Insider Buying: Sound Point Meridian Capital (NYSE:SPMC) CEO Purchases 8,000 Shares of Stock

Key Points

• Ujjaval Desai, CEO of Sound Point Meridian Capital, acquired 8,000 shares at an average price of $15.71 per share, increasing his total ownership to approximately $1.23 million.
• The company is set to pay a monthly dividend of $0.25 per share on November 28th, offering a high annualized yield of 19.2%.
• Despite the earnings miss with $0.53 EPS reported against a $0.56 estimate, analysts maintain an average buy rating with a price target of $20.00.

Sound Point Meridian Capital, Inc. (NYSE:SPMC - Get Free Report) CEO Ujjaval Desai bought 8,000 shares of the stock in a transaction on Wednesday, October 22nd. The shares were acquired at an average cost of $15.71 per share, for a total transaction of $125,680.00. Following the purchase, the chief executive officer owned 78,579 shares in the company, valued at approximately $1,234,476.09. This represents a 11.33% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.

Ujjaval Desai also recently made the following trade(s):

• On Monday, October 20th, Ujjaval Desai purchased 12,000 shares of Sound Point Meridian Capital stock. The stock was purchased at an average cost of $15.36 per share, with a total value of $184,320.00.

Sound Point Meridian Capital Stock Performance

Shares of NYSE SPMC traded up $0.04 during trading hours on Wednesday, hitting $15.63. The stock had a trading volume of 37,701 shares, compared to its average volume of 27,421. The company has a market capitalization of $319.84 million, a P/E ratio of 11.00 and a beta of 0.22. The firm's 50-day moving average price is $17.55 and its two-hundred day moving average price is $17.99. Sound Point Meridian Capital, Inc. has a 52 week low of $15.01 and a 52 week high of $22.30.

Sound Point Meridian Capital (NYSE:SPMC - Get Free Report) last announced its earnings results on Tuesday, August 12th. The company reported $0.53 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.56 by ($0.03). The business had revenue of $19.21 million during the quarter, compared to analysts' expectations of $20.72 million.

Sound Point Meridian Capital Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Friday, November 28th. Shareholders of record on Friday, November 14th will be paid a dividend of $0.25 per share. This represents a c) annualized dividend and a yield of 19.2%. The ex-dividend date is Friday, November 14th. Sound Point Meridian Capital's dividend payout ratio is currently 211.27%.

Institutional Investors Weigh In On Sound Point Meridian Capital

A number of hedge funds and other institutional investors have recently bought and sold shares of SPMC. Everest Management Corp. acquired a new stake in Sound Point Meridian Capital in the 2nd quarter valued at approximately $1,303,000. Marshall Wace LLP raised its position in Sound Point Meridian Capital by 35.4% in the 2nd quarter. Marshall Wace LLP now owns 77,152 shares of the company's stock valued at $1,379,000 after buying an additional 20,163 shares during the last quarter. Envestnet Asset Management Inc. raised its position in Sound Point Meridian Capital by 8.6% in the 1st quarter. Envestnet Asset Management Inc. now owns 145,851 shares of the company's stock valued at $2,908,000 after buying an additional 11,602 shares during the last quarter. Finally, Kim LLC acquired a new stake in Sound Point Meridian Capital in the 2nd quarter valued at approximately $192,821,000.

Wall Street Analyst Weigh In

Several research firms recently issued reports on SPMC. Alliance Global Partners started coverage on Sound Point Meridian Capital in a report on Friday, July 18th. They issued a "buy" rating and a $20.00 price target on the stock. Zacks Research raised Sound Point Meridian Capital from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 26th. Finally, Compass Point set a $20.00 target price on Sound Point Meridian Capital in a research note on Tuesday, September 30th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $20.00.

About Sound Point Meridian Capital

Sound Point Meridian Capital Inc is an externally managed, non-diversified closed-end management investment company. Its investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation equity and mezzanine tranches.

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