CHARLOTTE, NC – Michael Freno, an officer of the adviser for Barings BDC, Inc. (NYSE:BBDC), has purchased 27,500 shares of the company's common stock, according to a recent SEC filing. The transaction, dated May 9, 2024, involved shares acquired at a price of $9.727 per share, totaling approximately $267,492.
The purchase increases Freno's direct ownership in the company to 71,145 shares, which includes additional shares acquired through a dividend reinvestment plan. This detail was noted in a footnote attached to the filing, indicating that these shares were not previously reported since the prior filing under Rule 16a-11 of the Securities Exchange Act of 1934.
Investors may view such transactions as a sign of confidence by company insiders in the firm's future prospects. Insider buying can often be perceived as a positive indicator, as it may suggest that those with the most intimate knowledge of the company expect the stock to perform well.
Barings BDC, Inc., headquartered in Charlotte, North Carolina, is a business development company that focuses on providing customized financing solutions to lower middle market and middle market companies. The company has a history of strategic investments aimed at driving shareholder value.
The reported transaction was signed off by Bridget Orlando, as attorney-in-fact, on May 10, 2024. The filing provides transparency into the trading activities of the company's insiders, offering investors additional data points when evaluating their investment decisions.
InvestingPro Insights
Following the recent insider purchase by Michael Freno, an officer of the adviser for Barings BDC, Inc. (NYSE:BBDC), a deeper dive into the company's financials and market performance reveals some key insights. According to InvestingPro data, Barings BDC has a market capitalization of approximately $1.03 billion and a price-to-earnings (P/E) ratio of 7.79, which may indicate that the stock is undervalued compared to industry peers. The company has experienced significant revenue growth over the last twelve months as of Q1 2024, with a reported increase of 20.29%, underlining its strong performance in the market.
One of the notable InvestingPro Tips for Barings BDC is its commendable dividend track record. The company has raised its dividend for four consecutive years and has maintained dividend payments for 18 consecutive years. This consistency is a testament to its commitment to returning value to shareholders, which is further emphasized by the substantial dividend yield of 10.75%. Additionally, Barings BDC's liquid assets exceed its short-term obligations, reflecting a healthy balance sheet and financial stability.
Investors interested in further analysis on Barings BDC, Inc. might find additional value in the numerous InvestingPro Tips available. For instance, the company is trading near its 52-week high and has been profitable over the last twelve months. To explore more exclusive insights and tips, visit https://www.investing.com/pro/BBDC and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 additional InvestingPro Tips listed for Barings BDC, Inc. that could provide investors with a more comprehensive understanding of the company's outlook and potential investment opportunities.
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