Royal Bank Of Canada Has Lowered Expectations for Palmer Square Capital BDC (NYSE:PSBD) Stock Price

Key Points

• Royal Bank of Canada cut its price target on Palmer Square Capital BDC from $13.00 to $12.00 and kept a "sector perform" rating, and UBS also trimmed its target to $13.00; analysts' consensus is a Hold with an average target of $12.75, implying only modest upside.
• Shares traded at $11.29 (+1.2%) and the company posted a slight EPS miss (EPS $0.41 vs. $0.42 expected) alongside a negative net margin, with a market cap of about $352 million and a 52-week range of $10.10–$15.62.
• Several hedge funds (including Rivernorth, Sunesis and Two Sigma) recently added or increased positions in PSBD, though institutional ownership remains relatively low at about 6.52%.

Palmer Square Capital BDC (NYSE:PSBD - Get Free Report) had its target price lowered by Royal Bank Of Canada from $13.00 to $12.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective would indicate a potential upside of 6.29% from the company's current price.

Separately, UBS Group dropped their price objective on Palmer Square Capital BDC from $13.50 to $13.00 and set a "neutral" rating on the stock in a research note on Wednesday, November 19th. Four research analysts have rated the stock with a Hold rating, According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $12.75.

Palmer Square Capital BDC Trading Up 1.2%

Shares of Palmer Square Capital BDC stock traded up $0.13 during trading hours on Thursday, reaching $11.29. 10,873 shares of the company's stock were exchanged, compared to its average volume of 82,917. The stock has a market cap of $352.25 million, a P/E ratio of -102.64 and a beta of 0.78. The company has a 50 day moving average of $11.64 and a two-hundred day moving average of $12.33. Palmer Square Capital BDC has a fifty-two week low of $10.10 and a fifty-two week high of $15.62.

Palmer Square Capital BDC (NYSE:PSBD - Get Free Report) last released its earnings results 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). Palmer Square Capital BDC had a positive return on equity of 10.82% and a negative net margin of 2.55%.The company had revenue of ($0.31) million for the quarter, compared to the consensus estimate of $30.11 million. As a group, analysts expect that Palmer Square Capital BDC will post 1.96 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Palmer Square Capital BDC

Several hedge funds have recently added to or reduced their stakes in PSBD. Rivernorth Capital Management LLC acquired a new position in shares of Palmer Square Capital BDC in the fourth quarter valued at $7,077,000. Sunesis Advisors LLC bought a new stake in shares of Palmer Square Capital BDC during the 3rd quarter worth about $3,668,000. Closed End Fund Advisors Inc. bought a new stake in shares of Palmer Square Capital BDC during the 4th quarter worth about $2,686,000. UMB Bank n.a. acquired a new position in Palmer Square Capital BDC in the 3rd quarter valued at about $1,000,000. Finally, Two Sigma Investments LP grew its stake in Palmer Square Capital BDC by 142.9% in the 3rd quarter. Two Sigma Investments LP now owns 131,545 shares of the company's stock valued at $1,614,000 after buying an additional 77,393 shares during the last quarter. Institutional investors and hedge funds 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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