Chicago Atlantic BDC (NASDAQ:LIEN) Stock Price Down 3.4% - Time to Sell?

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%.

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

Wall Street Analysts Forecast Growth

Separately, Zacks Research upgraded Chicago Atlantic BDC to a "hold" rating in a research note on Wednesday, August 20th. Three research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, Chicago Atlantic BDC currently has an average rating of "Hold".

Chicago Atlantic BDC Stock Up 1.6%

The company has a market capitalization of $253.76 million, a PE ratio of 30.05 and a beta of 0.28. The company has a 50-day moving average price of $10.62 and a two-hundred day moving average price of $10.61.

Chicago Atlantic BDC (NASDAQ:LIEN - Get Free Report) last announced its quarterly earnings results on Thursday, August 14th. The company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.36 by ($0.02). The company had revenue of $13.08 million during the quarter, compared to analysts' expectations of $13.10 million. Chicago Atlantic BDC had a net margin of 21.50% and a return on equity of 3.25%. As a group, equities analysts anticipate that Chicago Atlantic BDC, Inc. 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 Friday, October 10th. Stockholders of record on Monday, September 29th will be given a $0.34 dividend. The ex-dividend date is Monday, September 29th. This represents a $1.36 annualized dividend and a dividend yield of 12.2%. Chicago Atlantic BDC's payout ratio is 367.57%.

Hedge Funds Weigh In On Chicago Atlantic BDC

Several hedge funds have recently made changes to their positions in LIEN. Corient Private Wealth LLC purchased a new position in shares of Chicago Atlantic BDC in the second quarter valued at $2,784,000. Black Maple Capital Management LP purchased a new position in Chicago Atlantic BDC during the second quarter worth about $1,901,000. Condor Capital Management purchased a new position in Chicago Atlantic BDC during the second quarter worth about $1,844,000. Apollon Wealth Management LLC purchased a new position in Chicago Atlantic BDC during the second quarter worth about $1,060,000. Finally, Brown Advisory Inc. purchased a new position in Chicago Atlantic BDC during the second quarter worth about $1,045,000. 4.36% of the stock is currently owned by hedge funds and other institutional investors.

Chicago Atlantic BDC Company Profile

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.