Chicago Atlantic BDC (NASDAQ:LIEN) Shares Down 3.4% - Here's What Happened

Key Points

• Chicago Atlantic BDC shares fell by 3.4% on Friday, trading as low as $10.54, despite an increase in volume by 38% compared to average sessions.
• The company reported a quarterly earnings miss with $0.34 EPS, falling short of the consensus estimate of $0.36, alongside revenues slightly under expectations at $13.08 million.
• A quarterly dividend of $0.34 per share was recently announced, representing a 12.9% yield, with an unusually high payout ratio of 367.57%.

Shares of Chicago Atlantic BDC, Inc. (NASDAQ:LIEN - Get Free Report) traded down 3.4% during trading on Friday . The stock traded as low as $10.54 and last traded at $10.57. 47,486 shares traded hands during trading, an increase of 38% from the average session volume of 34,357 shares. The stock had previously closed at $10.94.

Wall Street Analyst Weigh In

Separately, Zacks Research raised shares of Chicago Atlantic BDC to a "hold" rating in a research report on Wednesday, August 20th. Three analysts have rated the stock with a Hold rating, According to MarketBeat.com, Chicago Atlantic BDC has an average rating of "Hold".

Chicago Atlantic BDC Stock Down 3.4%

The firm has a 50-day moving average price of $10.60 and a 200 day moving average price of $10.64. The firm has a market capitalization of $241.21 million, a PE ratio of 28.57 and a beta of 0.28.

Chicago Atlantic BDC (NASDAQ:LIEN - Get Free Report) last released its quarterly earnings results on Thursday, August 14th. The company reported $0.34 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.02). Chicago Atlantic BDC had a return on equity of 3.25% and a net margin of 21.50%.The firm had revenue of $13.08 million for the quarter, compared to analysts' expectations of $13.10 million. Equities research analysts expect that Chicago Atlantic BDC, Inc. will post 0.76 earnings per share for the current year.

Chicago Atlantic BDC Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Monday, September 29th will be paid a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a yield of 12.9%. The ex-dividend date of this dividend is Monday, September 29th. Chicago Atlantic BDC's dividend payout ratio is presently 367.57%.

Institutional Investors Weigh In On Chicago Atlantic BDC

Large investors have recently added to or reduced their stakes in the business. Sage Mountain Advisors LLC purchased a new stake in Chicago Atlantic BDC during the 2nd quarter worth approximately $106,000. Bernardo Wealth Planning LLC purchased a new stake in Chicago Atlantic BDC during the 2nd quarter worth approximately $106,000. Westwood Holdings Group Inc. purchased a new stake in Chicago Atlantic BDC during the 2nd quarter worth approximately $111,000. XTX Topco Ltd purchased a new stake in Chicago Atlantic BDC during the 2nd quarter worth approximately $112,000. Finally, Mesirow Financial Investment Management Inc. purchased a new stake in Chicago Atlantic BDC during the 2nd quarter worth approximately $129,000. 4.36% of the stock is owned by hedge funds and other institutional investors.

About Chicago Atlantic BDC

Chicago Atlantic BDC Inc is a specialty finance company which has elected to be regulated as a business development company. Its investment objective is to maximize risk-adjusted returns on equity for its stockholders by investing primarily in direct loans to privately held middle-market companies, with a primary focus on cannabis companies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.