Golub Capital BDC Receives Buy Rating from StockNews.com

The investment community has taken note as StockNews.com has elevated the shares of Golub Capital BDC (NASDAQ:GBDC) to a 'buy' status. This upgrade from a previous 'hold' rating was released in a research report on Friday morning, signaling increased confidence in the business development company's stock.

Analyst Insights on Golub Capital BDC

Alongside StockNews.com's upgrade, other analysts have also weighed in on Golub Capital BDC's financial outlook. Notably, Raymond James increased their price target for the company's shares from $15.50 to $16.00, assigning an 'outperform' rating. Similarly, Keefe, Bruyette & Woods raised their price target from $16.50 to $17.00 while maintaining an 'outperform' rating. Out of the analysts covering the stock, one maintains a 'hold' rating, while four others recommend a 'buy'. MarketBeat's consensus portrays a 'Moderate Buy' stance for Golub Capital BDC, with an average target price of $16.00.

Market Performance and Dividends

On the trading front, Golub Capital BDC's shares opened at $14.63. The company bears a market capitalization of $2.48 billion and exhibits a price-to-earnings (P/E) ratio of 9.63. Stability is suggested by its low beta of 0.60. GBDC's recent performance shows a 50-day and a 200-day moving average price holding at $14.63 and $14.16 respectively. Share prices have fluctuated between a 52-week low of $12.27 and a high of $15.38.

The company has not only shown strong stock performance but has also declared a quarterly dividend of $0.37 per share, payable on December 29th to shareholders on record as of December 8th. With an annualized basis yield of 10.12% and a payout ratio sitting at 97.37%, this dividend is a notable return to investors.

Financials and Earnings

As for its earnings report, Golub Capital BDC outdid expectations by earning $0.50 per share in contrast to the predicted $0.48, showcasing a net margin of 42.88% and an impressive return on equity of 11.72%. The reported revenue amounted to $164.54 million, surpassing the forecasted $158.26 million. Analysts are projecting that Golub Capital BDC will deliver an earnings per share total of 1.94 for the current fiscal year.

Institutional Investors' Moves

Institutional investors have recently adjusted their holdings in Golub Capital BDC, with some increasing their stakes and others reducing them. Noteworthy movements include a 19.9% position increase by Raymond James Financial Services Advisors Inc. and an 18.4% boost by Blair William & Co. IL. Moors & Cabot, Mackenzie Financial Corp, and First Trust Advisors LP also made significant share purchases, all contributing to the 40.82% of GBDC stock owned by institutional investors and hedge funds.

About Golub Capital BDC

Golub Capital BDC, Inc, operates as a business development company, focusing on debt and minority equity investments in middle-market companies, typically backed by private equity firms. As a closed-end non-diversified management investment company, it serves as a crucial funding source for businesses in various stages of growth.

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