National Securities Reiterates “Neutral” Rating for Golub Capital BDC, Inc. (GBDC)

Golub Capital BDC, Inc. (NASDAQ:GBDC)‘s stock had its “neutral” rating reiterated by stock analysts at National Securities in a research report issued on Monday. They currently have a $19.00 target price on the investment management company’s stock. National Securities’ price target would indicate a potential downside of 2.21% from the company’s previous close.

The analysts wrote, “• GBDC offered 1.75 million shares at $19.30, representing a 22% premium to 3/31/17 NAV/share of $15.88. The company also included a 263,500 share green shoe which we anticipate will be exercised in full. In April, Golub successfully completed a 1.75 million share offering with the same 263,500 share overallotment option. Using this overallotment carrying over into the 6/30/17 quarter and the June raise overallotment carrying over into the 9/30/17 quarter, we expect total net proceeds from equity issuance of $36.8 million in fiscal 3Q17 and $4.8 million in fiscal 4Q17.

• Despite a portfolio in GBDC of over $1.7 billion at fair value and $18 billion in AUM across the total Golub platform, the company has exercised admirable conservatism in raising equity. When factoring in the consistently high and well-deserved (in our opinion) NAV/share premium GBDC trades at, this becomes all the more impressive as the equity is truly issued on a “just-in-time” basis with no lag on capital deployment and thus earnings. While we continue to expect more of the same in terms of very strong asset quality and increasing NAV/share, we do not anticipate earnings growth given relatively low returns on invested capital (ROIC) for the company’s investments.

• We are maintaining both our fiscal 2017 core NII/share estimate of $1.26 and our fiscal 2018 core NII/share estimate of $1.28.”

A number of other research analysts have also recently issued reports on the stock. Zacks Investment Research upgraded shares of Golub Capital BDC from a “hold” rating to a “buy” rating and set a $22.00 price objective for the company in a report on Wednesday, April 12th. Keefe, Bruyette & Woods restated a “hold” rating and set a $19.00 price objective on shares of Golub Capital BDC in a report on Tuesday, March 21st. Finally, Raymond James Financial, Inc. restated a “market perform” rating on shares of Golub Capital BDC in a report on Wednesday, May 10th. They noted that the move was a valuation call. Five equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. The company has an average rating of “Hold” and a consensus target price of $19.50.

Shares of Golub Capital BDC (NASDAQ GBDC) opened at 19.43 on Monday. Golub Capital BDC has a one year low of $17.08 and a one year high of $20.50. The company’s 50-day moving average is $20.12 and its 200-day moving average is $19.26.

Golub Capital BDC (NASDAQ:GBDC) last issued its quarterly earnings results on Thursday, May 4th. The investment management company reported $0.32 EPS for the quarter, hitting the consensus estimate of $0.32. Golub Capital BDC had a net margin of 55.30% and a return on equity of 7.67%. The company had revenue of $33.56 million during the quarter, compared to analysts’ expectations of $35.66 million. During the same quarter in the previous year, the company earned $0.33 EPS. Golub Capital BDC’s revenue was up 9.1% on a year-over-year basis. On average, analysts forecast that Golub Capital BDC will post $1.25 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 29th. Investors of record on Tuesday, June 6th will be issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a yield of 6.59%. The ex-dividend date of this dividend is Friday, June 2nd. Golub Capital BDC’s dividend payout ratio is currently 93.43%.

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A number of hedge funds and other institutional investors have recently modified their holdings of GBDC. Goldman Sachs Group Inc. boosted its position in shares of Golub Capital BDC by 0.4% in the first quarter. Goldman Sachs Group Inc. now owns 658,990 shares of the investment management company’s stock worth $13,101,000 after buying an additional 2,719 shares in the last quarter. IHT Wealth Management LLC boosted its position in shares of Golub Capital BDC by 22.7% in the first quarter. IHT Wealth Management LLC now owns 12,420 shares of the investment management company’s stock worth $246,000 after buying an additional 2,300 shares in the last quarter. HighTower Advisors LLC boosted its position in shares of Golub Capital BDC by 147.7% in the first quarter. HighTower Advisors LLC now owns 58,187 shares of the investment management company’s stock worth $1,157,000 after buying an additional 34,695 shares in the last quarter. Farmhouse Investment Management LLC purchased a new position in shares of Golub Capital BDC during the first quarter worth about $4,052,000. Finally, Clough Capital Partners L P boosted its position in shares of Golub Capital BDC by 7.4% in the first quarter. Clough Capital Partners L P now owns 965,266 shares of the investment management company’s stock worth $19,189,000 after buying an additional 66,800 shares in the last quarter. Hedge funds and other institutional investors own 45.93% 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.new TradingView.widget({ “height”: 400, “width”: 625, “symbol”: “NASDAQ:GBDC”, “interval”: “D”, “timezone”: “Etc/UTC”, “theme”: “White”, “style”: “1”, “locale”: “en”, “toolbar_bg”: “#f1f3f6”, “enable_publishing”: false, “hideideas”: true, “referral_id”: “2588”});

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