesday, April 8th. Wells Fargo & Company lowered their target price on shares of Barings BDC from $10.00 to $9.00 and set an “equal weight” rating on the stock in a report on Monday, April 28th.

Read Our Latest Analysis on BBDC

Institutional Trading of Barings BDC

Several large investors have recently modified their holdings of the stock. Wells Fargo & Company MN grew its stake in Barings BDC by 85.4% during the fourth quarter. Wells Fargo & Company MN now owns 705,628 shares of the company’s stock worth $6,753,000 after buying an additional 324,945 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in shares of Barings BDC during the 4th quarter worth approximately $8,891,000. Icon Advisers Inc. Co. bought a new position in Barings BDC in the fourth quarter valued at approximately $2,577,000. Steward Partners Investment Advisory LLC raised its position in Barings BDC by 4.1% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 39,478 shares of the company’s stock valued at $378,000 after purchasing an additional 1,565 shares in the last quarter. Finally, Truist Financial Corp bought a new stake in Barings BDC during the fourth quarter worth $112,000. 44.09% of the stock is owned by institutional investors and hedge funds.

Barings BDC Stock Down 1.4 %

The firm has a 50 day simple moving average of $8.99 and a two-hundred day simple moving average of $9.57. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 0.37. The stock has a market capitalization of $904.41 million, a P/E ratio of 8.25 and a beta of 0.73.

Barings BDC Company Profile

(Get Free Report)

Barings BDC, Inc is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments and senior secured private debt investments in private middle-market companies that operate across a wide range of industries.

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