Chicago Atlantic BDC (NASDAQ:LIEN) Shares Up 1.2% - Time to Buy?

Key Points

• LIEN shares rose 1.2% to $9.15 on increased trading volume, but the stock remains below its 50-day and 200-day moving averages of $9.85 and $9.72, respectively.
• Chicago Atlantic BDC missed quarterly expectations, reporting $0.34 in EPS versus $0.40 expected and revenue of $13.97 million versus the $16.23 million consensus estimate. Zacks Research downgraded the stock to “hold,” matching the broader analyst consensus.
• The company pays a $0.34 quarterly dividend, equivalent to a 14.9% annualized yield, although its payout ratio is high at 97.84%. Insiders purchased more than 123,000 shares worth approximately $1.18 million over the past three months.

Chicago Atlantic BDC, Inc. (NASDAQ:LIEN - Get Free Report) traded up 1.2% on Thursday. The stock traded as high as $9.15 and last traded at $9.15. Approximately 111,016 shares changed hands during mid-day trading, an increase of 34% from the average daily volume of 83,063 shares. The stock had previously closed at $9.04.

Analysts Set New Price Targets

Separately, Zacks Research downgraded shares of Chicago Atlantic BDC from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. One equities research analyst has rated the stock with a Hold rating. Based on data from MarketBeat, the company presently has an average rating of "Hold".

Chicago Atlantic BDC Stock Up 1.2%

The firm has a market cap of $208.80 million, a price-to-earnings ratio of 6.58 and a beta of 0.30. The business has a 50 day moving average price of $9.85 and a 200-day moving average price of $9.72.

Chicago Atlantic BDC (NASDAQ:LIEN - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The company reported $0.34 EPS for the quarter, missing the consensus estimate of $0.40 by ($0.06). The company had revenue of $13.97 million for the quarter, compared to analyst estimates of $16.23 million. Chicago Atlantic BDC had a return on equity of 11.66% and a net margin of 52.82%. Research analysts anticipate that Chicago Atlantic BDC, Inc. will post 1.64 earnings per share for the current fiscal year.

Chicago Atlantic BDC Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Friday, September 25th were paid a dividend of $0.34 per share. The ex-dividend date was Friday, September 25th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 14.9%. Chicago Atlantic BDC's dividend payout ratio (DPR) is currently 97.84%.

Insiders Place Their Bets

In other news, CIO Scott Gordon purchased 18,300 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was acquired at an average cost of $9.54 per share, with a total value of $174,582.00. Following the acquisition, the executive owned 53,324 shares in the company, valued at approximately $508,710.96. This trade represents a 52.25% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder John Mazarakis purchased 60,000 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were purchased at an average cost of $9.44 per share, with a total value of $566,400.00. Following the completion of the acquisition, the insider owned 60,000 shares in the company, valued at approximately $566,400. This represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have bought 123,166 shares of company stock worth $1,177,717. Corporate insiders own 12.90% of the company's stock.

Hedge Funds Weigh In On Chicago Atlantic BDC

Institutional investors have recently added to or reduced their stakes in the company. Compass Financial Management LLC purchased a new position in Chicago Atlantic BDC in the 2nd quarter valued at about $104,000. Triumph Capital Management grew its stake in shares of Chicago Atlantic BDC by 56.2% during the second quarter. Triumph Capital Management now owns 6,725 shares of the company's stock valued at $66,000 after acquiring an additional 2,420 shares in the last quarter. Corient Private Wealth LP purchased a new stake in shares of Chicago Atlantic BDC during the second quarter worth about $1,845,000. Partners Capital Investment Group LLP purchased a new stake in shares of Chicago Atlantic BDC during the second quarter worth about $1,420,000. Finally, BlackRock Inc. acquired a new position in shares of Chicago Atlantic BDC in the second quarter worth about $728,000. Institutional investors and hedge funds own 4.36% of the company's stock.

About Chicago Atlantic BDC

Chicago Atlantic BDC, Inc NASDAQ: LIEN is a business development company that provides financing to privately held, lower middle-market businesses. The company seeks to support companies that may have limited access to traditional bank lending by investing in privately negotiated debt and equity securities.

Its investment activities primarily include senior secured loans, unitranche loans, subordinated or second-lien debt, and related equity investments. Chicago Atlantic BDC focuses on generating income from its lending portfolio while also pursuing potential long-term gains through equity and equity-linked investments.

The company is managed by Chicago Atlantic BDC Advisers, LLC, an affiliate of Chicago Atlantic Group, an alternative investment firm.

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