Golub Capital BDC Inc (NASDAQ: GBDC)’s stock price has dropped by -0.19 in relation to previous closing price of 15.39. Nevertheless, the company has seen a gain of 1.45% in its stock price over the last five trading days. seekingalpha.com reported 2024-10-31 that Golub Capital BDC currently sports a 10% yield that is well-covered by their income. Golub Capital BDC remains a high-quality investment despite the slight increase in non-accruals during Q3 earnings. In this article, I discuss their latest earnings, and why the BDC remains a smart, attractive income play in the current market.
Is It Worth Investing in Golub Capital BDC Inc (NASDAQ: GBDC) Right Now?
Golub Capital BDC Inc (NASDAQ: GBDC) has a higher price-to-earnings ratio of 9.66x compared to its average ratio. GBDC has 36-month beta value of 0.57. Analysts have mixed views on the stock, with 0 analysts rating it as a “buy,” 1 as “overweight,” 5 as “hold,” and 0 as “sell.”
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The public float for GBDC is 258.55M, and currently, short sellers hold a 1.01% ratio of that float. The average trading volume of GBDC on November 08, 2024 was 1.40M shares.
GBDC’s Market Performance
GBDC’s stock has seen a 1.45% increase for the week, with a 1.92% rise in the past month and a 7.40% gain in the past quarter. The volatility ratio for the week is 1.37%, and the volatility levels for the past 30 days are at 1.14% for Golub Capital BDC Inc. The simple moving average for the past 20 days is 0.43% for GBDC’s stock, with a -1.20% simple moving average for the past 200 days.
Analysts’ Opinion of GBDC
Raymond James gave a rating of “Outperform” to GBDC, setting the target price at $15.50 in the report published on August 09th of the previous year.
GBDC Trading at 1.80% from the 50-Day Moving Average
After a stumble in the market that brought GBDC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.13% of loss for the given period.
Volatility was left at 1.14%, however, over the last 30 days, the volatility rate increased by 1.37%, as shares surge +1.99% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +2.47% upper at present.
During the last 5 trading sessions, GBDC rose by +1.45%, which changed the moving average for the period of 200-days by -0.26% in comparison to the 20-day moving average, which settled at $15.29. In addition, Golub Capital BDC Inc saw 3.59% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at GBDC starting from Golub Lawrence E, who purchase 20,000 shares at the price of $14.91 back on Sep 05 ’24. After this action, Golub Lawrence E now owns 1,998,880 shares of Golub Capital BDC Inc, valued at $298,200 using the latest closing price.
Golub Lawrence E, the Chairman of Golub Capital BDC Inc, purchase 20,000 shares at $14.78 during a trade that took place back on Sep 06 ’24, which means that Golub Lawrence E is holding 2,018,880 shares at $295,600 based on the most recent closing price.
Stock Fundamentals for GBDC
Current profitability levels for the company are sitting at:
- 0.68 for the present operating margin
- 0.95 for the gross margin
The net margin for Golub Capital BDC Inc stands at 0.55. The total capital return value is set at 0.04.
Based on Golub Capital BDC Inc (GBDC), the company’s capital structure generated 0.52 points at debt to capital in total, while cash flow to debt ratio is standing at 0.11. The debt to equity ratio resting at 1.06. The interest coverage ratio of the stock is 1.93.
Currently, EBITDA for the company is 292.77 million with net debt to EBITDA at 11.13. When we switch over and look at the enterprise to sales, we see a ratio of 15.61. The receivables turnover for the company is 5.58for trailing twelve months and the total asset turnover is 0.06.
Conclusion
To put it simply, Golub Capital BDC Inc (GBDC) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
