Palmer Square Capital BDC (PSBD) Stock Price, News & Analysis

Company Overview

Palmer Square Capital BDC, Inc. (NYSE: PSBD) is an externally managed business development company focused on providing customized financing solutions to U.S. middle-market companies. Chartered under the Investment Company Act of 1940, the firm bridges the gap for borrowers seeking flexible capital structures beyond traditional bank financing. Since its inception, it has aimed to deliver tailored debt facilities that support growth initiatives, acquisitions, refinancings and recapitalizations across diverse sectors.

The company’s investment approach centers on direct lending through a spectrum of debt instruments, including first-lien, unitranche, second-lien and mezzanine loans, as well as selective equity co-investments. Palmer Square Capital BDC prioritizes transactions with companies that demonstrate stable cash flows and growth potential, often targeting business services, healthcare, information technology, consumer and industrial enterprises. Its emphasis on bespoke structuring and expedited execution allows sponsors and corporate management teams to access capital aligned with their strategic objectives.

Palmer Square Capital BDC is externally managed by Palmer Square Capital Management, LP, an investment adviser specializing in private credit and middle-market financing. The adviser’s team comprises seasoned professionals with extensive experience in credit underwriting, transaction structuring and portfolio management. Independent directors on the board oversee governance, compliance and alignment of interests, ensuring rigorous oversight and adherence to the firm’s investment mandate.

Serving clients across the continental United States, Palmer Square Capital BDC leverages its adviser’s proprietary deal flow and credit research infrastructure to identify and structure attractive financing opportunities. The company emphasizes comprehensive due diligence, active portfolio monitoring and conservative underwriting practices. This disciplined approach has enabled Palmer Square Capital BDC to build a diversified portfolio of debt investments, establishing its reputation as a reliable capital partner in the middle-market sector.

Key Stats

• Today's Range: $13.97 to $13.97
• 50-Day Range: $12.13 to $14.75
• 52-Week Range: $11.51 to $16.85
• Volume: 2,547 shs
• Average Volume: 36,943 shs
• Market Capitalization: $457.75 million
• P/E Ratio: 28.28
• Dividend Yield: 10.18%
• Price Target: $14.13
• Consensus Rating: Moderate Buy

Palmer Square Capital BDC Stock Analysis - MarketRank™

Palmer Square Capital BDC scored higher than 15% of companies evaluated by MarketBeat, and ranked 864th out of 903 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Palmer Square Capital BDC has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on 2 buy ratings, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Palmer Square Capital BDC has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 0.6 / 5
• Proj. Earnings Growth: -6.63%

Earnings Growth

Earnings for Palmer Square Capital BDC are expected to decrease by -6.63% in the coming year, from $1.96 to $1.83 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Palmer Square Capital BDC is 28.28, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 25.61.

Price to Earnings Ratio vs. Sector

The P/E ratio of Palmer Square Capital BDC is 28.28, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 20.06.

Price to Book Value per Share Ratio

Palmer Square Capital BDC has a P/B Ratio of 0.86. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

0.26% of the float of Palmer Square Capital BDC has been sold short.

Short Interest Ratio / Days to Cover

Palmer Square Capital BDC has a short interest ratio ("days to cover") of 0.7, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Palmer Square Capital BDC has recently increased by 14.52%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Palmer Square Capital BDC is a leading dividend payer. It pays a dividend yield of 10.25%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Palmer Square Capital BDC does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Palmer Square Capital BDC is 288.00%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, Palmer Square Capital BDC will have a dividend payout ratio of 78.69% in the coming year. This indicates that Palmer Square Capital BDC may not be able to sustain their current dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

0.26% of the float of Palmer Square Capital BDC has been sold short.

Short Interest Ratio / Days to Cover

Palmer Square Capital BDC has a short interest ratio ("days to cover") of 0.7, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Palmer Square Capital BDC has recently increased by 14.52%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: N/A
• News Sentiment: N/A

Company Ownership

• Score: 0.0 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Palmer Square Capital BDC insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 0.96% of the stock of Palmer Square Capital BDC is held by insiders.

