Gladstone Investment (NASDAQ:GAIN) Releases Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Gladstone Investment (NASDAQ:GAIN) released its earnings results on Tuesday. The investment management company reported $0.21 EPS for the quarter, missing analysts’ consensus estimates of $0.24 by ($0.03), Zacks reports. Gladstone Investment had a return on equity of 7.12% and a net margin of 94.99%.

Gladstone Investment Stock Down 0.8%

Shares of Gladstone Investment stock traded down $0.11 on Tuesday, reaching $13.74. The company’s stock had a trading volume of 247,432 shares, compared to its average volume of 179,688. The company has a market capitalization of $544.79 million, a P/E ratio of 5.50 and a beta of 0.84. The stock has a 50-day moving average price of $13.91 and a 200-day moving average price of $13.95. Gladstone Investment has a 52-week low of $11.42 and a 52-week high of $15.34.

Gladstone Investment Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd will be issued a $0.08 dividend. This represents a c) annualized dividend and a yield of 7.0%. The ex-dividend date of this dividend is Monday, March 23rd. Gladstone Investment’s dividend payout ratio (DPR) is presently 38.40%.

Institutional Investors Weigh In On Gladstone Investment

Several institutional investors and hedge funds have recently added to or reduced their stakes in GAIN. CANADA LIFE ASSURANCE Co raised its position in Gladstone Investment by 29.9% during the third quarter. CANADA LIFE ASSURANCE Co now owns 48,371 shares of the investment management company’s stock worth $666,000 after acquiring an additional 11,133 shares during the period. Verition Fund Management LLC purchased a new stake in shares of Gladstone Investment during the third quarter worth about $153,000. Bank of America Corp DE increased its stake in shares of Gladstone Investment by 272.1% during the third quarter. Bank of America Corp DE now owns 8,946 shares of the investment management company’s stock worth $124,000 after purchasing an additional 6,542 shares in the last quarter. Raymond James Financial Inc. raised its position in shares of Gladstone Investment by 7.6% during the 3rd quarter. Raymond James Financial Inc. now owns 43,953 shares of the investment management company’s stock worth $607,000 after purchasing an additional 3,096 shares during the last quarter. Finally, UBS Group AG lifted its stake in Gladstone Investment by 89.6% in the 3rd quarter. UBS Group AG now owns 484,848 shares of the investment management company’s stock valued at $6,701,000 after buying an additional 229,192 shares in the last quarter. Hedge funds and other institutional investors own 11.85% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have commented on GAIN. Weiss Ratings restated a “buy (b)” rating on shares of Gladstone Investment in a research note on Monday, December 22nd. Wall Street Zen lowered Gladstone Investment from a “hold” rating to a “sell” rating in a research note on Saturday, November 8th. Finally, Zacks Research downgraded Gladstone Investment from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 11th. One analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold”.

About Gladstone Investment

Gladstone Investment (NASDAQ: GAIN) is a publicly traded business development company (BDC) that focuses on providing debt and equity financing to U.S. middle-market companies. As an externally managed closed-end fund, Gladstone Investment seeks to generate current income and capital appreciation for its shareholders by originating senior secured debt, subordinated debt and equity investments. The firm typically targets established businesses with revenues between $10 million and $150 million, across a range of industry sectors including business services, health care, industrials and specialty manufacturing.

The company’s investment strategy centers on deploying capital through first-lien and second-lien term loans, mezzanine debt and equity co-investments, often including warrants or other equity kickers.