Golub Capital BDC, Inc. (NASDAQ:GBDC) Given “Neutral” Rating at National Securities
Golub Capital BDC, Inc. (NASDAQ:GBDC)‘s stock had its “neutral” rating reissued by National Securities in a note issued to investors on Wednesday. They currently have a $19.00 price objective on the investment management company’s stock. National Securities’ price target suggests a potential downside of 1.61% from the company’s previous close.
The analysts wrote, “• 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.”
GBDC has been the subject of several other research reports. Zacks Investment Research downgraded Golub Capital BDC from a “buy” rating to a “hold” rating in a report on Thursday, May 11th. Raymond James Financial, Inc. restated 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. BidaskClub downgraded Golub Capital BDC from a “hold” rating to a “sell” rating in a research note on Friday, July 28th. Finally, Keefe, Bruyette & Woods restated a “hold” rating and issued a $19.50 price objective on shares of Golub Capital BDC in a research note on Tuesday, July 25th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and two have assigned a buy rating to the company’s stock. Golub Capital BDC presently has a consensus rating of “Hold” and an average price target of $19.60.
Shares of Golub Capital BDC (NASDAQ:GBDC) opened at 19.31 on Wednesday. Golub Capital BDC has a 12-month low of $17.34 and a 12-month high of $20.50. The stock has a 50 day moving average price of $19.38 and a 200 day moving average price of $19.49.
Golub Capital BDC (NASDAQ:GBDC) last announced its quarterly earnings results on Monday, August 7th. The investment management company reported $0.35 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.32 by $0.03. Golub Capital BDC had a return on equity of 8.00% and a net margin of 53.62%. The business had revenue of $35.40 million during the quarter, compared to the consensus estimate of $35.11 million. During the same quarter in the prior year, the company posted $0.35 earnings per share. Golub Capital BDC’s revenue was up 5.4% compared to the same quarter last year. On average, equities research analysts anticipate that Golub Capital BDC will post $1.25 earnings per share for the current year.
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Hedge funds and other institutional investors have recently made changes to their positions in the stock. Cambridge Investment Research Advisors Inc. increased its position in shares of 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 worth $218,000 after buying an additional 298 shares during the period. Massey Quick & Co. LLC increased its position in shares of Golub Capital BDC by 2.5% in the first quarter. Massey Quick & Co. LLC now owns 15,275 shares of the investment management company’s stock worth $304,000 after buying an additional 375 shares during the period. Parametric Portfolio Associates LLC increased its position in shares of Golub Capital BDC by 1.2% in the first quarter. Parametric Portfolio Associates LLC now owns 47,960 shares of the investment management company’s stock worth $953,000 after buying an additional 553 shares during the period. Pekin Singer Strauss Asset Management IL increased its position in shares of Golub Capital BDC by 3.6% in the first quarter. Pekin Singer Strauss Asset Management IL now owns 22,499 shares of the investment management company’s stock worth $447,000 after buying an additional 791 shares during the period. Finally, Russell Investments Group Ltd. increased its position in shares of Golub Capital BDC by 3.3% in the second quarter. Russell Investments Group Ltd. now owns 29,650 shares of the investment management company’s stock worth $567,000 after buying an additional 960 shares during the period. Hedge funds and other institutional investors own 45.36% of the company’s stock.
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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