Chicago Atlantic BDC, Inc. (NASDAQ:LIEN) Sees Significant Decline in Short Interest

Key Points

• Short interest dropped 15.7% in March to 9,762 shares (about 0.1% of shares), leaving a short-interest ratio of just 0.2 days based on average trading volume.
• Dividend announced: a $0.34 quarterly payout (annualized $1.36) yields 14.3%, though the dividend payout ratio is a high 170%, signaling potential sustainability concerns.
• Recent quarter: Chicago Atlantic BDC reported $0.36 EPS (in line with estimates) and revenue of $14.23 million (above the $13.41M estimate); analysts forecast ~0.76 EPS for the fiscal year.

Chicago Atlantic BDC, Inc. (NASDAQ:LIEN - Get Free Report) saw a large decrease in short interest during the month of March. As of March 13th, there was short interest totaling 9,762 shares, a decrease of 15.7% from the February 26th total of 11,580 shares. Based on an average trading volume of 39,081 shares, the short-interest ratio is presently 0.2 days. Approximately 0.1% of the shares of the stock are sold short.

Chicago Atlantic BDC Price Performance

LIEN opened at $9.50 on Monday. The firm has a market cap of $216.79 million, a PE ratio of 11.88 and a beta of 0.27. The business has a fifty day simple moving average of $10.13 and a 200-day simple moving average of $10.40. Chicago Atlantic BDC has a fifty-two week low of $9.50 and a fifty-two week high of $11.75.

Chicago Atlantic BDC (NASDAQ:LIEN - Get Free Report) last announced its earnings results on Thursday, March 19th. The company reported $0.36 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.36. Chicago Atlantic BDC had a return on equity of 5.88% and a net margin of 33.24%.The company had revenue of $14.23 million for the quarter, compared to analyst estimates of $13.41 million. On average, equities research analysts anticipate that Chicago Atlantic BDC will post 0.76 EPS for the current fiscal year.

Chicago Atlantic BDC Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 14th. Investors of record on Monday, March 30th will be paid a $0.34 dividend. The ex-dividend date of this dividend is Monday, March 30th. This represents a $1.36 dividend on an annualized basis and a yield of 14.3%. Chicago Atlantic BDC's dividend payout ratio (DPR) is currently 170.00%.

Institutional Trading of Chicago Atlantic BDC

A number of hedge funds have recently bought and sold shares of the company. Sowell Financial Services LLC acquired a new position in shares of Chicago Atlantic BDC in the fourth quarter worth about $4,940,000. Corient Private Wealth LLC acquired a new stake in shares of Chicago Atlantic BDC during the second quarter valued at approximately $2,784,000. Sage Mountain Advisors LLC lifted its position in shares of Chicago Atlantic BDC by 1,913.1% in the 3rd quarter. Sage Mountain Advisors LLC now owns 206,367 shares of the company's stock valued at $2,167,000 after acquiring an additional 196,116 shares in the last quarter. Black Maple Capital Management LP purchased a new stake in shares of Chicago Atlantic BDC in the 2nd quarter valued at approximately $1,901,000. Finally, LVM Capital Management Ltd. MI acquired a new position in Chicago Atlantic BDC in the 4th quarter worth approximately $1,666,000. 4.36% of the stock is owned by hedge funds and other institutional investors.

About Chicago Atlantic BDC

Chicago Atlantic BDC NASDAQ: LIEN is a closed-end management investment company organized as a business development company (BDC). It focuses on providing debt and equity financing solutions to U.S. middle-market companies that demonstrate strong growth potential. Through its public listing, the company offers investors exposure to a diversified portfolio of private credit and equity investments aimed at delivering attractive risk-adjusted returns.

The company's investment strategy centers on structuring customized credit facilities, including senior secured loans, unitranche loans, mezzanine debt and equity co-investments.

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