Zacks Investment Research lowered shares of Gladstone Capital (NASDAQ:GLAD) from a hold rating to a sell rating in a research report report published on Tuesday.
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. “
A number of other equities research analysts also recently issued reports on GLAD. ValuEngine raised shares of Gladstone Capital from a sell rating to a hold rating in a research report on Wednesday, December 5th. BidaskClub raised shares of Gladstone Capital from a hold rating to a buy rating in a research report on Thursday, November 15th. National Securities reaffirmed a sell rating and issued a $7.00 price objective on shares of Gladstone Capital in a research report on Friday, November 16th. Finally, TheStreet downgraded shares of Gladstone Capital from a b- rating to a c rating in a research report on Monday, December 10th. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and two have assigned a buy rating to the company’s stock. Gladstone Capital has a consensus rating of Hold and an average price target of $9.00.
Gladstone Capital (NASDAQ:GLAD) last posted its earnings results on Wednesday, November 14th. The investment management company reported $0.21 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.01). The business had revenue of $11.26 million for the quarter, compared to the consensus estimate of $12.00 million. Gladstone Capital had a return on equity of 9.83% and a net margin of 41.00%. On average, equities analysts predict that Gladstone Capital will post 0.86 earnings per share for the current fiscal year.
The company also recently disclosed a monthly dividend, which will be paid on Thursday, February 28th. Shareholders of record on Wednesday, February 20th will be given a $0.07 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 10.11%. The ex-dividend date of this dividend is Tuesday, February 19th. Gladstone Capital’s payout ratio is 98.82%.
In related news, President Robert L. Marcotte bought 10,000 shares of Gladstone Capital stock in a transaction dated Tuesday, November 20th. The stock was purchased at an average cost of $8.71 per share, with a total value of $87,100.00. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, President Robert L. Marcotte bought 12,000 shares of Gladstone Capital stock in a transaction dated Friday, December 7th. The shares were bought at an average cost of $8.33 per share, with a total value of $99,960.00. Following the completion of the transaction, the president now directly owns 460,037 shares in the company, valued at $3,832,108.21. The disclosure for this purchase can be found here. Insiders acquired a total of 22,582 shares of company stock valued at $192,077 over the last ninety days. 5.85% of the stock is currently owned by insiders.
Several institutional investors have recently added to or reduced their stakes in GLAD. Koshinski Asset Management Inc. purchased a new stake in shares of Gladstone Capital during the 3rd quarter valued at approximately $256,000. Novare Capital Management LLC lifted its stake in shares of Gladstone Capital by 37.0% during the 3rd quarter. Novare Capital Management LLC now owns 32,750 shares of the investment management company’s stock valued at $311,000 after buying an additional 8,850 shares in the last quarter. California Public Employees Retirement System lifted its stake in shares of Gladstone Capital by 18.5% during the 2nd quarter. California Public Employees Retirement System now owns 44,200 shares of the investment management company’s stock valued at $398,000 after buying an additional 6,900 shares in the last quarter. Legal & General Group Plc lifted its stake in shares of Gladstone Capital by 5.4% during the 2nd quarter. Legal & General Group Plc now owns 100,746 shares of the investment management company’s stock valued at $909,000 after buying an additional 5,203 shares in the last quarter. Finally, Millennium Management LLC lifted its stake in shares of Gladstone Capital by 69.9% during the 2nd quarter. Millennium Management LLC now owns 112,304 shares of the investment management company’s stock valued at $1,011,000 after buying an additional 46,213 shares in the last quarter. 11.87% of the stock is owned by hedge funds and other institutional investors.
About Gladstone Capital
Gladstone Capital Corporation is a private equity and a venture capital fund specializing in lower middle market, growth capital, add on acquisitions, debt investments in senior loans, second lien loans, senior subordinated loans, junior subordinated loans, and mezzanine loans and equity investments in the form of common stock, preferred stock, limited liability company interests, or warrants.
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