Palmer Square Capital BDC Inc. (NYSE:PSBD) Receives Consensus Recommendation of "Reduce" from Analysts

Key Points

• Palmer Square Capital BDC has a consensus analyst rating of "Reduce", with five firms covering the stock: one sell and four hold ratings. The average 12-month price target is $10.75.
• Recent analyst actions were mostly cautious, including target cuts from UBS and JPMorgan and downgrades from Zacks Research and Wall Street Zen. Noble Financial also initiated coverage with a neutral rating.
• The stock opened at $9.84 and recently paid a $0.36 quarterly dividend, which annualizes to a 14.6% yield. Insider buying was notable, with major shareholder Martin C. Bicknell purchasing 40,000 shares in July.

Palmer Square Capital BDC Inc. (NYSE:PSBD - Get Free Report) has received an average rating of "Reduce" from the five ratings firms that are currently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation and four have assigned a hold recommendation to the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $10.75.

A number of equities analysts recently weighed in on the company. UBS Group reduced their price target on Palmer Square Capital BDC from $11.50 to $11.00 and set a "neutral" rating for the company in a report on Monday, April 20th. JPMorgan Chase & Co. cut their price objective on 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. Zacks Research cut Palmer Square Capital BDC from a "hold" rating to a "strong sell" rating in a research report on Friday, May 22nd. Wall Street Zen downgraded Palmer Square Capital BDC from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. Finally, Noble Financial assumed coverage on Palmer Square Capital BDC in a research report on Wednesday, June 24th. They set a "neutral" rating on the stock.

Palmer Square Capital BDC Stock Down 1.9%

NYSE:PSBD opened at $9.84 on Friday. Palmer Square Capital BDC has a 52 week low of $9.34 and a 52 week high of $14.43. The stock has a market capitalization of $306.25 million, a PE ratio of -9.46 and a beta of 0.81. The stock's 50-day moving average price is $10.62 and its 200-day moving average price is $10.93.

Palmer Square Capital BDC Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, July 13th. Shareholders of record on Friday, June 26th were given a dividend of $0.36 per share. The ex-dividend date was Friday, June 26th. This represents a $1.44 dividend on an annualized basis and a yield of 14.6%. Palmer Square Capital BDC's dividend payout ratio is currently -138.46%.

Insider Transactions at Palmer Square Capital BDC

In related news, major shareholder Martin C. Bicknell bought 40,000 shares of the company's stock in a transaction dated Monday, July 6th. The shares were acquired at an average price of $10.56 per share, for a total transaction of $422,400.00. Following the completion of the transaction, the insider directly owned 351,988 shares in the company, valued at $3,716,993.28. This trade represents a 12.82% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders have acquired 108,472 shares of company stock worth $1,155,558 over the last quarter. Company insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of PSBD. Catalyst Capital Advisors LLC purchased a new position in Palmer Square Capital BDC in the 1st quarter valued at about $33,000. Harbour Investments Inc. purchased a new stake in Palmer Square Capital BDC during the 4th quarter worth approximately $85,000. TrueMark Investments LLC acquired a new position in shares of Palmer Square Capital BDC during the first quarter valued at approximately $188,000. Citadel Advisors LLC acquired a new position in shares of Palmer Square Capital BDC during the third quarter valued at approximately $230,000. Finally, Clear Harbor Asset Management LLC acquired a new position in shares of Palmer Square Capital BDC during the fourth quarter valued at approximately $305,000. Institutional investors and hedge funds own 6.52% of the company's stock.

Palmer Square Capital BDC Company Profile

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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