Top Buys by Top Brass: Chairman Golub's $601.8K Bet on GBDC

A company's own top management tend to have the best inside view into the business, so when company officers make major buys, investors are wise to take notice. Presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by the ''top brass'' over the trailing six month period, one of which was a total of $601.8K invested across 3 purchases by Lawrence E. Golub, Chairman at Golub Capital BDC Incorporated (GBDC).

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Golub bets big on GBDC:
Purchased Insider Title Shares Price/Share Value
09/03/2014 Lawrence E. Golub Chairman 5,000 $17.82 $89,100.00
12/11/2014 Lawrence E. Golub Chairman 15,000 $17.19 $257,850.00
12/12/2014 Lawrence E. Golub Chairman 15,000 $16.99 $254,850.00

Golub's average cost works out to $17.19/share. In trading on Monday, bargain hunters could buy shares of Golub Capital BDC Incorporated ( GBDC) and achieve a cost basis lower than Golub, with shares changing hands as low as $17.10 per share. Shares of Golub Capital BDC Incorporated were changing hands at $17.25 at last check, trading up about 2% on Monday. The chart below shows the one year performance of GBDC shares, versus its 200 day moving average:

Golub Capital BDC Incorporated Chart

Looking at the chart above, GBDC's low point in its 52 week range is $15.57 per share, with $19.38 as the 52 week high point — that compares with a last trade of $17.25.

The current annualized dividend paid by Golub Capital BDC Incorporated is $1.28/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 12/16/2014. Below is a long-term dividend history chart for GBDC, which can be of good help in judging whether the most recent dividend with approx. 7.6% annualized yield is likely to continue.

GBDC+Dividend+History+Chart

According to the ETF Finder at ETF Channel, GBDC makes up 4.81% of the BDC Income ETF ( BIZD) which is trading up by about 0.1% on the day Monday.

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