Sound Point Meridian Capital (NYSE:SPMC) Major Shareholder Acquires $5,999,988.96 in Stock

Key Points

• Major shareholder Guaranty Ltd Assured bought 242,718 shares on April 30 at an average of $24.72 per share for a total of $5,999,988.96, increasing its stake to 1,002,718 shares (a 31.94% rise) as disclosed in an SEC Form 4 filing.
• Sound Point Meridian declared a monthly dividend of $0.20 per share payable June 30 to holders of record June 15, implying a 23.8% yield.
• The company missed quarterly estimates with EPS of $0.44 versus $0.55 expected and revenue of $17.95M versus $20.45M, and analysts hold a consensus "Hold" rating with an average price target of $16.10.

Sound Point Meridian Capital, Inc. (NYSE:SPMC - Get Free Report) major shareholder Guaranty Ltd Assured bought 242,718 shares of the business's stock in a transaction dated Thursday, April 30th. The shares were bought at an average price of $24.72 per share, with a total value of $5,999,988.96. Following the purchase, 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Major shareholders that own at least 10% of a company's shares are required to disclose their transactions with the SEC.

Sound Point Meridian Capital Stock Up 1.1%

Shares of NYSE SPMC traded up $0.11 during mid-day trading on Thursday, reaching $10.08. 32,372 shares of the company were exchanged, compared to its average volume of 40,658. Sound Point Meridian Capital, Inc. has a twelve month low of $8.36 and a twelve month high of $20.20. The stock has a market capitalization of $206.64 million, a P/E ratio of 4.59 and a beta of 0.66. The company's 50-day simple moving average is $9.66 and its 200-day simple moving average is $12.81.

Sound Point Meridian Capital (NYSE:SPMC - Get Free Report) last released its quarterly earnings results on Wednesday, February 11th. The company reported $0.44 EPS for the quarter, missing analysts' consensus estimates of $0.55 by ($0.11). The company had revenue of $17.95 million for the quarter, compared to analyst estimates of $20.45 million. As a group, equities research analysts expect that Sound Point Meridian Capital, Inc. will post 1.91 EPS for the current year.

Sound Point Meridian Capital Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be given a dividend of $0.20 per share. This represents a c) dividend on an annualized basis and a yield of 23.8%. The ex-dividend date of this dividend is Monday, June 15th. Sound Point Meridian Capital's dividend payout ratio (DPR) is currently -67.99%.

Hedge Funds Weigh In On Sound Point Meridian Capital

Hedge funds have recently bought and sold shares of the company. Thomas J. Herzfeld Advisors Inc. bought a new position in Sound Point Meridian Capital in the 4th quarter valued at about $189,000. Citadel Advisors LLC bought a new position in Sound Point Meridian Capital in the 3rd quarter valued at about $267,000. Virtus Investment Advisers LLC increased its holdings in Sound Point Meridian Capital by 7.5% in the 4th quarter. Virtus Investment Advisers LLC now owns 29,620 shares of the company's stock valued at $407,000 after buying an additional 2,061 shares during the period. Everest Management Corp. increased its holdings in Sound Point Meridian Capital by 5.6% in the 4th quarter. Everest Management Corp. now owns 79,798 shares of the company's stock valued at $1,097,000 after buying an additional 4,243 shares during the period. Finally, Marshall Wace LLP increased its holdings in Sound Point Meridian Capital by 35.4% in the 2nd quarter. Marshall Wace LLP now owns 77,152 shares of the company's stock valued at $1,379,000 after buying an additional 20,163 shares during the period.

Analysts Set New Price Targets

A number of equities analysts recently commented on SPMC shares. Compass Point set a $12.00 price target on shares of Sound Point Meridian Capital in a research report on Wednesday, February 11th. B. Riley Financial lowered their price target on shares of Sound Point Meridian Capital from $12.00 to $10.00 and set a "neutral" rating on the stock in a research report on Monday, March 16th. Alliance Global Partners reaffirmed a "buy" rating on shares of Sound Point Meridian Capital in a research report on Wednesday, February 11th. Finally, Zacks Research raised shares of Sound Point Meridian Capital from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $16.10.

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.

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