Golub Capital BDC, Inc. (NASDAQ:GBDC) Short Interest Up 15.0% in August

by · The Markets Daily

Golub Capital BDC, Inc. (NASDAQ:GBDC – Get Free Report) was the target of a large growth in short interest in the month of August. As of August 31st, there was short interest totalling 2,450,000 shares, a growth of 15.0% from the August 15th total of 2,130,000 shares. Based on an average daily volume of 1,570,000 shares, the days-to-cover ratio is presently 1.6 days.

Golub Capital BDC Price Performance

Shares of NASDAQ:GBDC traded down $0.19 during trading hours on Tuesday, hitting $14.86. 1,419,907 shares of the company’s stock traded hands, compared to its average volume of 1,142,991. The company has a debt-to-equity ratio of 1.06, a quick ratio of 5.01 and a current ratio of 5.01. The company’s fifty day simple moving average is $15.06 and its two-hundred day simple moving average is $15.84. Golub Capital BDC has a 52 week low of $13.95 and a 52 week high of $17.72. The company has a market cap of $2.55 billion, a price-to-earnings ratio of 7.40 and a beta of 0.53.

Golub Capital BDC (NASDAQ:GBDC – Get Free Report) last posted its quarterly earnings results on Monday, August 5th. The investment management company reported $0.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by ($0.01). Golub Capital BDC had a return on equity of 11.99% and a net margin of 42.14%. The business had revenue of $171.27 million during the quarter, compared to analyst estimates of $205.24 million. During the same quarter last year, the firm posted $0.44 EPS. As a group, equities analysts anticipate that Golub Capital BDC will post 1.92 EPS for the current fiscal year.

Golub Capital BDC Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, September 27th. Stockholders of record on Friday, August 30th will be given a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 10.50%. The ex-dividend date of this dividend is Friday, August 30th. Golub Capital BDC’s dividend payout ratio (DPR) is presently 76.85%.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on GBDC. Wells Fargo & Company lowered their price target on Golub Capital BDC from $15.50 to $15.00 and set an “equal weight” rating on the stock in a report on Wednesday, August 7th. Oppenheimer reissued an “outperform” rating and set a $17.00 target price on shares of Golub Capital BDC in a research note on Wednesday, August 7th. StockNews.com lowered shares of Golub Capital BDC from a “hold” rating to a “sell” rating in a research note on Thursday, September 5th. Finally, Keefe, Bruyette & Woods lowered their price objective on shares of Golub Capital BDC from $17.50 to $16.50 and set an “outperform” rating on the stock in a research note on Wednesday, August 7th. One analyst has rated the stock with a sell rating, two have assigned a hold rating and three have assigned a buy rating to the company. According to MarketBeat.com, Golub Capital BDC currently has a consensus rating of “Hold” and an average target price of $16.40.

Check Out Our Latest Analysis on GBDC

Insider Activity at Golub Capital BDC

In related news, Director Anita J. Rival bought 26,000 shares of the company’s stock in a transaction on Thursday, August 8th. The shares were purchased at an average cost of $14.40 per share, with a total value of $374,400.00. Following the completion of the transaction, the director now directly owns 95,000 shares of the company’s stock, valued at $1,368,000. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other Golub Capital BDC news, Chairman Lawrence E. Golub acquired 20,000 shares of Golub Capital BDC stock in a transaction dated Thursday, September 5th. The stock was acquired at an average cost of $14.91 per share, for a total transaction of $298,200.00. Following the completion of the transaction, the chairman now owns 1,998,880 shares in the company, valued at approximately $29,803,300.80. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Anita J. Rival bought 26,000 shares of the stock in a transaction that occurred on Thursday, August 8th. The stock was acquired at an average price of $14.40 per share, for a total transaction of $374,400.00. Following the completion of the transaction, the director now owns 95,000 shares in the company, valued at $1,368,000. The disclosure for this purchase can be found here. Insiders purchased 146,000 shares of company stock worth $2,159,400 in the last 90 days. 2.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Golub Capital BDC

A number of hedge funds and other institutional investors have recently modified their holdings of GBDC. Future Financial Wealth Managment LLC purchased a new stake in Golub Capital BDC during the first quarter valued at about $38,000. Cove Street Capital LLC acquired a new stake in shares of Golub Capital BDC during the second quarter valued at approximately $39,000. Nomura Asset Management Co. Ltd. lifted its position in shares of Golub Capital BDC by 77.1% in the 4th quarter. Nomura Asset Management Co. Ltd. now owns 3,463 shares of the investment management company’s stock valued at $52,000 after acquiring an additional 1,508 shares in the last quarter. Quarry LP acquired a new position in Golub Capital BDC in the 2nd quarter worth approximately $61,000. Finally, Brown Brothers Harriman & Co. purchased a new position in Golub Capital BDC during the 2nd quarter worth approximately $71,000. Institutional investors and hedge funds own 42.38% of the company’s stock.

About Golub Capital BDC

(Get Free Report)

Golub Capital BDC, Inc (GBDC) is a business development company and operates as an externally managed closed-end non-diversified management investment company. It invests in debt and minority equity investments in middle-market companies that are, in most cases, sponsored by private equity investors.

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