Strong Insider Buying Found in the Underlying Holdings of BIZD
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 19 2025
0mins
Should l Buy GBDC?
Source: NASDAQ.COM
Insider Buying Activity: The VanEck BDC Income ETF (BIZD) has 22.1% of its weighted holdings showing insider buying in the past six months, with notable purchases from directors at Golub Capital BDC Inc (GBDC) and Prospect Capital Corporation (PSEC).
ETF Holdings Details: GBDC constitutes 4.13% of BIZD's total assets, valued at approximately $63.8 million, while PSEC makes up about 2.28% with a value of around $35.2 million, both reflecting recent insider buying trends.
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Analyst Views on GBDC
Wall Street analysts forecast GBDC stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 12.710
Low
14.00
Averages
15.00
High
16.00
Current: 12.710
Low
14.00
Averages
15.00
High
16.00
About GBDC
Golub Capital BDC, Inc. is an externally managed, non-diversified closed-end management investment company. The Company's investment objective is to generate current income and capital appreciation by investing primarily in one stop and other senior secured loans of United States middle-market companies. It also selectively invests in second lien and subordinated (a loan that ranks senior only to a borrower’s equity securities and ranks junior to all of such borrower’s other indebtedness in priority of payment) loans of, and warrants and minority equity securities in, United States middle-market companies. It also invests in various sectors, which include software, healthcare providers and services, specialty retail, automobiles, diversified consumer services, insurance, healthcare technology, information technology (IT) services, commercial services and supplies, and others. The Company’s investment activities are managed by its investment adviser, GC Advisors LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rising Default Risks: UBS Group has warned that in an aggressive disruption scenario, default rates in U.S. private credit could rise to 13%, significantly higher than the projected stress for leveraged loans and high-yield bonds, estimated at 8% and 4%, respectively.
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See More
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Earnings Call Focus: The recent earnings call highlighted concerns and discussions surrounding the impact of AI on the software sector, referred to as the "software AI apocalypse."
See More
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- Financial Performance Overview: Golub Capital BDC reported an adjusted net investment income of $0.38 per share and an adjusted net income of $0.25 per share for Q1 2026, demonstrating relative stability despite ongoing industry challenges, indicating resilience in a tough environment.
- Dividend Policy Adjustment: The Board decided to reset the quarterly base dividend to $0.33 per share, approximately 9% of NAV per share, reflecting a cautious response to persistent market pressures while aiming to maintain capital flexibility for future challenges.
- Portfolio Dynamics: As of December 31, 2025, the investment portfolio's fair value decreased by 1.5% to $8.6 billion, with nonaccruals rising to 0.8%, highlighting increasing credit stress and a cautious outlook from management regarding future conditions.
- Technology Risk Awareness: Management emphasized the potential impact of AI on the software portfolio, maintaining an optimistic view on portfolio resilience while remaining vigilant about the risks posed by technological disruption, indicating strategic adjustments in risk identification and investment selection.
See More
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- Dividend Adjustment: Golub Capital BDC has declared a quarterly dividend of $0.33 per share, representing a 15.4% decrease from the previous $0.39, indicating financial pressure in the current economic environment that may affect investor confidence.
- Yield Situation: The forward yield stands at 10.11%, and while this remains attractive, the reduction in dividends may prompt investors to reassess their investment strategies, potentially impacting stock performance.
- Payment Schedule: The new dividend will be payable on March 30, with a record date of March 13 and an ex-dividend date also on March 13, making it crucial for investors to note these dates to ensure dividend eligibility.
- Market Reaction Outlook: Market analysts are cautious about Golub Capital's outlook, anticipating a potential further dividend cut of 25%-35%, which raises concerns about possible net asset value erosion that investors should be wary of.
See More
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- Revenue Decrease: The company's revenue for the quarter was $207.01 million, down 6.2% from $220.70 million last year, reflecting challenges in the market environment and a potential decline in customer demand, which could lead to slower future growth.
- Missed Analyst Expectations: Analysts had anticipated earnings of $0.38 per share, but the actual results fell short, highlighting the pressure on the company's profitability, which may impact its stock performance and market perception.
- Market Reaction: Given the earnings miss, investors may adopt a cautious stance towards Golub Capital BDC's future performance, potentially leading to increased stock price volatility and affecting the company's ability to raise capital in the market.
See More
Golub Capital BDC Reports Q1 Earnings
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- Earnings Stability: The earnings per share matched market expectations, indicating the company's continued profitability in the credit investment sector, even amid overall market uncertainty.
- Portfolio Performance: The stability of Golub Capital BDC's investment portfolio in Q1 suggests effective risk management under its diversified investment strategy, potentially laying the groundwork for future earnings growth.
- Market Reaction: Although the earnings report did not significantly exceed expectations, the market's neutral response to the company's stable financial performance reflects cautious optimism among investors regarding its future growth potential.
See More
