Palmer Square Capital BDC Inc. (NYSE:PSBD) Stock Has Consensus Price Target of $10.50

Key Points

• Analyst sentiment is neutral: All five covering analysts rate Palmer Square Capital BDC “Hold,” with an average 12-month price target of $10.50 versus the stock’s $9.90 price.
• Quarterly earnings missed expectations: The company reported adjusted earnings of $0.27 per share, below the $0.43 consensus estimate, though revenue of $27.3 million exceeded forecasts.
• Dividend yield remains high: Palmer Square Capital BDC declared a quarterly dividend of $0.36 per share, equivalent to $1.44 annually and a 14.5% yield, despite a negative payout ratio.

Palmer Square Capital BDC Inc. (NYSE:PSBD - Get Free Report) has received an average recommendation of "Hold" from the five ratings firms that are currently covering the firm, MarketBeat reports. Five analysts have rated the stock with a hold recommendation. The average 12-month target price among brokers that have covered the stock in the last year is $10.50.

A number of analysts have recently weighed in on the company. UBS Group dropped their price objective on Palmer Square Capital BDC from $11.00 to $10.00 and set a "neutral" rating for the company in a research note on Tuesday, September 1st. 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 price target on shares of Palmer Square Capital BDC in a 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 for the company. Finally, JPMorgan Chase & Co. dropped their price target on shares of Palmer Square Capital BDC from $10.00 to $9.50 and set a "neutral" rating for the company in a research report on Thursday, July 2nd.

Insider Activity at Palmer Square Capital BDC

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

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Squarepoint Ops LLC purchased a new stake in Palmer Square Capital BDC in the 2nd quarter worth approximately $1,362,000. OV Management LLC bought a new stake in shares of Palmer Square Capital BDC in the 2nd quarter worth approximately $38,867,000. Bank of America Corp DE increased its stake in shares of Palmer Square Capital BDC by 10.9% during the first quarter. Bank of America Corp DE now owns 576,931 shares of the company's stock valued at $5,637,000 after buying an additional 56,547 shares during the period. Rivernorth Capital Management LLC raised its holdings in shares of Palmer Square Capital BDC by 43.8% during the first quarter. Rivernorth Capital Management LLC now owns 834,603 shares of the company's stock valued at $8,154,000 after acquiring an additional 254,061 shares in the last quarter. Finally, NewGen Asset Management Ltd bought a new position in shares of Palmer Square Capital BDC during the first quarter valued at approximately $720,000. Hedge funds and other institutional investors own 6.52% of the company's stock.

Palmer Square Capital BDC Trading Up 0.1%

NYSE PSBD opened at $9.90 on Friday. Palmer Square Capital BDC has a 1-year low of $9.34 and a 1-year high of $13.11. The stock has a 50-day moving average of $10.18 and a 200-day moving average of $10.41. The firm has a market cap of $303.56 million, a PE ratio of -10.00 and a beta of 0.87.

Palmer Square Capital BDC (NYSE:PSBD - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.27 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.16). The company had revenue of $27.30 million for the quarter, compared to analysts' expectations of $25.97 million. Palmer Square Capital BDC had a negative net margin of 26.73% and a positive return on equity of 11.22%. As a group, equities research analysts forecast that Palmer Square Capital BDC will post 1.5 earnings per share 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. Stockholders of record on Friday, September 25th will be paid a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 14.5%. The ex-dividend date of this dividend is Friday, September 25th. Palmer Square Capital BDC's dividend payout ratio is -145.45%.

Palmer Square Capital BDC Company Profile

Palmer Square Capital BDC, Inc is a business development company that invests in privately held middle-market companies. The company seeks to generate current income and, to a lesser extent, capital appreciation through investments in corporate debt and related securities.

Its portfolio is primarily focused on senior secured loans, including first-lien and unitranche loans, issued by companies operating across a range of industries. Palmer Square Capital BDC may also invest in subordinated debt, unsecured debt, warrants and equity securities when appropriate.

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