Golub Capital BDC (NASDAQ:GBDC) Shares Gap Down on Disappointing Earnings

Shares of Golub Capital BDC, Inc. (NASDAQ:GBDC) gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $13.68, but opened at $12.96. Golub Capital BDC shares last traded at $13.1530, with a volume of 417,944 shares.

The investment management company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.36 by ($0.02). Golub Capital BDC had a net margin of 38.57% and a return on equity of 10.37%. The business had revenue of ($5.28) million for the quarter, compared to the consensus estimate of $201.71 million. During the same quarter in the previous year, the company earned $0.30 EPS.

Golub Capital BDC Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 29th. Shareholders of record on Monday, June 15th will be issued a $0.33 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a $1.32 annualized dividend and a yield of 10.0%. Golub Capital BDC’s dividend payout ratio is 105.60%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on GBDC. Capital One Financial set a $15.00 target price on Golub Capital BDC in a report on Thursday, January 15th. Wells Fargo & Company dropped their target price on Golub Capital BDC from $14.00 to $13.00 and set an “overweight” rating for the company in a report on Friday, February 6th. Weiss Ratings reissued a “hold (c)” rating on shares of Golub Capital BDC in a report on Friday, March 27th. Wall Street Zen cut Golub Capital BDC from a “hold” rating to a “sell” rating in a report on Sunday, April 19th. Finally, Royal Bank Of Canada began coverage on Golub Capital BDC in a report on Friday, April 17th. They issued an “outperform” rating and a $15.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Buy” and a consensus target price of $14.50.

Institutional Investors Weigh In On Golub Capital BDC

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Chicago Partners Investment Group LLC increased its holdings in Golub Capital BDC by 13.7% during the 1st quarter. Chicago Partners Investment Group LLC now owns 48,565 shares of the investment management company’s stock valued at $644,000 after purchasing an additional 5,858 shares in the last quarter. Global Assets Advisory LLC acquired a new stake in Golub Capital BDC during the 1st quarter valued at $102,000. Castle Wealth Management LLC boosted its position in Golub Capital BDC by 91.7% in the 1st quarter. Castle Wealth Management LLC now owns 31,826 shares of the investment management company’s stock valued at $403,000 after buying an additional 15,228 shares during the last quarter. Fifth Third Bancorp bought a new position in Golub Capital BDC in the 1st quarter valued at $68,000. Finally, Whipplewood Advisors LLC boosted its position in Golub Capital BDC by 6.7% in the 1st quarter. Whipplewood Advisors LLC now owns 84,040 shares of the investment management company’s stock valued at $1,064,000 after buying an additional 5,245 shares during the last quarter. 42.38% of the stock is owned by institutional investors and hedge funds.

Golub Capital BDC Price Performance

The stock has a market capitalization of $3.49 billion, a P/E ratio of 10.60 and a beta of 0.41. The company has a debt-to-equity ratio of 1.25, a quick ratio of 2.24 and a current ratio of 2.24. The stock has a 50-day simple moving average of $12.66 and a 200 day simple moving average of $13.29.

Golub Capital BDC Company Profile

Golub Capital BDC (NASDAQ: GBDC) is a publicly traded business development company specializing in providing debt and equity financing solutions to middle-market companies in the United States. Externally managed by Golub Capital LLC, the firm focuses on building a diversified portfolio of senior secured loans, unitranche facilities and second-lien debt instruments designed to support growth, acquisitions and recapitalizations. As a closed-end investment vehicle, GBDC offers investors direct exposure to private credit strategies within a regulated structure.

The company’s core business activities center on originating and managing bespoke financing arrangements for U.S.