Lawrence E. Golub buys Golub Capital BDC shares worth $593,800 By Investing.com

Golub Capital BDC, Inc. (NASDAQ:GBDC) has seen significant insider trading activity as Chairman Lawrence E. Golub purchased shares of the company in recent transactions. On September 5 and 6, 2024, Mr. Golub acquired a total of 40,000 shares of Golub Capital BDC, Inc., valued at approximately $593,800. These purchases were made at weighted average prices ranging from $14.78 to $14.91 per share.

Investors and market watchers often look to insider buying as a signal of confidence in the company’s prospects. The transactions by Mr. Golub, who is both a director and officer of the company, may be interpreted as such a signal. Following these acquisitions, Mr. Golub’s direct and indirect holdings in the company have increased significantly, reinforcing his stake and alignment with shareholder interests.

The shares were purchased through multiple transactions, and full details on the number of shares bought at each price point within the ranges can be provided upon request. It is worth noting that the shares acquired on September 5 were bought at prices between $14.86 and $14.96, while the shares acquired on September 6 were purchased at prices from $14.70 to $14.97.

These transactions reflect Mr. Golub’s control and ownership of various entities through which the shares are owned. According to the footnotes in the SEC filing, Mr. Golub is considered to have investment power over the shares owned by GGP Class B-P LLC and Golub Onshore GP, LLC. Additionally, shares reported by Whitehall Capital Investors VI, LLC are held for the benefit of Mr. Golub’s family trust.

Golub Capital BDC, Inc., headquartered in New York, is a business development company that primarily invests in middle-market companies. With the recent insider purchases by the Chairman, investors may want to keep an eye on the company’s performance and any further insider trading activity.

“In other recent news, Golub Capital BDC, Inc. has reported a series of significant financial developments. The company has expanded its senior secured revolving credit facility from approximately $1.49 billion to $1.82 billion, a move facilitated through an agreement with JPMorgan Chase (NYSE:) Bank, N.A. This strategic decision has extended the maturity date of the credit facility to August 6, 2029, enhancing Golub Capital’s financial flexibility.

In addition, the company has reported mixed results for the fiscal quarter ended June 30, 2024. They successfully completed a second affiliate merger in June, which positively impacted the net asset value (NAV) and reduced the incentive fee rate. However, the company faced significant write-downs due to negative outcomes in two credits, despite an increase in origination volume and new investment commitments.

The adjusted net investment income (NII) per share was $0.48 and adjusted earnings per share stood at $0.31. NAV per share increased to $15.32, and the company declared regular and special distributions, resulting in an annualized dividend yield of 11.5%. These are recent developments for Golub Capital BDC, Inc., which is prepared to navigate expected market headwinds.”

InvestingPro Insights

Golub Capital BDC, Inc. (NASDAQ:GBDC) has not only been a focus for insider trading but also presents interesting fundamentals that investors may consider. According to InvestingPro data, Golub Capital has a market capitalization of $3.91 billion and a P/E ratio that stands at 9.36, suggesting that the stock could be undervalued relative to earnings.

From a performance standpoint, the company reported a robust revenue growth of 19.1% over the last twelve months as of Q3 2024. This growth is complemented by a strong dividend yield of 12.8%, as of the last recorded date, which is a significant return for shareholders and aligns with the InvestingPro Tip that Golub Capital pays a substantial dividend to its investors. Moreover, the company has upheld this commitment to dividend payments for 15 consecutive years, demonstrating a consistent return to shareholders over time.

Another InvestingPro Tip highlights that Golub Capital’s stock generally trades with low price volatility, which could be an attractive feature for investors seeking stability in their portfolio. This is further supported by the fact that the company’s liquid assets exceed its short-term obligations, indicating a solid financial position. For those interested in further insights and tips, InvestingPro offers additional analysis and metrics on Golub Capital BDC, Inc. at InvestingPro, including 6 more InvestingPro Tips that can help investors make informed decisions.

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