Premium Income (TSE:PIC.A) Stock Price Down 0.6% - Should You Sell?

Key Points

• Premium Income Corporation shares dropped by 0.6%, trading at C$8.25, down from a previous close of C$8.30, with a significant decrease in trading volume.
• The company has a market cap of C$130.95 million and a notably low P/E ratio of 2.37, indicating potential undervaluation.
• Premium Income's investment strategy focuses primarily on Canadian banking stocks, allocating at least 75% of its net asset value to prominent banks like the Bank of Montreal and Royal Bank of Canada.

Premium Income Corporation (TSE:PIC.A - ) shares were down 0.6% during mid-day trading on Wednesday . The company traded as low as C$8.19 and last traded at C$8.25. Approximately 37,318 shares changed hands during trading, a decline of 21% from the average daily volume of 47,339 shares. The stock had previously closed at C$8.30.

Premium Income Trading Down 0.6%

The firm has a market capitalization of C$130.95 million, a P/E ratio of 2.37 and a beta of 1.22. The company has a quick ratio of 1.45, a current ratio of 1.18 and a debt-to-equity ratio of 562.70. The business has a 50-day moving average price of C$7.65 and a 200-day moving average price of C$6.38.

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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