Palmer Square Capital BDC (NYSE:PSBD) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Palmer Square Capital BDC from hold to sell, adding to a generally cautious analyst outlook on the stock.
• Other firms have also trimmed expectations: JPMorgan, UBS, and RBC each lowered price targets, and the consensus rating remains Hold with an average price target of $11.00.
• PSBD recently reported EPS of $0.41, missing estimates by a penny, while shares opened at $10.97 and trade below their 200-day average of $11.48.

Palmer Square Capital BDC (NYSE:PSBD - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

Several other research analysts have also weighed in on the stock. JPMorgan Chase & Co. cut their price objective on shares of Palmer Square Capital BDC from $11.50 to $10.00 and set a "neutral" rating on the stock in a report on Friday, March 13th. UBS Group cut their price objective on shares of Palmer Square Capital BDC from $11.50 to $11.00 and set a "neutral" rating on the stock in a report on Monday, April 20th. Finally, Royal Bank Of Canada cut their price target on shares of Palmer Square Capital BDC from $13.00 to $12.00 and set a "sector perform" rating on the stock in a report on Thursday, March 5th. Three equities 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 price target of $11.00.

Palmer Square Capital BDC Stock Performance

Shares of PSBD opened at $10.97 on Friday. The stock has a market capitalization of $341.26 million, a P/E ratio of -10.54 and a beta of 0.87. The company's fifty day moving average is $10.57 and its two-hundred day moving average is $11.48. Palmer Square Capital BDC has a 1 year low of $9.34 and a 1 year high of $14.98.

Palmer Square Capital BDC (NYSE:PSBD - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.01). The firm had revenue of ($0.31) million during the quarter, compared to analyst estimates of $30.11 million. Palmer Square Capital BDC had a negative net margin of 26.82% and a positive return on equity of 10.60%. Sell-side analysts predict that Palmer Square Capital BDC will post 1.5 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. Rivernorth Capital Management LLC purchased a new position in Palmer Square Capital BDC in the fourth quarter valued at approximately $7,077,000. Bank of America Corp DE raised its stake in shares of Palmer Square Capital BDC by 22.1% during the third quarter. Bank of America Corp DE now owns 367,035 shares of the company's stock valued at $4,504,000 after purchasing an additional 66,460 shares during the period. Sunesis Advisors LLC purchased a new stake in shares of Palmer Square Capital BDC during the third quarter valued at approximately $3,668,000. Closed End Fund Advisors Inc. purchased a new stake in shares of Palmer Square Capital BDC during the fourth quarter valued at approximately $2,686,000. Finally, Renaissance Technologies LLC raised its stake in shares of Palmer Square Capital BDC by 18.8% during the fourth quarter. Renaissance Technologies LLC now owns 183,000 shares of the company's stock valued at $2,231,000 after purchasing an additional 28,900 shares during the period. Hedge funds and other institutional investors own 6.52% of the company's stock.

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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