Insider Trading Report: Golub Capital BDC (GBDC)

David Golub, CEO of Golub Capital BDC (GBDC) recently picked up 10,000 shares. The buy increased his stake by 0.24 percent, and came to ta total valuation of just under $160,000.

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  • He was joined by Lawrence Golub, company Chairman, who also bought 10,000 shares, paying about the same amount. The two have been active and steady buyers since 2019, and there have been no insider sales over the past 3 years.

    Overall, company insiders own just under 7 percent of company shares.

    The asset management company has had flat operational performance in the past year, with revenue barley higher. However, shares have performed about as well as the S&P 500 index. The company also trades near its book value, and at about 10 times forward earnings.

    Action to take: As a BDC, this is a company that passes through its earnings to shareholders in the form of big dividends. Today’s buyers can lock in about 7.3 percent dividends, which may be variable with earnings, but likely won’t grow as fast as a lower-yielding dividend growth company.

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  • Besides the big dividend, shares have been in a steady uptrend, so a call option trade could leverage that movement. The November $15 calls are about $1 in-the-money and have a bid/ask spread of around $1.20, providing very low premium with some downside protection.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.