National Securities reissued their neutral rating on shares of Golub Capital BDC, Inc. (NASDAQ:GBDC) in a research report sent to investors on Wednesday morning. National Securities currently has a $19.00 price objective on the investment management company’s stock.
“• Golub posted core NII/share of $0.32, matching our estimate and covering the dividend. While we anticipate strong portfolio growth the balance of fiscal 2017 and through fiscal 2018, we do not expect earnings to follow suit. Despite having a low cost of capital, Golub’s returns on invested capital are too low for the company to experience meaningful earnings growth, in our opinion.
• Credit quality remains excellent, with non-accruals as a percentage of par finished 6/30/17 at $10.3 million or 0.6% of the portfolio. This level as a percentage of cost is also the average quarterly non-accrual rate since fiscal 1Q13. Despite the very robust portfolio growth of Golub, the company has not sacrificed asset quality at all. With a portfolio at fair value over $1.8 billion the average investment size is a little over $8 million, with Golub utilizing its exemptive relief to mitigate concentration risk and provide certainty of close to sponsors.
• We expect steady increases in NAV/share to generate respectable and consistent economic returns.
• We are adjusting our fiscal 2017 NII/share estimate to $1.27 from $1.26 and are maintaining our fiscal 2018 NII/share estimate of $1.28.,” the firm’s analyst commented.
A number of other research firms have also weighed in on GBDC. Raymond James Financial, Inc. reiterated a market perform rating on shares of Golub Capital BDC in a research note on Wednesday, May 10th. They noted that the move was a valuation call. Zacks Investment Research lowered shares of Golub Capital BDC from a buy rating to a hold rating in a research note on Thursday, May 11th. Keefe, Bruyette & Woods reiterated a hold rating and issued a $19.50 price objective on shares of Golub Capital BDC in a research note on Tuesday, July 25th. Finally, BidaskClub lowered shares of Golub Capital BDC from a hold rating to a sell rating in a research note on Friday, July 28th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and one has assigned a buy rating to the stock. The company presently has an average rating of Hold and a consensus target price of $19.60.
Shares of Golub Capital BDC (NASDAQ GBDC) traded down 0.05% during trading on Wednesday, hitting $19.04. 112,172 shares of the company’s stock were exchanged. Golub Capital BDC has a one year low of $17.34 and a one year high of $20.50. The firm has a 50-day moving average price of $19.38 and a 200-day moving average price of $19.51.
Golub Capital BDC (NASDAQ:GBDC) last issued its quarterly earnings results on Monday, August 7th. The investment management company reported $0.35 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.32 by $0.03. The business had revenue of $35.40 million for the quarter, compared to analyst estimates of $35.11 million. Golub Capital BDC had a net margin of 53.62% and a return on equity of 7.86%. Golub Capital BDC’s revenue for the quarter was up 5.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.35 EPS. On average, equities analysts anticipate that Golub Capital BDC will post $1.25 earnings per share for the current year.
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The company also recently declared a quarterly dividend, which will be paid on Friday, September 29th. Investors of record on Wednesday, September 6th will be issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a yield of 6.72%. The ex-dividend date of this dividend is Friday, September 1st. Golub Capital BDC’s dividend payout ratio (DPR) is presently 96.24%.
A number of hedge funds have recently made changes to their positions in GBDC. Global X Management Co. LLC increased its position in Golub Capital BDC by 50.4% in the first quarter. Global X Management Co. LLC now owns 6,728 shares of the investment management company’s stock valued at $134,000 after buying an additional 2,254 shares during the last quarter. JPMorgan Chase & Co. increased its position in Golub Capital BDC by 219.3% in the second quarter. JPMorgan Chase & Co. now owns 11,042 shares of the investment management company’s stock valued at $210,000 after buying an additional 7,584 shares during the last quarter. Cambridge Investment Research Advisors Inc. increased its position in Golub Capital BDC by 2.7% in the second quarter. Cambridge Investment Research Advisors Inc. now owns 11,395 shares of the investment management company’s stock valued at $218,000 after buying an additional 298 shares during the last quarter. IHT Wealth Management LLC increased its position in Golub Capital BDC by 22.7% in the first quarter. IHT Wealth Management LLC now owns 12,420 shares of the investment management company’s stock valued at $246,000 after buying an additional 2,300 shares during the last quarter. Finally, Pinebridge Investments L.P. increased its position in Golub Capital BDC by 0.6% in the second quarter. Pinebridge Investments L.P. now owns 14,582 shares of the investment management company’s stock valued at $279,000 after buying an additional 80 shares during the last quarter. 45.36% of the stock is currently owned by hedge funds and other institutional investors.
Golub Capital BDC Company Profile
Golub Capital BDC, Inc is an externally managed, non-diversified, closed-end, management investment company. The Company’s investment objective is to generate current income and capital appreciation by investing primarily in senior secured and one stop loans of the United States middle-market companies.
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