Palmer Square Capital BDC Inc. (NYSE:PSBD) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Analysts maintain a “Hold” consensus on Palmer Square Capital BDC, with all five covering brokerages issuing hold or neutral ratings and an average 12-month price target of $10.50.
• PSBD reported quarterly EPS of $0.27, below the $0.43 consensus estimate, while revenue of $13.06 million also missed expectations of $25.97 million.
• The company declared a quarterly dividend of $0.36 per share, equivalent to an annualized $1.44 payout and a reported 13.9% yield; shares recently traded near $10.38, close to the average analyst target.

Palmer Square Capital BDC Inc. (NYSE:PSBD - Get Free Report) has been given a consensus recommendation of "Hold" by the five brokerages that are currently covering the firm, Marketbeat Ratings reports. Five analysts have rated the stock with a hold recommendation. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $10.50.

Several brokerages recently issued reports on PSBD. JPMorgan Chase & Co. reduced their price target on shares of Palmer Square Capital BDC from $10.00 to $9.50 and set a "neutral" rating on the stock in a research report on Thursday, July 2nd. Wall Street Zen raised shares of Palmer Square Capital BDC from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Wells Fargo & Company set a $11.50 target price on shares of Palmer Square Capital BDC in a research report on Wednesday, June 24th. Noble Financial assumed coverage on shares of Palmer Square Capital BDC in a research report on Wednesday, June 24th. They set a "neutral" rating on the stock. Finally, Zacks Research raised shares of Palmer Square Capital BDC from a "strong sell" rating to a "hold" rating in a research note on Monday, August 10th.

Insider Buying and Selling

In other news, major shareholder Martin C. Bicknell bought 40,000 shares of the stock in a transaction dated Monday, July 6th. The stock was bought at an average cost of $10.56 per share, with a total value of $422,400.00. Following the purchase, the insider owned 351,988 shares of the company's stock, valued at approximately $3,716,993.28. This represents a 12.82% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On Palmer Square Capital BDC

Several hedge funds have recently added to or reduced their stakes in the company. OV Management LLC bought a new position in Palmer Square Capital BDC in the second quarter valued at approximately $38,867,000. Rivernorth Capital Management LLC bought a new stake in shares of Palmer Square Capital BDC during the 4th quarter valued at $7,077,000. Closed End Fund Advisors Inc. acquired a new position in shares of Palmer Square Capital BDC in the 4th quarter valued at $2,686,000. Two Sigma Investments LP lifted its stake in shares of Palmer Square Capital BDC by 142.9% in the 3rd quarter. Two Sigma Investments LP now owns 131,545 shares of the company's stock valued at $1,614,000 after purchasing an additional 77,393 shares during the period. Finally, NewGen Asset Management Ltd bought a new position in shares of Palmer Square Capital BDC in the 1st quarter worth $720,000. Institutional investors own 6.52% of the company's stock.

Palmer Square Capital BDC Stock Performance

Shares of PSBD opened at $10.38 on Monday. The stock has a fifty day moving average price of $10.18 and a two-hundred day moving average price of $10.50. Palmer Square Capital BDC has a 52-week low of $9.34 and a 52-week high of $14.00. The company has a market cap of $318.15 million, a price-to-earnings ratio of -10.48 and a beta of 0.87.

Palmer Square Capital BDC (NYSE:PSBD - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.27 EPS for the quarter, missing the consensus estimate of $0.43 by ($0.16). Palmer Square Capital BDC had a positive return on equity of 11.22% and a negative net margin of 26.73%.The business had revenue of $13.06 million for the quarter, compared to the consensus estimate of $25.97 million. As a group, research analysts predict that Palmer Square Capital BDC will post 1.5 EPS for the current fiscal year.

Palmer Square Capital BDC Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 13th. Shareholders of record on Friday, September 25th will be issued a dividend of $0.36 per share. The ex-dividend date of this dividend is Friday, September 25th. This represents a $1.44 annualized dividend and a yield of 13.9%. Palmer Square Capital BDC's dividend payout ratio is currently -145.45%.

Palmer Square Capital BDC Company Profile

Palmer Square Capital BDC Inc NYSE: PSBD is a closed-end, externally managed business development company that provides customized financing solutions to middle-market companies in the United States. The firm offers a broad range of debt and equity products—including first-lien and second-lien senior secured loans, unitranche financings, mezzanine debt and equity co-investments—to support corporate acquisitions, refinancings, growth initiatives and balance sheet restructurings.

PSBD primarily targets established privately owned and sponsored businesses across diverse industries such as healthcare, business services, industrials and consumer products.

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