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

Key Points

• Short interest fell sharply: Chicago Atlantic BDC’s short interest dropped 31.7% to 79,289 shares as of July 15, representing 0.4% of shares outstanding and 1.1 days to cover.
• Analyst sentiment is neutral: Zacks Research downgraded the stock from “strong buy” to “hold,” while the overall analyst consensus remains “Hold.”
• Strong results and high dividend yield: The company reported quarterly EPS of $0.44, exceeding the $0.36 consensus estimate, and paid a $0.34 quarterly dividend, equivalent to a 14.6% annualized yield.

Chicago Atlantic BDC, Inc. (NASDAQ:LIEN - Get Free Report) was the recipient of a significant decrease in short interest in the month of July. As of July 15th, there was short interest totaling 79,289 shares, a decrease of 31.7% from the June 30th total of 116,091 shares. Based on an average daily trading volume, of 74,335 shares, the days-to-cover ratio is currently 1.1 days. Currently, 0.4% of the company's shares are sold short.

Analyst Upgrades and Downgrades

Separately, Zacks Research cut Chicago Atlantic BDC from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. One analyst has rated the stock with a Hold rating, Based on data from MarketBeat, Chicago Atlantic BDC has a consensus rating of "Hold".

Institutional Investors Weigh In On Chicago Atlantic BDC

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Venturi Wealth Management LLC purchased a new stake in shares of Chicago Atlantic BDC in the 1st quarter worth $375,000. Corient Private Wealth LLC increased its stake in shares of Chicago Atlantic BDC by 9.9% during the fourth quarter. Corient Private Wealth LLC now owns 382,865 shares of the company's stock valued at $3,955,000 after buying an additional 34,423 shares during the period. Triumph Capital Management purchased a new position in shares of Chicago Atlantic BDC during the fourth quarter valued at $32,000. Closed End Fund Advisors Inc. bought a new stake in shares of Chicago Atlantic BDC in the fourth quarter valued at about $131,000. Finally, Northwestern Mutual Wealth Management Co. bought a new stake in shares of Chicago Atlantic BDC in the fourth quarter valued at about $63,000. 4.36% of the stock is owned by institutional investors.

Chicago Atlantic BDC Price Performance

Shares of LIEN opened at $9.34 on Friday. The firm has a market capitalization of $213.15 million, a price-to-earnings ratio of 6.23 and a beta of 0.27. Chicago Atlantic BDC has a 1-year low of $8.92 and a 1-year high of $11.44. The company has a 50-day moving average of $9.86 and a 200 day moving average of $9.87.

Chicago Atlantic BDC (NASDAQ:LIEN - Get Free Report) last issued its earnings results on Thursday, May 14th. The company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.36 by $0.08. Chicago Atlantic BDC had a net margin of 57.88% and a return on equity of 11.67%. The business had revenue of $16.70 million for the quarter, compared to analyst estimates of $14.31 million. On average, equities analysts anticipate that Chicago Atlantic BDC will post 1.64 earnings per share for the current fiscal year.

Chicago Atlantic BDC Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Investors of record on Friday, June 26th were paid a $0.34 dividend. The ex-dividend date of this dividend was Friday, June 26th. This represents a $1.36 annualized dividend and a yield of 14.6%. Chicago Atlantic BDC's dividend payout ratio is 90.67%.

Chicago Atlantic BDC Company Profile

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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