Barings BDC (NYSE:BBDC) Shares Gap Down on Disappointing Earnings

Barings BDC, Inc. (NYSE:BBDC) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $8.70, but opened at $8.40. Barings BDC shares last traded at $8.55, with a volume of 196,237 shares trading hands.

The company reported $0.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.28 by ($0.03). The business had revenue of $64.44 million during the quarter, compared to analyst estimates of $67.78 million. Barings BDC had a return on equity of 10.94% and a net margin of 38.54%. The business’s revenue for the quarter was down 7.7% on a year-over-year basis. During the same period last year, the company earned $0.28 EPS.

Barings BDC Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 11th. Shareholders of record on Wednesday, June 4th will be given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 12.12%. Barings BDC’s dividend payout ratio (DPR) is 100.00%.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on BBDC shares. Keefe, Bruyette & Woods lowered their target price on shares of Barings BDC from $10.50 to $9.50 and set a “market perform” rating on the stock in a report on Tuesday, April 8th. Wells Fargo & Company decreased their price objective on shares of Barings BDC from $10.00 to $9.00 and set an “equal weight” rating on the stock in a research note on Monday, April 28th.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. grew its stake in shares of Barings BDC by 393.7% during the third quarter. JPMorgan Chase & Co. now owns 2,582 shares of the company’s stock valued at $25,000 after purchasing an additional 2,059 shares during the last quarter. Lee Danner & Bass Inc. bought a new position in Barings BDC in the 4th quarter valued at $25,000. Golden State Wealth Management LLC bought a new position in Barings BDC in the 1st quarter valued at $37,000. Ameriflex Group Inc. acquired a new stake in shares of Barings BDC in the 4th quarter valued at $80,000. Finally, Nomura Asset Management Co. Ltd. raised its position in shares of Barings BDC by 276.3% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 10,144 shares of the company’s stock worth $97,000 after acquiring an additional 7,448 shares during the last quarter. Institutional investors and hedge funds own 44.09% of the company’s stock.

Barings BDC Stock Performance

The firm has a fifty day moving average of $8.99 and a 200-day moving average of $9.57. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 0.37. The firm has a market cap of $904.41 million, a P/E ratio of 8.25 and a beta of 0.73.

About Barings BDC

Barings BDC, Inc is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments and senior secured private debt investments in private middle-market companies that operate across a wide range of industries.