Golub Capital BDC, Inc. Sees Significant Increase in Short Interest

Golub Capital BDC, Inc. (NASDAQ:GBDC) experienced a notable rise in short interest in December. As of December 15th, the short interest climbed to 2,690,000 shares, reflecting a 14.0% increase from the November 30th figure of 2,360,000 shares. Given the average daily trading volume of 1,290,000 shares, the current short-interest ratio stands at 2.1 days.

Analysts Predict Future Growth

Various brokerages have recently provided updates on Golub Capital BDC. StockNews.com raised its rating on GBDC shares from "sell" to "hold" in a research note dated November 29th. Wells Fargo & Company let go of its target price for the stock, reducing it from $15.50 to $15.00 while maintaining an "equal weight" rating in a report on November 21st. Currently, three research analysts recommend holding the stock while three others advocate for buying it. MarketBeat reports an overall consensus rating of "Moderate Buy" for Golub Capital BDC, with an average price target set at $16.40.

Stock Performance

On Wednesday, the stock for NASDAQ:GBDC increased by $0.04, reaching a price of $15.16. During this trading session, 1,162,759 shares exchanged hands, which is slightly below its average volume of 1,186,567. The company's fifty-day simple moving average stands at $15.29, and the two-hundred-day simple moving average is at $15.22. With a market capitalization of $4.01 billion, the company shows a price-to-earnings ratio of 10.75, and its beta is 0.54. Over the past year, Golub Capital BDC's share price has ranged from as low as $14.05 to as high as $17.72. The firm holds a current ratio of 4.73, and its quick ratio also measures 4.73, with a debt-to-equity ratio of 1.15.

Dividend Announcement

Recently, Golub Capital BDC announced a quarterly dividend, which was disbursed on December 27th. Investors on record as of December 9th were entitled to a dividend of $0.39. The ex-dividend date was also December 9th. Annually, this represents a total dividend of $1.56, equating to a yield of 10.29%. However, Golub Capital BDC's current dividend payout ratio (DPR) stands at 110.64%, indicating a high percentage of earnings paid out as dividends.

Institutional Investors' Activities

In recent months, institutional investors have either increased or decreased their stakes in Golub Capital BDC. Notably, Partners Group Holding AG enhanced its holdings by 48.2% in the third quarter, now owning 1,994,663 shares valued at approximately $30,139,000 after acquiring an additional 648,855 shares in the last quarter. Likewise, Northeast Financial Consultants Inc saw a whopping 151.8% increase in their ownership during the second quarter, bringing their total to 2,104,195 shares valued at around $33,057,000 after adding 1,268,442 shares. Other institutional moves included BBR Partners LLC purchasing a new stake valued at about $655,000 and Barclays PLC raising its holdings by 45.5% to own 190,132 shares worth approximately $2,873,000. Approximately 42.38% of Golub Capital BDC's stock is now held by hedge funds and additional institutional investors.

About Golub Capital BDC

Golub Capital BDC, Inc. (GBDC) functions as a business development company, acting as an externally managed closed-end non-diversified management investment entity. The company is primarily focused on making debt and minority equity investments in middle-market firms, most of which are backed by private equity investors.

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