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

Company Overview

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. By tailoring its capital structures to meet specific client needs, the company seeks to deliver attractive risk-adjusted returns through current income and potential capital appreciation while also providing sponsors and management teams with flexible long-term capital.

Since commencing operations in mid-2021, Palmer Square Capital BDC has built a diversified portfolio of direct lending and specialty finance investments. Its disciplined underwriting process emphasizes rigorous credit analysis, active portfolio monitoring and collaboration with management teams to drive operational improvements and support strategic growth objectives.

The firm’s external manager, Palmer Square Capital Management, draws on a team of credit professionals with deep experience in middle-market lending. Headquartered in New York City, PSBD leverages the broader firm’s resources and market relationships to originate, structure and manage bespoke financing transactions for businesses across North America.

Key Stats

• Today's Range: $12.07 to $12.40
• 50-Day Range: $12.15 to $14.19
• 52-Week Range: $11.51 to $16.32
• Volume: 56,525 shs
• Average Volume: 49,171 shs
• Market Capitalization: $388.40 million
• P/E Ratio: 21.61
• Dividend Yield: 11.91%
• Price Target: $13.88
• Consensus Rating: Hold

Palmer Square Capital BDC Stock Analysis - MarketRank™

Palmer Square Capital BDC scored higher than 34% of companies evaluated by MarketBeat, and ranked 806th out of 947 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: 2.5 / 5
• Analyst Rating: Hold

Consensus Rating

Palmer Square Capital BDC has received a consensus rating of Hold. The company's average rating score is 2.25, and is based on 1 buy rating, 3 hold ratings, and no sell ratings.

Upside Potential

Palmer Square Capital BDC has a consensus price target of $13.88, representing about 12.7% upside from its current price of $12.31.

Amount of Analyst Coverage

Palmer Square Capital BDC has only been the subject of 2 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.9 / 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 21.98, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 233.26.

Price to Earnings Ratio vs. Sector

The P/E ratio of Palmer Square Capital BDC is 21.98, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 30.16.

Price to Book Value per Share Ratio

Palmer Square Capital BDC has a P/B Ratio of 0.75. 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

0.12% 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 0.4, 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 10.71%, 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 11.48%, 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 257.14%. 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

0.12% 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 0.4, 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 10.71%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 0.0 / 5
• News Sentiment: N/A

Search Interest

Only 5 people have searched for PSBD on MarketBeat in the last 30 days. This is a decrease of -29% compared to the previous 30 days.

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 beginning of 2025. Since then, PSBD stock has decreased by 19.0% and is now trading at $12.31.

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

Palmer Square Capital BDC Inc. (NYSE:PSBD) posted its quarterly earnings results on Wednesday, August, 6th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.41 by $0.02. The firm earned $31.68 million during the quarter, compared to analyst estimates of $30.29 million. Palmer Square Capital BDC had a net margin of 13.51% and a trailing twelve-month return on equity of 10.91%.

When did Palmer Square Capital BDC IPO?

Palmer Square Capital BDC (PSBD) raised $90 million in an IPO 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.

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 7/14 Dividend: 6/27/2025
• Ex-Dividend for 7/14 Dividend: 6/27/2025
• Dividend Payable: 7/14/2025
• Last Earnings: 8/06/2025
• Record date for 10/14 Dividend: 9/26/2025
• Ex-Dividend for 10/14 Dividend: 9/26/2025
• Today: 10/10/2025
• Dividend Payable: 10/14/2025
• Next Earnings (Confirmed): 11/05/2025
• 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: $13.88
• High Price Target: $15.00
• Low Price Target: $12.00
• Potential Upside/Downside: +13.4%
• Consensus Rating: Hold
• Rating Score (0-4): 2.25
• Research Coverage: 4 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.56
• Trailing P/E Ratio: 21.86
• Forward P/E Ratio: 6.24
• P/E Growth: N/A
• Net Income: $47.67 million
• Net Margins: 13.51%
• Pretax Margin: 13.51%
• Return on Equity: 10.91%
• Return on Assets: 4.15%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 1.62
• Quick Ratio: 1.62

Sales & Book Value

• Annual Sales: $23.10 million
• Price / Sales: 17.01
• Cash Flow: $1.89 per share
• Price / Cash Flow: 6.47
• Book Value: $16.48 per share
• Price / Book: 0.74

Miscellaneous

• Outstanding Shares: 32,126,000
• Free Float: 31,818,000
• Market Cap: $393.06 million
• Optionable: N/A
• Beta: 0.71