Key Points
- Insider purchase: CFO Taylor Ritchie bought 1,500 Gladstone Investment shares at $16.20 each, increasing direct ownership by 52.58% to 4,353 shares. The transaction was made under a pre-arranged Rule 10b5-1 plan.
- Solid quarterly results and dividend: Gladstone Investment reported quarterly EPS of $0.26, beating estimates of $0.22, and revenue of $28.36 million versus expectations of $25.75 million. The company declared a monthly dividend of $0.08 per share, representing a 5.9% annualized yield.
- Positive analyst sentiment: The stock carries a consensus “Buy” rating with an average price target of $16.75, while several analysts recently raised their ratings or price targets.
Gladstone Investment Corporation (NASDAQ:GAIN - Get Free Report) CFO Taylor Ritchie bought 1,500 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were purchased at an average cost of $16.20 per share, with a total value of $24,300.00. Following the acquisition, the chief financial officer directly owned 4,353 shares of the company's stock, valued at approximately $70,518.60. This trade represents a 52.58% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Gladstone Investment Trading Up 0.6%
GAIN opened at $16.27 on Thursday. Gladstone Investment Corporation has a 12-month low of $13.11 and a 12-month high of $17.14. The firm has a 50 day moving average of $15.95 and a two-hundred day moving average of $15.29. The firm has a market capitalization of $647.87 million, a PE ratio of 3.89 and a beta of 0.77.
Gladstone Investment (NASDAQ:GAIN - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The investment management company reported $0.26 earnings per share for the quarter, topping analysts' consensus estimates of $0.22 by $0.04. Gladstone Investment had a net margin of 158.95% and a return on equity of 5.90%. The firm had revenue of $28.36 million for the quarter, compared to analyst estimates of $25.75 million. As a group, analysts predict that Gladstone Investment Corporation will post 1 EPS for the current fiscal year.
Gladstone Investment Dividend Announcement
The business also recently disclosed a monthly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be paid a dividend of $0.08 per share. The ex-dividend date is Monday, September 21st. This represents a c) dividend on an annualized basis and a dividend yield of 5.9%. Gladstone Investment's dividend payout ratio (DPR) is presently 22.97%.
Analysts Set New Price Targets
Several analysts recently commented on the company. B. Riley Financial raised Gladstone Investment from a "neutral" rating to a "buy" rating and raised their target price for the stock from $14.50 to $16.50 in a report on Thursday, May 14th. Weiss Ratings downgraded Gladstone Investment from a "buy (b+)" rating to a "buy (b)" rating in a report on Monday. Oppenheimer upped their price objective on Gladstone Investment from $15.00 to $17.00 and gave the stock an "outperform" rating in a research report on Thursday, May 14th. Zacks Research raised shares of Gladstone Investment from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 12th. Finally, Wall Street Zen upgraded shares of Gladstone Investment from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. One analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $16.75.
Get Our Latest Research Report on GAIN
Hedge Funds Weigh In On Gladstone Investment
Large investors have recently added to or reduced their stakes in the stock. UBS Group AG boosted its holdings 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 worth $6,701,000 after buying an additional 229,192 shares during the last quarter. Van ECK Associates Corp boosted its stake in shares of Gladstone Investment by 35.8% in the second quarter. Van ECK Associates Corp now owns 804,098 shares of the investment management company's stock worth $12,431,000 after acquiring an additional 212,170 shares during the last quarter. PFG Advisors increased its position in shares of Gladstone Investment by 206.0% during the fourth quarter. PFG Advisors now owns 305,248 shares of the investment management company's stock worth $4,264,000 after purchasing an additional 205,504 shares in the last quarter. Osaic Holdings Inc. raised its stake in Gladstone Investment by 395.5% in the 4th quarter. Osaic Holdings Inc. now owns 88,410 shares of the investment management company's stock valued at $1,235,000 after purchasing an additional 70,566 shares during the last quarter. Finally, Invesco Ltd. acquired a new stake in Gladstone Investment during the 2nd quarter worth $735,000. 11.85% of the stock is currently owned by institutional investors and hedge funds.
About Gladstone Investment
(
Get Free Report)
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.
Further Reading
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