Barings BDC (NYSE:BBDC) Hits New 1-Year Low - Should You Sell?

Barings BDC, Inc. (NYSE:BBDC) has reached a new low, trading at $8.95 before settling at $9.33 during Friday's trading session. This marks a 52-week low for the stock, whose previous closing price was $9.36. The trading volume was notable, with 1,010,948 shares exchanged.

Barings BDC Sees a Slight Decline

The company has a market capitalization of $980.83 million and a price-to-earnings (P/E) ratio of 8.95. Its beta stands at 0.66, indicating lower volatility compared to the broader market. In terms of recent trading trends, Barings BDC's 50-day and 200-day moving averages are $9.94 and $9.85, respectively. Financial ratios reflect a current ratio and quick ratio of 0.14, along with a debt-to-equity ratio of 0.37.

On February 20, Barings BDC released its latest earnings report which showed an earnings per share (EPS) of $0.28, falling short of the consensus estimate of $0.29 by $0.01. The company's return on equity was reported at 10.94%, with a net margin of 38.54%. Revenue totaled $70.63 million, exceeding the expected $69.35 million. Analysts project that Barings BDC will report an EPS of 1.13 for the current fiscal year.

Dividend Announcement from Barings BDC

The company recently declared a quarterly dividend, which was distributed to investors on March 12. Shareholders on record as of March 5 received a $0.26 per share dividend, and the ex-dividend date was the same day. This leads to an annualized dividend of $1.04, delivering a yield of 11.18%. It is worth noting that Barings BDC maintains a 100% payout ratio.

Changes in Institutional Holdings

Several institutional investors have made adjustments to their positions in Barings BDC lately. Notably, JPMorgan Chase & Co. increased its holdings by 393.7% in the third quarter, bringing its total ownership to 2,582 shares valued at around $25,000 after acquiring 2,059 more shares. Other investors such as Lee Danner & Bass Inc., Nomura Asset Management, and Ameriflex Group have also acquired new stakes in the company, resulting in institutional ownership of approximately 44.09% of Barings BDC stock.

Overview of Barings BDC

Barings BDC, Inc is an externally managed investment company publicly traded as a business development company under the Investment Company Act of 1940. Its primary investment focus is on senior secured loans, first lien debt, and subordinated debt in private middle-market companies across various sectors.

Time to Evaluate Your Investment?

As Barings BDC has recently hit a 1-year low, investors might be questioning whether it is wise to hold or sell their shares. It is important to thoroughly analyze your investment options and consider alternative opportunities. MarketBeat has highlighted several stocks recommended by top analysts that may provide better growth potential than Barings BDC. Investors should conduct their research and consider their financial goals before making any decisions.

Stocks, Investment, Dividends