Gladstone Capital (NASDAQ:GLAD) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.

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. “

Several other equities research analysts have also commented on the stock. BidaskClub upgraded shares of Gladstone Capital from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 11th. National Securities lowered shares of Gladstone Capital from a “neutral” rating to a “sell” rating and reduced their price target for the company from $8.00 to $7.00 in a report on Tuesday, November 6th. Two research analysts have rated the stock with a sell rating, one has assigned a hold rating and two have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $9.00.

GLAD traded up $0.01 on Wednesday, reaching $8.62. 203,544 shares of the company traded hands, compared to its average volume of 119,439. Gladstone Capital has a one year low of $7.80 and a one year high of $9.92. The firm has a market capitalization of $253.98 million, a price-to-earnings ratio of 10.14 and a beta of 1.03. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.67 and a quick ratio of 3.67.

Gladstone Capital (NASDAQ:GLAD) last posted its quarterly 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). Gladstone Capital had a net margin of 41.00% and a return on equity of 9.83%. The business had revenue of $11.26 million during the quarter, compared to the consensus estimate of $12.00 million. On average, equities analysts anticipate that Gladstone Capital will post 0.87 earnings per share for the current fiscal year.

In other Gladstone Capital news, President Robert L. Marcotte purchased 10,000 shares of Gladstone Capital stock in a transaction dated Tuesday, November 20th. The stock was acquired at an average price of $8.71 per share, for a total transaction of $87,100.00. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 5.89% of the company’s stock.

Several large investors have recently bought and sold shares of GLAD. Advisors Asset Management Inc. raised its holdings in shares of Gladstone Capital by 42.8% in the 2nd quarter. Advisors Asset Management Inc. now owns 308,212 shares of the investment management company’s stock valued at $2,774,000 after purchasing an additional 92,447 shares in the last quarter. Millennium Management LLC bought a new stake in shares of Gladstone Capital in the 1st quarter valued at about $568,000. Koshinski Asset Management Inc. purchased a new position in shares of Gladstone Capital in the 3rd quarter worth approximately $256,000. Bank of Montreal Can grew its position in shares of Gladstone Capital by 6.1% in the 3rd quarter. Bank of Montreal Can now owns 260,000 shares of the investment management company’s stock worth $2,470,000 after buying an additional 15,000 shares during the last quarter. Finally, BlackRock Inc. grew its position in shares of Gladstone Capital by 13.1% in the 3rd quarter. BlackRock Inc. now owns 126,599 shares of the investment management company’s stock worth $1,203,000 after buying an additional 14,631 shares during the last quarter. Institutional investors and hedge funds own 11.97% of the company’s stock.

Gladstone Capital Company Profile

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.

Further Reading: Cost of Debt

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