OV Management LLC Takes Position in Palmer Square Capital BDC Inc. $PSBD

Key Points

• OV Management LLC acquired 3.73 million PSBD shares worth approximately $38.9 million, giving it a 12.17% stake and making Palmer Square Capital BDC its largest portfolio holding.
• Analysts maintain a generally neutral outlook: all five covering analysts rate the stock “Hold,” with a consensus price target of $10.75. PSBD recently traded at $10.31 after reporting quarterly EPS and revenue below expectations.
• Palmer Square Capital BDC declared a quarterly dividend of $0.36 per share, equivalent to a $1.44 annualized payout and an approximately 14% yield; insiders have also purchased more than 108,000 shares over the past three months.

OV Management LLC acquired a new stake in Palmer Square Capital BDC Inc. (NYSE:PSBD - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 3,730,065 shares of the company's stock, valued at approximately $38,867,000. Palmer Square Capital BDC makes up approximately 72.6% of OV Management LLC's holdings, making the stock its largest position. OV Management LLC owned about 12.17% of Palmer Square Capital BDC as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in PSBD. Millennium Management LLC lifted its holdings in Palmer Square Capital BDC by 2.0% during the third quarter. Millennium Management LLC now owns 134,249 shares of the company's stock worth $1,647,000 after acquiring an additional 2,638 shares in the last quarter. Catalyst Capital Advisors LLC bought a new stake in shares of Palmer Square Capital BDC in the first quarter worth about $33,000. Harbour Investments Inc. acquired a new stake in shares of Palmer Square Capital BDC during the fourth quarter worth about $85,000. Trexquant Investment LP raised its position in shares of Palmer Square Capital BDC by 17.6% during the fourth quarter. Trexquant Investment LP now owns 50,118 shares of the company's stock worth $611,000 after purchasing an additional 7,496 shares during the period. Finally, Bank of America Corp DE raised its position in shares of Palmer Square Capital BDC by 5.0% during the second quarter. Bank of America Corp DE now owns 300,575 shares of the company's stock worth $4,196,000 after purchasing an additional 14,220 shares during the period. Institutional investors and hedge funds own 6.52% of the company's stock.

Insiders Place Their Bets

In other Palmer Square Capital BDC news, major shareholder Martin C. Bicknell purchased 40,000 shares of the firm's 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 directly owned 351,988 shares of the company's stock, valued at $3,716,993.28. The trade was a 12.82% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Over the last three months, insiders purchased 108,472 shares of company stock worth $1,155,558. Corporate insiders own 1.10% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the company. Wells Fargo & Company set a $11.50 price objective on Palmer Square Capital BDC in a research report on Wednesday, June 24th. Zacks Research upgraded shares of Palmer Square Capital BDC from a "strong sell" rating to a "hold" rating in a report on Monday, August 10th. 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. 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 for the company in a report on Thursday, July 2nd. Finally, Royal Bank Of Canada reduced their price target on shares of Palmer Square Capital BDC from $12.00 to $11.00 and set a "sector perform" rating for the company in a report on Wednesday, May 27th. Five research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $10.75.

Palmer Square Capital BDC Price Performance

Shares of Palmer Square Capital BDC stock opened at $10.31 on Thursday. The firm has a market cap of $316.09 million, a price-to-earnings ratio of -10.42 and a beta of 0.84. The stock's 50-day moving average is $10.28 and its 200-day moving average is $10.60. Palmer Square Capital BDC Inc. has a one year low of $9.34 and a one year high of $14.43.

Palmer Square Capital BDC (NYSE:PSBD - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $13.06 million for the quarter, compared to analyst estimates of $25.97 million. Palmer Square Capital BDC had a positive return on equity of 11.22% and a negative net margin of 26.73%. On average, equities analysts expect that Palmer Square Capital BDC Inc. will post 1.47 EPS for the current year.

Palmer Square Capital BDC Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 13th. Shareholders of record on Friday, September 25th will be given a dividend of $0.36 per share. The ex-dividend date of this dividend is Friday, September 25th. This represents a $1.44 dividend on an annualized basis and a yield of 14.0%. Palmer Square Capital BDC's dividend payout ratio is -145.45%.

About Palmer Square Capital BDC

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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