Percentage Held by Institutions

Only 6.52% of the stock of Palmer Square Capital BDC is held by institutions.

PSBD Stock Analysis - Frequently Asked Questions

How have PSBD shares performed this year?

Palmer Square Capital BDC's stock was trading at $15.20 at the start of the year. Since then, PSBD stock has decreased by 7.0% and is now trading at $14.14.

How were Palmer Square Capital BDC's earnings last quarter?

Palmer Square Capital BDC Inc. (NYSE:PSBD) released its quarterly earnings results on Wednesday, May, 7th. The company reported $0.40 EPS for the quarter, missing analysts' consensus estimates of $0.44 by $0.04. The company had revenue of $31.21 million for the quarter, compared to analysts' expectations of $32.55 million. Palmer Square Capital BDC had a trailing twelve-month return on equity of 11.04% and a net margin of 11.72%.

When did Palmer Square Capital BDC IPO?

Palmer Square Capital BDC (PSBD) raised $90 million in an initial public offering on Thursday, January 18th 2024. The company issued 5,500,000 shares at a price of $16.45 per share. J.P. Morgan, BofA Securities, RBC Capital Markets, UBS Investment Bank and Citigroup served as the underwriters for the IPO and Janney Montgomery Scott, Oppenheimer & Co. and Clear Street were co-managers.

Who are Palmer Square Capital BDC's major shareholders?

Top institutional investors of Palmer Square Capital BDC include Confluence Investment Management LLC (0.07%).
View institutional ownership trends.

How do I buy shares of Palmer Square Capital BDC?

Shares of PSBD stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Palmer Square Capital BDC own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Palmer Square Capital BDC investors own include ARMOUR Residential REIT (ARR), Bank Of Montreal (BMO), MFA Financial (MFA), United Parcel Service (UPS), Adverum Biotechnologies (ADVM), APi Group (APG) and Avino Silver & Gold Mines (ASM).

Company Calendar

• Record date for 4/10 Dividend: 3/28/2025
• Ex-Dividend for 4/10 Dividend: 3/28/2025
• Dividend Payable: 4/10/2025
• Last Earnings: 5/07/2025
• Record date for 7/14 Dividend: 6/27/2025
• Ex-Dividend for 7/14 Dividend: 6/27/2025
• Today: 7/09/2025
• Dividend Payable: 7/14/2025
• Next Earnings (Estimated): 8/06/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: FIN - SBIC&COMMRL
• Sub-Industry: N/A
• Current Symbol: NYSE:PSBD
• Previous Symbol: NYSE:PSBD
• CIK: 1794776
• Web: palmersquarebdc.com
• Phone: 816-994-3200
• Fax: N/A
• Employees: N/A
• Year Founded: N/A

Price Target and Rating

• Average Price Target for Palmer Square Capital BDC: $14.13
• High Price Target: $15.00
• Low Price Target: $13.50
• Potential Upside/Downside: +0.9%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.50
• Research Coverage: 4 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.50
• Trailing P/E Ratio: 28.00
• Forward P/E Ratio: 7.14
• P/E Growth: N/A
• Net Income: $47.67 million
• Net Margins: 11.72%
• Pretax Margin: 11.72%
• Return on Equity: 11.04%
• Return on Assets: 4.18%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 1.61
• Quick Ratio: 1.61

Sales & Book Value

• Annual Sales: $21.25 million
• Price / Sales: 21.32
• Cash Flow: $1.94 per share
• Price / Cash Flow: 7.20
• Book Value: $16.48 per share
• Price / Book: 0.85

Miscellaneous

• Outstanding Shares: 32,373,000
• Free Float: 32,062,000
• Market Cap: $453.22 million
• Optionable: N/A
• Beta: 0.82