Sound Point Meridian Capital, Inc. (NYSE:SPMC) Stock Short Interest Declines 56.9%

Key Points

• Short interest fell 56.9% to 21,886 shares as of October 15, representing about 0.1% of outstanding shares and only 0.7 days of average trading volume.
• SPMC shares traded at $5.75, near the bottom of their $5.49–$16.75 annual range. The company missed quarterly expectations, reporting $0.24 EPS versus the $0.30 consensus and revenue of $12.42 million versus $14.18 million expected.
• The company announced a monthly $0.13 dividend, equivalent to an annualized $1.56 payout and a reported 27.1% yield. Analysts maintain a “Moderate Buy” consensus with a $15.12 target price, despite mixed individual ratings.

Sound Point Meridian Capital, Inc. (NYSE:SPMC - Get Free Report) was the recipient of a large decrease in short interest in the month of October. As of October 15th, there was short interest totaling 21,886 shares, a decrease of 56.9% from the September 30th total of 50,773 shares. Approximately 0.1% of the shares of the company are sold short. Based on an average daily volume of 31,396 shares, the short-interest ratio is presently 0.7 days.

Sound Point Meridian Capital Price Performance

Sound Point Meridian Capital stock traded down $0.15 during mid-day trading on Friday, reaching $5.75. The company had a trading volume of 34,955 shares, compared to its average volume of 32,817. Sound Point Meridian Capital has a 1 year low of $5.49 and a 1 year high of $16.75. The company has a market capitalization of $117.88 million, a P/E ratio of -0.99 and a beta of 1.20. The stock's 50-day simple moving average is $8.20 and its 200-day simple moving average is $10.07.

Sound Point Meridian Capital (NYSE:SPMC - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The company reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.06). The firm had revenue of $12.42 million during the quarter, compared to analyst estimates of $14.18 million. On average, equities analysts forecast that Sound Point Meridian Capital will post 1.11 EPS for the current fiscal year.

Sound Point Meridian Capital Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be issued a $0.13 dividend. This represents a $1.56 dividend on an annualized basis and a yield of 27.1%. The ex-dividend date is Tuesday, December 15th. Sound Point Meridian Capital's payout ratio is presently -26.99%.

Institutional Trading of Sound Point Meridian Capital

A hedge fund recently bought a new position in Sound Point Meridian Capital stock. Advisory Solutions Group LLC acquired a new position in Sound Point Meridian Capital, Inc. (NYSE:SPMC - Free Report) during the second quarter, according to the company in its most recent filing with the SEC. The fund acquired 31,935 shares of the company's stock, valued at approximately $316,000. Advisory Solutions Group LLC owned approximately 0.16% of Sound Point Meridian Capital at the end of the most recent reporting period.

Analyst Ratings Changes

A number of research firms have commented on SPMC. Zacks Research upgraded shares of Sound Point Meridian Capital from a "hold" rating to a "strong-buy" rating in a research note on Tuesday. B. Riley Financial dropped their price target on Sound Point Meridian Capital from $10.50 to $10.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, Sound Point Meridian Capital currently has an average rating of "Moderate Buy" and a consensus target price of $15.12.

About Sound Point Meridian Capital

Sound Point Meridian Capital, Inc NYSE: SPMC is a closed-end investment company focused on investing in collateralized loan obligations (CLOs). The company primarily seeks exposure to CLO equity and junior debt tranches, which are backed by pools of senior secured loans made to corporate borrowers.

Sound Point Meridian Capital is externally managed by an affiliate of Sound Point Capital Management, an alternative investment manager. Its investment strategy is designed to provide shareholders with income and potential capital appreciation through a diversified portfolio of CLO investments rather than through the direct operation of businesses or the sale of consumer products and services.

The company invests in U.S.

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