Sound Point Meridian Capital, Inc. (NYSE:SPMC) Short Interest Update

Key Points

• Short interest in Sound Point Meridian Capital fell sharply in June, dropping 54.1% to 37,664 shares as of June 30. That leaves just 0.2% of the float sold short, with a short-interest ratio of 1.8 days.
• Analyst sentiment is mixed, with the current consensus at Hold and an average price target of $16.10. Recent actions included a downgrade by Zacks Research to “strong sell,” while Alliance Global Partners reiterated a “buy” rating.
• The company recently reported missed quarterly earnings and revenue estimates, posting $0.34 EPS versus $0.41 expected and $12.57 million in revenue versus $17.20 million expected. It also announced a monthly dividend of $0.20 per share, implying a 22.0% annualized yield.

Sound Point Meridian Capital, Inc. (NYSE:SPMC - Get Free Report) was the recipient of a significant drop in short interest in the month of June. As of June 30th, there was short interest totaling 37,664 shares, a drop of 54.1% from the June 15th total of 82,045 shares. Currently, 0.2% of the shares of the company are sold short. Based on an average trading volume of 21,054 shares, the short-interest ratio is presently 1.8 days.

Wall Street Analyst Weigh In

SPMC has been the topic of a number of analyst reports. Zacks Research cut shares of Sound Point Meridian Capital from a "hold" rating to a "strong sell" rating in a research note on Monday, June 1st. B. Riley Financial decreased their target price on shares of Sound Point Meridian Capital from $12.00 to $10.00 and set a "neutral" rating for the company in a research note on Monday, March 16th. Finally, Alliance Global Partners reiterated a "buy" rating on shares of Sound Point Meridian Capital in a research note on Wednesday, May 27th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Sound Point Meridian Capital has a consensus rating of "Hold" and an average price target of $16.10.

Insider Buying and Selling

In related news, major shareholder Guaranty Ltd Assured purchased 242,718 shares of Sound Point Meridian Capital stock in a transaction that occurred on Thursday, April 30th. The stock was bought at an average cost of $24.72 per share, for a total transaction of $5,999,988.96. Following the completion of the transaction, the insider owned 1,002,718 shares in the company, valued at $24,787,188.96. The trade was a 31.94% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. 0.89% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Kim LLC acquired a new stake in Sound Point Meridian Capital in the 2nd quarter valued at $192,821,000. Allied Private Wealth LLC acquired a new position in Sound Point Meridian Capital during the second quarter worth $984,000. Marshall Wace LLP raised its position in Sound Point Meridian Capital by 35.4% during the second quarter. Marshall Wace LLP now owns 77,152 shares of the company's stock worth $1,379,000 after acquiring an additional 20,163 shares during the period. Citadel Advisors LLC purchased a new position in Sound Point Meridian Capital during the third quarter valued at $267,000. Finally, Thomas J. Herzfeld Advisors Inc. acquired a new stake in shares of Sound Point Meridian Capital in the fourth quarter valued at about $189,000.

Sound Point Meridian Capital Stock Up 2.4%

Shares of NYSE:SPMC traded up $0.26 during trading on Tuesday, reaching $10.91. 8,218 shares of the company's stock traded hands, compared to its average volume of 34,492. Sound Point Meridian Capital has a fifty-two week low of $8.36 and a fifty-two week high of $18.60. The firm has a market cap of $223.76 million, a PE ratio of -1.78 and a beta of 1.20. The company has a 50-day simple moving average of $10.71 and a 200-day simple moving average of $11.15.

Sound Point Meridian Capital (NYSE:SPMC - Get Free Report) last announced its quarterly earnings results on Thursday, May 28th. The company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.41 by ($0.07). The company had revenue of $12.57 million during the quarter, compared to analysts' expectations of $17.20 million. On average, equities research analysts forecast that Sound Point Meridian Capital will post 1.22 EPS for the current year.

Sound Point Meridian Capital Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a $0.20 dividend. The ex-dividend date is Tuesday, September 15th. This represents a c) dividend on an annualized basis and a dividend yield of 22.0%. Sound Point Meridian Capital's payout ratio is -39.09%.

About Sound Point Meridian Capital

Sound Point Meridian Capital Inc is an externally managed, non-diversified closed-end management investment company. Its investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation equity and mezzanine tranches. Sound Point Meridian Capital Inc is based in NEW YORK.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.