Gladstone Capital (GLAD) News & Sentiment

GLAD's current premium to NAV is unjustified due to weakening earnings, increased non-accruals, and poor dividend coverage, leading to a sell rating. Despite GLAD's attractive 7% dividend yield and monthly payouts, the dividend coverage is weak, risking potential cuts if portfolio conditions worsen. GLAD's portfolio is diversified but small, with significant exposure to floating rate investments. This increases the overall vulnerability and impact of underperforming borrowers.

Although the revenue and EPS for Gladstone Capital (GLAD) give a sense of how its business performed in the quarter ended December 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Gladstone Capital (GLAD) came out with quarterly earnings of $0.50 per share, missing the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.54 per share a year ago.

MCLEAN, VA / ACCESS Newswire / February 11, 2025 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") today announced earnings for its first quarter ended December 31, 2024. Please read the Company's Quarterly Report on Form 10-Q filed today with the U.S. Securities and Exchange Commission (the "SEC"), which is available on the SEC's website at www.sec.gov and the Investors section of the Company's website at www.GladstoneCapital.com.

MCLEAN, VA / ACCESSWIRE / January 14, 2025 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") announced today that its board of directors declared the following monthly cash distributions for January, February and March 2025 and also announced its plan to report earnings for its first fiscal quarter ended December 31, 2024. Cash Distributions: Common Stock: $0.165 per share of common stock for each of January, February and March 2025, payable per the table below.

Gladstone Capital focuses on providing alternative financing to US lower middle-market companies, with a portfolio heavily concentrated in debt investments. Despite recent interest rate cuts, GLAD's net investment income still covers its regular monthly dividend payments, though future cuts may challenge this coverage. GLAD typically trades at a premium to net asset value, aiding capital gathering, but economic and Fed-related uncertainties may lead to higher stock price volatility.

MCLEAN, VA / ACCESSWIRE / November 15, 2024 / Gladstone Capital Corporation (NASDAQ:GLAD) (the "Company") announced that Terry Lee Brubaker will be retiring as Chief Operating Officer of the Company effective December 2, 2024. Mr. Brubaker is also retiring as director and executive officer of Gladstone Management Corporation, the Company's investment adviser, and as a member of the board of managers and an executive officer of Gladstone Administration, LLC, the Company's administrator, also effective December 2, 2024.

I maintain a hold rating on Gladstone Capital due to a weaker distribution coverage, lack of non-accrual improvements, and premium price valuation. Gladstone's portfolio strategy focuses on senior secured debt, providing lower risk and stability, but the recent slowdown in new investments is concerning. GLAD stock's current dividend yield of 7.7% is attractive, but the potential for a dividend cut exists if interest rates continue to fall and negatively impact earnings.

Gladstone Capital (GLAD) came out with quarterly earnings of $0.50 per share, missing the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.56 per share a year ago.