Premium Income (TSE:PIC.A) Shares Up 1.6% - Here's What Happened

Key Points

• Shares rose 1.6% to C$9.03 (intraday high C$9.13) on Wednesday, with trading volume of 76,226 shares—up 77% from the average session volume of 43,157.
• The company has a market cap of C$157.66 million and a very low PE ratio of 1.88, but carries extremely high leverage with a debt-to-equity of 562.70 and modest liquidity ratios (current 1.18, quick 1.45).
• Premium Income’s strategy is to provide quarterly cash distributions from net realized gains/dividends/option premiums and it invests at least 75% of NAV in major Canadian banks (BMO, Scotiabank, CIBC, RBC, TD), with up to 25% in National Bank.

Premium Income Corporation (TSE:PIC.A - ) shot up 1.6% during trading on Wednesday . The stock traded as high as C$9.13 and last traded at C$9.03. 76,226 shares traded hands during trading, an increase of 77% from the average session volume of 43,157 shares. The stock had previously closed at C$8.89.

Premium Income Stock Performance

The firm has a market capitalization of C$157.66 million, a PE ratio of 1.88 and a beta of 1.21. The company has a debt-to-equity ratio of 562.70, a current ratio of 1.18 and a quick ratio of 1.45. The firm has a fifty day moving average price of C$8.99 and a 200 day moving average price of C$8.71.

Premium Income Company Profile

to provide Class A shareholders with quarterly cash distributions equal to the amount, if any, by which the net realized capital gains, dividends and option premiums (other than option premiums in respect of options outstanding at year-end) earned on the Funds portfolio in any year, net of expenses and loss carry forwards, exceed the amount of the distributions paid on Class A shares upon windup of the Fund To accomplish its objectives, the Fund invests at least 75 percent of its net asset value (``NAV) in common shares of the Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank (collectively, the ``Banks) and may also invest up to 25 percent of its NAV in common shares of National Bank of Canada.

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