Barings BDC, Inc. (NYSE:BBDC) has been a point of interest among investors and industry experts alike since financial giant Commonwealth Equity Services LLC recently lessened its position in the company by 26.8% during the fourth quarter. According to the company’s latest SEC filing released on April 12th, Commonwealth Equity Services’ position now stands at a mere 72,361 shares after selling off 26,506 shares during the quarter. The institutional investor previously owned around 0.07% of Barings BDC with a total worth of $589,000.
However, it is good news that Director Thomas Okel invested in BBDC by purchasing 10,000 shares in March this year for an average price of $8.05 per share with a total value of $80,500. Mr. Okel now holds around 20,037 shares valued at approximately $161,297.85.
The situation was exacerbated when Barings BDC’s last quarterly earnings report showed sub-optimal performance results compared to analysts’ consensus estimates on Friday, May 5th. The firm reported earning per share (EPS) of only $0.25 cents for the quarter which didn’t meet securities analysts’ prediction by ($0.04) cents. From our analysis through available records on finances and management performance transparency over time; we can attest that they could have managed their operating expenditures more efficiently and tactfully than they have done so far considering how much their revenue declined by just a few dollars below what was predicted at almost $67 million from $67.45 million.
Mr Michael James O’Connor might have had some inkling or insight on something as he bought up to 25k more shares on Tuesday May 16th at an average share cost of around $7.43 with the purchase totaling an amount worth about $185k thereby filling us up with fresh hope despite the massive drop.
Notwithstanding this situation, equities analysts expect some improvement with predictions that Barings BDC’s earnings per share could increase to 1.13 over the next twelve months based on business activities and past performance from consolidated quarters records. So wise investors are patiently watching and hoping for recovery in the future while keeping their fingers crossed. It remains a challenge to invest wisely in these unstable economic times but diligent study and good advisory is key.
Barings BDC Inc Sees Changes in Positions as Multiple Hedge Funds and Institutional Investors Make Moves in the Market
Barings BDC, Inc. has recently seen changes to its positions as multiple hedge funds and institutional investors make moves in the market. Point72 Hong Kong Ltd acquired a new position in the company in the second quarter valued at $28,000, while Lake Point Wealth Management grew its stake in Barings BDC by a staggering 3,008.0% in the first quarter. Parallel Advisors LLC also grew its stake by 24,205.6% in the fourth quarter, and EWG Elevate Inc. acquired a new position in Barings BDC valued at $44,000 during the same period. Stonebridge Capital Advisors LLC grew its stake by 35.9% in the third quarter and now owns 5,576 shares of the company’s stock valued at $46,000 after buying an additional 1,474 shares.
As of Friday’s opening on NYSE:BBDC, Barings BDC opened at $7.84 and maintains a debt-to-equity ratio of 0.64 with a current ratio of 0.15. The firm’s 50-day moving average price is $7.60 while their two-hundred day moving average price is $8.28 and their one-year low stands at $6.96 with a high of $10.52 – giving them a market cap of $846.06 million and beta value of 0.70.
In regards to recent insider activity within Barings BDC; Director Thomas Okel purchased a total of 10,000 shares at an average price of $8.05 per share whilst Michael James O’connor purchased 25,000 shares at an average cost of $7.43 per share totaling to $185,750 – all within May this year.
Barings BDC announced that it will be issuing a quarterly dividend which will be paid out on Wednesday June 14th, with stockholders of Wednesday June 7th to receive a $0.25 dividend. The ex-dividend date for this will be on Tuesday, June 6th. These dividends give an annualized payout ratio of 454.55% and a yield of 12.76%.
Analysts have issued reports on BBDC shares giving the recommendation from Wells Fargo & Company as “overweight” with Barings BDC given a price target of $9.75, reduced by Oppenheimer from $10 to $9 in their report which downgraded the shares from “outperform” to “market perform.” In totality, Barings BDC receives an average rating of “Moderate buy” and given a consensus price target of $9.94 according to Bloomberg.com data.
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